WASHINGTON, D.C. – Because of the Working Families Tax Cuts, family farms and small businesses can plan with confidence for the near future and the next generation. The law increased the Death Tax exemption and made it permanent, helping more family-owned small businesses survive, including 2 million family-owned farms. During a webinar conducted by a national trade association for insurers and financial advisors, a Missouri trust and estates lawyer praised the permanent tax relief as “good news” because “now we can do planning and talk about a law that will be around for a while.” 

“Family farms and businesses are getting the permanence and stability they need to confidently prepare for future generations. Instead of having to write and rewrite plans in response to changing tax policy from Washington – or calculating worst-case scenarios – families will now have the peace of mind that they can pass the torch to their children and grandchildren thanks to the Working Families Tax Cuts,” said Ways and Means Committee Chairman Jason Smith (MO-08). “Family-owned small businesses punch above their weight in creating jobs for workers and strong communities across this country. The Working Families Tax Cuts ensure Mom-and-Pop businesses continue to thrive, create jobs, and compete on an equal playing field with major corporations.” 

Highlights: 

• Working Families Tax Cuts brought stability to the tax code: “The big news for estate planners is, with the changes in the estate tax laws in OBBBA, we now have a stable law for the first time in decades.”
• Families no longer must worry about constant change from Washington: “We’ve had a rