The American Family Business Institute Responds to President Obama's SBA Announcement

by Charles Chamberlayne - No Comments
Posted on January 13th, 2012 3:15 pm

For Immediate Release: Friday, January 13, 2012
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
charles@americanfamilybusinesses.org

The American Family Business Institute
Responds to President Obama’s SBA Announcement

WASHINGTON, D.C. – After President Barack Obama announced that he will elevate the head of the U.S. Small Business Administration (SBA) to a cabinet-level position, Dick Patten, President of the American Family Business Institute (AFBI), today issued the following statement:

“Inviting Karen Mills to more White House meetings is not going to address our Nation’s need for fundamental tax reform, less burdensome regulations, or mitigate any of the effects of a job-crushing new health care law and its employer mandate.  Rather than superficially elevate the Small Business Administration chief to a cabinet level position to make headlines, the President should roll up his sleeves like America’s family farmers and business owners have done during these tough economic times and get to work on creating an economic environment that promotes job growth.”

    The American Family Business Institute (AFBI) represents family-business owners throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.

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Coalition against Estate & Inheritance Taxes: Governor Heineman is Taking a Necessary Step

by Charles Chamberlayne - No Comments
Posted on January 13th, 2012 10:17 am

For Immediate Release: Friday, January 13, 2012
AFBI Contact: Charles Chamberlayne, 202-969-2444 ext. 505
charles@americanfamilybusinesses.org

Coalition against Estate & Inheritance Taxes:
GOVERNOR HEINEMAN IS TAKING A NECESSARY STEP
Group Urges Nebraska Legislature to Move on Governor’s Request
 
LINCOLN, NE – Following Nebraska Governor Dave Heineman’s proposal to eliminate the State’s inheritance tax during his State of the State this morning, today a coalition of organizations against estate and inheritance taxes released the following joint statement:

“By calling for the elimination of the death tax for Nebraska taxpayers, Governor Dave Heineman is taking a necessary step to remove an unfair burden from the backs of family businesses and farms that are struggling to grow, retain jobs, and plan for succession in Nebraska.  His action will keep family businesses in Nebraska and attract new businesses away from other states that choose to penalize America’s jobs creators with a death tax upon passing.  We urge the state legislature to join the Governor and State Senator Cornett in helping to protect Nebraska’s rich heritage of family farming and ranching by passing LB 970.”

The coalition against estate and inheritance taxes includes the Platte Institute, an economic think tank dedicated to improving the quality of life for all citizens of Nebraska through public policy solutions, American Family Business Institute (AFBI), a trade association representing family business owners and farmers, Americans for Tax Reform (ATR), an organization devoted to opposing any federal or state efforts to increase taxes, and Americans for Prosperity (AFP), an organization of grassroots activists on fiscal and regulatory restraint.

According to Tax Foundation data, Nebraska jumped to the 29th business-friendly state in the U.S. from the 44thth in 2006 under Governor Heineman’s leadership. A Forbes Magazine article recently labeled Nebraska as a place “not to die in 2012” because it is currently one of eight states that still levies an inheritance tax.  A bill introduced by State Senator Cornett, LB 970, helps to alleviate these issues by eliminating the inheritance tax on beneficiaries of all decedents (whether the decedents are residents or nonresidents of Nebraska) who die on or after January 1, 2013. The bill also reduces the top corporate income tax rate to 6.7 percent from its current 7.81 percent, reduces the individual income tax to a matching 6.7 percent from its current rate of 6.84 percent and makes some other changes to income tax brackets.  All of the provisions in the bill would go into effect January 1st, 2013.

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Tax Coalition to Tennessee Gov. Bill Haslam: Tennessee is still at a Disadvantage

by Charles Chamberlayne - No Comments
Posted on January 12th, 2012 3:19 pm

For Immediate Release: Wednesday, January 11, 2012
AFBI Contact: Charles Chamberlayne, 202-969-2444 ext. 505
charles @americanfamilybusinesses.org

Tax Coalition to Tennessee Gov. Bill Haslam:
Tennessee is still at a Disadvantage
Tax Coalition Applauds Governor’s Legislative Announcement
& Pushes for Full Inheritance Tax Repeal

WASHINGTON, D.C. – Following Tennessee Governor Bill Haslam’s announcement regarding his legislative priorities for 2012, the American Family Business Institute (AFBI), Americans for Tax Reform (ATR), Americans for Prosperity (AFP), National Taxpayers Union (NTU), and the Beacon Center of Tennessee, today released the following statement: 

“Governor Haslam is right; the Tennessee death tax is a job killer that chases family businesses away from the state. However, even with an increased exemption Tennessee will still be at a competitive disadvantage to States like Florida that do not have death taxes. While we applaud the Governor for taking a step in the right direction to make estate tax reform a priority, we urge him and the legislature to completely repeal the tax rather than raise the exemption.”

Last month, the American Family Business Institute (AFBI), a trade association representing family business owners and farmers, Americans for Tax Reform (ATR), an organization devoted to opposing any federal or state efforts to increase taxes, Americans for Prosperity (AFP), an organization of grassroots activists on fiscal and regulatory restraint, the National Taxpayers Union, an organization against government growth and wasteful spending, and the Beacon Center of Tennessee, a research organization dedicated to free market policy solutions, sent a letter to Governor Haslam expressing grave concern regarding his statements indicating a reluctance to repeal the Tennessee inheritance tax (or estate tax) and urged him to quickly repeal the tax.

Today, the Associated Press reported that Tennessee Governor Bill Haslam will include reductions to Tennessee’s inheritance tax in his legislative priorities for the year. Haslam stated, “There's a whole lot of people who used to live in Tennessee who don't anymore because it's cheaper to die in Florida. I can tell you a whole lot of people who spend less than half their year in Tennessee to avoid that estate tax specifically.”

Many seniors flock to states like Florida, to avoid taxes on their hard-earned wealth. According to a recent study by Art Laffer, a world renowned economist, Tennessee’s inheritance tax is the single greatest reason why wealthy people do not want to live in Tennessee. The Tennessee tax burden ties up working capital in expensive estate plans and life insurance policies. The study also notes that Tennessee’s inheritance tax has already reduced the state’s gross domestic product (GDP) by up to $18.2 billion over the last ten years.  Economic growth from the elimination of the state’s inheritance tax was projected to add at least $7 billion to state and local revenue over the last ten years. The tax currently accounts for less than 1 percent of total state revenues.
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ATR & AFBI: End Punitive Tax on Hardworking Hoosiers

by Charles Chamberlayne - No Comments
Posted on December 14th, 2011 5:15 pm

For Immediate Release: Wednesday, December 14, 2011
AFBI Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

ATR & AFBI:
End Punitive Tax on Hardworking Hoosiers
Americans for Tax Reform & American Family Business Institute
Urge Indiana State House and Senate to Pass Death Tax Legislation
 
Americans for Tax Reform (ATR), an organization devoted to opposing any federal or state efforts to increase taxes, and the American Family Business Institute (AFBI), a trade association representing family business owners and farmers, today sent a letter to the Indiana State Senate and House of Representatives urging them to support State Senator Jim Banks’ pending legislation to phase out Indiana’s death tax. 

     The letter states, “This must be a priority next year. This is a punitive tax on hardworking Hoosiers that ultimately drives them out of state. Indiana should join the number of states who have taken recent action to phase out this economically destructive tax.”

The complete text of the letter reads:


December 12, 2011

Indiana House of Representatives
Indiana Senate

Dear Legislator,

We write in support of Sen. Jim Banks’ pending legislation to phase out Indiana’s death tax. This must be a priority next year. This is a punitive tax on hardworking Hoosiers that ultimately drives them out of state. Indiana should join the number of states who have taken recent action to phase out this economically destructive tax.

Indiana’s death tax is complex and compliance is onerous. But most importantly, it punishes the very ideas of hard work, job creation and savings. Those who pull themselves out of poverty by creating a small business are robbed by their government posthumously as they seek to pass on the fruits of their labors to their descendants. Family farmers are punished as they pass along land and equipment to the next generation. And citizens who pay taxes on income, sales and property their entire lives are hit with yet another layer of taxation after passing away.

There is a burgeoning national trend to do away with death taxes at the state level. Most recently, neighboring Ohio voted to scrap the tax. While Indiana has prided itself on its ability to compete with the rest of the Midwest due to a favorable business climate, the opposition is stiffening. Governors across the region were elected in 2010 with the mandate to reduce the size of government and improve states’ tax climates.

In Maine, Gov. Paul LePage signed a bill to double the estate tax exemption, while efforts to increase the tax failed recently in North Carolina and Oregon. Indiana should act now or risk erosion of the state’s comparative advantage.

21 states and Washington D.C. still levy either an estate or inheritance tax. Those who do not are a magnet for job creation and economic growth. We urge Indiana to join the growing coalition of states who have recognized the negative impact of the death tax and its barriers to productivity and growth.

For more information on this issue, please contact ATR state affairs manager Joshua Culling at jculling@atr.org, or palmer.schoening@nodeathtax.org.
 
Onward,

Grover Norquist,
President, Americans for Tax Reform

Dick Patten
President, American Family Business Institute

CC: Governor Mitch Daniels

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Tax Coalition Calls on Tennessee Governor Bill Haslam to Quickly Repeal Inheritance Tax

No Comments
Posted on December 14th, 2011 3:21 pm

For Immediate Release: Wednesday, December 14, 2011
AFBI Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

Tax Coalition Calls on Tennessee Governor Bill Haslam to Quickly Repeal Inheritance Tax

WASHINGTON, D.C. – The American Family Business Institute (AFBI), a trade association representing family business owners and farmers, Americans for Tax Reform (ATR), an organization devoted to opposing any federal or state efforts to increase taxes, Americans for Prosperity (AFP), an organization of grassroots activists on fiscal and regulatory restraint, the National Taxpayers Union, an organization against government growth and wasteful spending, and the Beacon Center of Tennessee, a research organization dedicated to free market policy solutions, today sent a letter to Tennessee Governor Bill Haslam expressing grave concern regarding his recent statements indicating a reluctance to repeal the Tennessee inheritance tax. 

     The letter states, “We are concerned about some of your recent statements indicating a reluctance to usher through repeal of the Tennessee Inheritance Tax in 2012. We are, however, confident that with your leadership and the support of a very motivated legislature, this important policy measure will be pursued. With control of the Governor’s office and state legislature in Republican hands, now is the time to push forward to swiftly eliminate the Tennessee Inheritance Tax.”

The complete text of the letter reads:

December 15, 2011

Office of Governor Bill Haslam
1st Floor, State Capitol
Nashville, TN 37243   

Dear Governor Haslam,

We are encouraged, this year, by your leadership and the work of the Tennessee assembly members to promote a friendlier economic environment for Tennessee’s family business owners, family farmers, and their many employees. In particular, we are encouraged by many members who have publicly vowed to work towards eliminating Tennessee’s Inheritance Tax which is a major obstacle to the survival of family owned businesses and farms.

It is true that while serious reforms like eliminating the death tax present short-term challenges, they are necessary steps towards leaving a legacy of economic prosperity in Tennessee and promoting job creation from the most productive sector of the economy – family businesses.

A recent study on the Tennessee Inheritance tax by Laffer Associates states that “Tennessee’s estate and gift tax is the single greatest reason why wealthy people don’t want to live in Tennessee.” For those that continue to operate in Tennessee, the looming Death Tax burden ties up their working capital in expensive estate plans and life insurance policies. Tennessee’s estate and gift tax, the study claims, has already reduced state GDP by up to $18.2 billion over the past ten years. In addition, the robust economic growth resulting from elimination of the state’s inheritance tax, would have added at least $7 billion to state coffers over the last ten years. The tax currently accounts for less than 1% of total state revenues.

The conditions for repeal will never be as favorable as now. We are concerned about some of your recent statements indicating a reluctance to usher through repeal of the Tennessee Inheritance Tax in 2012. We are, however, confident that with your leadership and the support of a very motivated legislature, this important policy measure will be pursued.

Many winning candidates’ top tax issue, and a pillar of your pro-growth platform during the 2010 election, was promoting the complete repeal of the Tennessee inheritance tax. With control of the Governor’s office and state legislature in Republican hands, now is the time to push forward to swiftly eliminate the Tennessee Inheritance Tax.

The state of Ohio recently repealed their state Estate Tax, making Ohio a more attractive place to keep capital and grow businesses. This was a widely reported and nationally touted victory. We strongly encourage you to work towards full repeal of the Inheritance Tax at the beginning of the next legislative session.

Please contact us if we can be of assistance in this crucial effort.

Sincerely,
                                              
Dick Patten, President, American Family Business Institute
Grover Norquist, President, Americans for Tax Reform
Tim Phillips, President, Americans for Prosperity 
Duane Parde, President, National Taxpayers Union
Justin Owen, President and CEO, Beacon Center of Tennessee         

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American Family Business Institute: This Bill is a Matter of Survival

by Charles Chamberlayne - No Comments
Posted on December 13th, 2011 5:17 pm

For Immediate Release: Tuesday, December 13, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute:
This Bill is a Matter of Survival

WASHINGTON, D.C. – Following House passage of the Middle Class Tax Relief and Job Creation Act (H.R. 3630), Dick Patten, President of the American Family Business Institute (AFBI), today issued the following statement:

“For many of America’s family business owners and their employees, the House passage of the Middle Class Tax Relief and Job Creation Act is a matter of survival. The tax credits in this bill are not only critical for hardworking Americans trying to keep up with expensive bills, but they are also critical for struggling American family businesses attempting to replace aging equipment and machinery. We strongly urge the Senate to act on this bill that helps provide some relief for family budgets and prevents further job losses across the country.” 

The Middle Class Tax Relief and Job Creation Act provides a one-year extension of the temporary payroll tax relief enacted in 2010. It ensures that taxes will stay lower for nearly 170 million Americans who pay payroll taxes, with the average working family saving $1,000 in 2012.  In addition to extending the current lower payroll tax rate for employees for one year, the bill also extends 100 percent business expensing through 2012. This allows family businesses, large and small, to invest in new machinery and equipment to grow their businesses and create jobs. 

    The American Family Business Institute (AFBI) represents family-business owners throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.

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American Family Business Institute Praises House Passage of the Farm Dust Act

by Charles Chamberlayne - No Comments
Posted on December 8th, 2011 5:20 pm

For Immediate Release: Thursday, December 8, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

AMERICAN FAMILY BUSINESS INSTITUTE
PRAISES HOUSE PASSAGE OF THE FARM DUST ACT
AFBI President Praises Rep. Noem for Protecting Family Farms

WASHINGTON, D.C. – Following House passage of the Farm Dust Regulation Prevention Act of 2011, Dick Patten, President of the American Family Business Institute, today issued the following statement:

“These tough economic times have put immense pressure on many family farms and backdoor EPA regulations only further hinder their ability to thrive. The American Family Businesses Institute applauds Kristi Noem, a longtime supporter of family businesses, for her leadership on the Farm Dust Regulation Prevention Act of 2011, which helps protect family farms from the EPA’s vice and the economic and employment impacts of their arbitrary dust regulations.”   

The Farm Dust Regulation Prevention Act of 2011 (H.R. 1633), introduced by Rep. Kristi Noem (R-SD),  prohibits the Environmental Protection Agency (EPA) from proposing, finalizing, implementing, or enforcing any regulation revising the National Ambient Air Quality Standard applicable to coarse particulate matter under the Clean Air Act for at least one year from the date of enactment. The bill specifically helps America’s family farms create jobs by allowing them to provide America’s crops without drowning them in compliance costs from paperwork and red tape. 

    The American Family Business Institute (AFBI) represents family-business owners, large and small, throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.

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American Family Business Institute to the Senate: Follow Through for American Mom and Pop Shops

No Comments
Posted on December 7th, 2011 5:18 pm

For Immediate Release: Wednesday, December 7, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute to the Senate:
FOLLOW THROUGH FOR
AMERICAN MOM AND POP SHOPS

WASHINGTON, D.C. – Following House passage of the Regulations from the Executive in Need of Scrutiny Act (REINS Act), Dick Patten, President of the American Family Business Institute, today issued the following statement:

“The American Family Business Institute backs the House Leadership's pledge to support American jobs and effort this week to pass the REINS Act. We strongly urge the Senate to follow through on this bill which is desperately needed to remove barriers to success for American mom and pop shops.”

The REINS Act would remove the excessive power of federal agencies to impose new regulations without congressional consideration. In these tough economic times, these regulations are hampering job creation and growth among family businesses across the country.

    The American Family Business Institute (AFBI) represents family-business owners, large and small, throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.
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American Family Business Institute Applauds Passage of House Bill to Remove Barriers to Job Creators

by Charles Chamberlayne - No Comments
Posted on December 5th, 2011 5:23 pm

For Immediate Release: Monday, December 5, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute Applauds Passage of House Bill to Remove Barriers to Job Creators

WASHINGTON, D.C. – American Family Business Institute (AFBI) President, Dick Patten, today issued a statement following House passage of the Regulatory Flexibility Improvement Act of 2011:

    “Over the past four years, America’s family businesses have been hammered by a sluggish economy and over-burdensome regulations, leading them to shed jobs and decrease investment. The last thing America’s family businesses need is to get tangled in the red tape of even more federal government regulations. On behalf of the millions of family businesses across America, we applaud House Small Business Committee Chairman Sam Graves and House Judiciary Chairman Lamar Smith for introducing and ushering the Regulatory Flexibility Improvement Act of 2011 through the House of Representatives and urge the Senate to pass it to help remove barriers for job creators.”

    The American Family Business Institute (AFBI) represents family-business owners, large and small, throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.
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American Family Business Institute: McDermott's Death Tax Hike is DOA

by Charles Chamberlayne - No Comments
Posted on November 18th, 2011 5:24 pm

For Immediate Release: Friday, November 18, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute:
McDermott’s Death Tax Hike is DOA

Washington, D.C. – In response to the legislation introduced by Rep. Jim Dermott (WA-7) that raises the top estate tax rate to 55 percent, Dick Patten of the American Family Business Institute (AFBI) today issued the following statement:

“There’s nothing ‘sensible’ about raising taxes on America’s job creators during these tough economic times, where small businesses have seen the brunt of job losses,” said AFBI President Dick Patten. “America does not support taxing away the lifetime earnings of family businesses and farms. Fortunately for job creators who hope to put Washington State’s workers back to work and pass on their businesses to the next generation, Jim McDermott’s proposed death tax hike is DOA in the House.”

According to a Washington Policy Center data report by former Congressional Budget Office Director Douglas Holtz-Eakin, repealing the federal estate tax would bring over 33,000 new jobs to Washington State and as much as 1.5 million jobs nationally. This repeal would reduce Washington’s unemployment rate by a full percent. Unfortunately, Rep. McDermott’s bill, the Sensible Estate Tax Act of 2011, raises the top estate tax rate in America to 55 percent. 

According to a recent Harris Interactive poll, 67 percent of the American public believes that the estate tax should be permanently repealed. As a result, 190 members of both parties in the U.S. House of Representatives are currently cosponsoring H.R. 1259, the Death Tax Repeal Permanency Act of 2011. Only a handful of the 3,500 bills currently offered in the House have reached that level of prominence.
           
The American Family Business Institute (AFBI) represents family-business owners, large and small, throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.

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American Family Business Institute Leads Coalition Letter to Prevent Death Tax & Gift Tax Hikes to the Deficit Super Committee

by Charles Chamberlayne - No Comments
Posted on November 17th, 2011 5:27 pm

For Immediate Release: Thursday, November 17, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute Leads
Coalition Letter to Prevent Death Tax & Gift Tax Hikes to the Deficit Super Committee

WASHINGTON, D.C. – The American Family Business Institute (AFBI), a trade association representing family business owners and farmers, today led a coalition of 29 organizations in a letter to members of the congressional deficit-super committee urging them to leave estate- and gift-tax increases completely off the table as they deliberate measures to reduce the deficit.

     The letter states, “We urge you to seek ways to reduce or eliminate estate and gift taxes, and to reject measures that will further burden family businesses and farms, when considering how to reduce the nation’s deficit.”

The letter, which makes clear that estate tax repeal is critical to the survival of many of America’s family businesses, is cosigned by a diverse group of organizations including but not limited to the Association for Manufacturing Technology, Hardwood Federation, Wine & Spirits Wholesalers of America, National Black Chamber of Commerce, Americans for Tax Reform, Hispanic Leadership Fund, Association of Equipment Manufacturers, Forest Landowners Association, 60 Plus Association, National Lumber and Building Material Dealers Association, National Taxpayers Union, and Americans for Prosperity. The complete text of the letter reads:

U.S. Congress
Joint Select Committee on Deficit Reduction
Washington, D.C. 20515

Dear Member of the Joint Select Committee,

In order to prevent the dissolution of family businesses, America’s main engines of economic growth, the undersigned organizations urge you to leave any estate or gift tax increases (whether through lowering exemptions or increasing rates) completely off of the table as you deliberate measures to reduce the deficit.

Congress’ inability to establish a sensible transfer tax policy over the past three years has added to the already uncertain and volatile economic environment America’s family businesses and farms now face. In January 2011 estate and gift taxes took a drastic, unprecedented swing from 0% to 35%. This ever-changing nature of the transfer tax system has created major planning problems for individuals hoping to pass their businesses on to the next generation.

The current estate tax rate is already hindering family businesses’ survival. In a study published soon after the current compromise of a $5 million exemption and 35% rate was struck, Duquesne University Associate Economics Professor Antony Davies reported on the number of small businesses, farms and households that will be impacted under current law. He found that as many as 22,000 farms, 14,000 real estate partnerships, 29,000 privately-held corporations, and 170,000 total households are susceptible to the tax this year. In addition, up to 67 percent of estates susceptible to paying the estate tax this year include farm and small business assets. Moving to a more confiscatory estate tax will only increase the number of family businesses that are forced to wrestle with the estate tax.

The current gift tax exemption helps family businesses and farms shield their hard-earned assets from the nightmare of the estate tax. Moving to a lower gift tax exemption will force many business owners to return to the drawing board in designing their lifetime financial planning structure, diverting precious time and capital into compliance and away from investing back in their businesses and workers. Currently, a bi-partisan group of over 190 House lawmakers have cosponsored legislation to repeal the estate tax while extending the current gift tax at a $5 million exemption and 35%, making it unlikely that the chamber would support a measure to subject more individuals and businesses to these levies. In addition, the American Family Business Foundation recently published a study which shows that repeal of the estate tax could provide up to 30% of the $1.2 trillion deficit reduction goal over 10 years, when macroeconomic effects of ending the estate tax are considered.

We urge you to seek ways to reduce or eliminate estate and gift taxes, and to reject measures that will further burden family businesses and farms, when considering how to reduce the nation’s deficit.

Signed,

Dick Patten
President, American Family Business Institute

Douglas K. Woods
President, Association for Manufacturing Technology

Deb Hawkinson
Executive Director, Hardwood Federation

Roy Littlefield
Executive Vice President, Tire Industry Association

Marta Gates
Managing Director, Service Station Dealers of America

Jim Martin
Chairman, 60 Plus Association

Jim Rowland
Vice President, Wine & Spirits Wholesalers of America

Harry C. Alford
President/CEO, National Black Chamber of Commerce

Grover Norquist,
President, Americans for Tax Reform

Phyllis Schlafly
Founder and President, Eagle Forum.

Mario H. Lopez
President, Hispanic Leadership Fund

Eben Wyman
NUCA, Representing Utility and Excavation Contractors

Seton Motley
President, Less Government

Jonathan Melchi
Manager of Government Affairs, Heating, Airconditioning and Refrigeration Distributors International (HARDI)

Steve Entin,
President, IRET

Lew Uhler
President, National Tax Limitation Committee

Penny Nance
CEO, Concerned Women for America

J. Barry Epperson
General Counsel, Associated Wire Rope Fabricators

Nick Yaksich
Vice President, Association of Equipment Manufacturers (AEM)

Scott Jones
CEO, Forest Landowners Association

Ben Gann
Director of Legislative Affairs & Grassroots Activities, National Lumber and Building Material Dealers Association

Duane Parde
President, National Taxpayers Union

Phil Kerpen
Vice President for Policy, Americans for Prosperity

Gary Bauer
President, American Values

R. Clarke Cooper
Executive Director, Log Cabin Republicans

John Berlau
Director, Center for Investors and Entrepreneurs, Competitive Enterprise Institute

Richard Manning
Americans for Limited Government

John Snyder
Partner, FSB FisherBroyles

Harold Siegel
President, Excelsior Graphics, Inc.

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American Family Business Institute: Pass a CR Now, Prevent Dissolution of Family Businesses

by Charles Chamberlayne - No Comments
Posted on November 17th, 2011 5:25 pm

For Immediate Release: Thursday, November 17, 2011
Contact: Charles Chamberlayne, 202-969-2444 ext. 505
Charles.Chamberlayne@nodeathtax.org

American Family Business Institute:
Pass a CR Now, Prevent Dissolution of Family Businesses

WASHINGTON, D.C. – With the Continuing Resolution set to expire today, American Family Business Institute (AFBI) President, Dick Patten, issued the following statement:

    “On behalf of family-owned businesses across America, I urge Congress to quickly pass a Continuing Resolution now that does not hike taxes on America’s family farmers and businesses. The inability of our Congress to establish certainty by passing a Continuing Resolution adds to an already volatile environment for us. Congress needs to pass a Continuing Resolution now and quickly take up tax reform that includes a permanent death tax repeal to prevent the dissolution of America’s main job-creating engines – family-owned businesses.”

    The American Family Business Institute (AFBI) represents family-business owners, large and small, throughout America. AFBI was founded in 1994 and was one of the first organizations to call for a permanent repeal of the estate tax.  Today, it is a coalition leader in Washington, D.C. of many organizations fighting to repeal the estate tax and support American family-owned businesses.
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Republicans Cut Themselves Short By Failing to Include Estate Tax Repeal in Plan

by Dick Patten - No Comments
Posted on November 10th, 2011 1:22 pm

In response to the first deficit reduction offer released by GOP Members of the Super Committee – an offer which included keeping the current 35 percent Federal Estate Tax rate – the American Family Business Institute’s (AFBI) President Dick Patten released the following statement:

“Republicans serving on the Super Committee cut themselves short by including Federal Estate Taxes as part of their deficit reduction plan.

“If the Super Committee were to propose estate tax repeal over keeping the current estate tax rate, they could actually raise GPD by $1 trillion more and reduce the deficit by an additional 10 percent over the 10-year budget period, according to a recent study by the American Family Business Foundation.

“Furthermore, two of the Super Committee GOP members are signers of AFBI’s ‘Death Tax Repeal Pledge’ and a majority of both Republican and Democrat members have previously supported repeal. This is not the policy recommendation America’s family businesses – the nation’s top job producers – would expect. 

“Going forward, AFBI strongly urges all members of the Super Committee to recommend death tax repeal as a part of their deficit reduction plan.”

The GOP offer was reportedly rejected by Democrats.

Tags: committee, death tax, estate tax

A conversation between Rush & an Estate Planner

by AFBI - No Comments
Posted on November 2nd, 2011 5:23 pm

A caller on the Rush Limbaugh radio program asked recently about estate taxes. Rush's take? Read below:

“Every year estate planners want to talk to me about estate planning and it seems that they think that the primary objective of any estate planning is going to be to keep money away from the government. So they want to structure trusts, charitable donations, foundations, any number of things, and I always say to 'em, "Yeah, but the problem with doing that is I am getting rid of all my money before I die." "Yeah, but at least the government ain't gonna get it." "Well, I don't care, frankly. I want access to as much of it as I can before I die."

I don't want to have to shelter it all now while I'm still alive so I can't get it just to keep the government from getting it sometime. I go round and round with 'em on it.”

Here’s the full transcript:http://www.rushlimbaugh.com/daily/2011/10/25/steve_jobs_and_the_death_tax

What would you tell an estate tax planner?

Tags: death tax, estate planning, estate tax, rush

Death Tax Repeal - HR 1259, adopted in RSC Jobs Plan

by Palmer Schoening - No Comments
Posted on November 2nd, 2011 1:24 pm

Today, The Republican Study Committee (RSC) released their "Jobs through Growth Act" which includes permanent death tax repeal, modeled after Congressman Brady's "Death Tax Repeal Permanency Act of 2011" as a main pillar for job creation. Congressman Brady's "Death Tax Repeal Permanency Act of 2011" has been AFBI's main focus in the House of Representatives. An extensive campaign by AFBI to promote HR 1259 has helped the bill gain widespread support; the bill currently has 188 bipartisan cosponsors. According to the National Tax Payers Union, only 20 other bills of the 3500+ currently offered have 150 or more cosponsors - putting death tax repeal in the top .5%. The enthusiastic support from both sides of the isle has encouraged the 177 member Republican Study Committee to adopt the legislative language of HR 1259 for their "Growth through Jobs Act" which AFBI has officially endorsed. We will continue to keep you updated on both the "Jobs through Growth Act" and the "Death Tax Repeal Permanency Act of 2011" as they make their way through Congress.

Tags: death tax, estate tax, republican study committee, rsc

North Carolina Voters Favor Repealing NC Estate Tax

by Palmer Schoening - No Comments
Posted on November 1st, 2011 4:11 pm

According to a new Civitas Institute poll, voters in North Carolina don't care much for their state estate tax. In fact, 66% oppose it, compared to just 25% who favor. This matches up with polling at the national level - 2 out of every 3 voters favor Federal Estate Tax Repeal.

Click here to read the article detailing North Carolina voters' opinion of their state estate tax. The poll was conducted; for the Civitas Institute in Raleigh, North Carolina.

Tags: death tax, estate tax, north carolina

AFBF Forbes Oped & Video from Capitol Hill Event

by Palmer Schoening - No Comments
Posted on October 26th, 2011 2:32 pm

Former Treasury Economist Stephen Entin and AFBF President Dick Patten coauthored an oped which appeared today on Forbes.com explaining how repealing the Federal Estate Tax will reduce the deficit.

 

The article is based on a report we published last week showing that eliminating the Death Tax would cover just over 30% of the $1.2 trillion in deficit reduction the Super Committee must find by Thanksgiving. 

 

You can learn more by watching this video of our event last week in Washington, D.C., attended by nearly 100 Capitol Hill staffers, journalists and others.

  

Don't be bamboozled. Repealing the estate tax - which, by the way, is supported by over 500 economists from across the country - is the best way forward.

 

 

 

Tags: death tax, estate tax, supercommittee

AFBF Releases New Report: Super Committee Deficit Mandate Could Be Reduced by Over 30% with Federal Estate Tax Repeal

by Dick Patten - No Comments
Posted on October 18th, 2011 3:13 pm

Congress’ new Joint Select Committee on Deficit Reduction has been tasked with slashing a minimum of $1.2 trillion from the projected federal budget deficit over the next decade and pressure is already mounting for the so-called “super-committee” to include higher estate taxes as part of its plan. 

But a new report released today by the American Family Business Foundation (AFBF) shows that repealing the federal estate tax would do more to reduce the deficit than increasing the tax, generating enough new revenue to cover just over 30% of the $1.2 trillion in deficit reduction required by 2021. The study was conducted by tax policy expert Stephen J. Entin, the president of the Institute for Research on the Economics of Taxation, and a former deputy undersecretary of the Treasury. 

Entin’s analysis examined the revenue-generating potential of various estate tax exemptions and rates.

Support for higher estate taxes in the name of increasing government revenues or reducing deficits is based on the unrealistic theory that every dollar not collected by the Treasury is a dollar lost – what economists dub “static” loss, Entin explained.

In the real economy, however, that same dollar, if not claimed by government, is often invested in new equipment, employees, or technology intended to increase a company’s revenue. As companies grow, they produce more revenue for government as well. It is this “dynamic” activity that Entin reviews in his AFBF report, “Estate Taxes, Deficits, and Budget Implications”.

“This dynamic method demonstrates that the estate tax reduction would significantly lower, not raise, the federal deficit, and shows that the potential gains in GDP are substantial,” said Entin. 

When compared to the various estate tax rate and exemption combinations being recommended by members of Congress, Entin calculates that repeal is by far the best policy option.  Across a 10-year budget window – 2012 to 2021 – he finds that repeal of the federal estate tax would:

•cover 30.18% of the $1.2 trillion in deficit reduction required of the Super Committee by 2021;

•reduce the total budget deficit by 5.19% over the period and by 11.49% in 2021;

•lead to a 2.26% increase in GDP ($538 billion) by 2021, for a cumulative gain of nearly $3 trillion over the period, compared to what would have happened under current law;

•increase federal revenues over the 10-year period by about $362 billion (compared to current estate tax law); by 2021 the annual gain would be about $88 billion per year.

The chart below shows the positive impacts of Federal Estate Tax repeal:

According to AFBF President Dick Patten, “Elimination of the estate tax is as close as one gets to a free lunch in economics. It is time to take advantage of it.”

Tags: afbf, death tax, entin, estate tax, super committee

AFBF Releases Letter Signed by Hundreds of Prominent Economists Across Nation Supporting Repeal

by Dick Patten - No Comments
Posted on October 18th, 2011 3:09 pm

Hundreds of prominent economists weighed in on the estate tax debate today with a joint statement supporting estate-tax repeal. The statement commemorates the 10th Anniversary of an open letter written by the late economist and Nobel Laureate Milton Friedman in support of repeal.

The original letter had been signed by Friedman and 277 of his colleagues in the field of economics. AFBF re-released the letter today with 259 new signatories, for a total of 537 unique supporters.

AFBF’s re-release of the open letter (originally circulated in 2001) revealed the enormous support estate-tax repeal enjoys among mainstream academic and professional economists. Friedman’s letter explained that the estate tax ties up capital, punishes saving and investing, fails to raise substantial revenue, and increases economic inequality.

The new signatories come from 44 states and the District of Columbia, and include another Nobel Laureate; several former Federal Reserve Bank Presidents; and Chairs and Members of the Council of Economic Advisers under Presidents Kennedy, Ford, Reagan, and George W. Bush.

Signers also include former chief and senior economists from a number of federal government agencies, international organizations and financial firms, including – among others – the Congressional Budget Office, Department of Labor, Department of the Treasury, Dunn & Bradstreet, Federal Trade Commission, Joint Economic Committee, International Monetary Fund, Office of Management and Budget, Securities and Exchange Commission, and World Bank.

This list of economists includes individuals who have served as officers of nearly every major economics association, including the American Economic Association and American Finance Association, and have served as editors of most top economic journals, including the American Economic Review, the Journal of Economic and Business Statistics and the International Economic Review.

Tags: afbf, afbi, estate tax, milton friedman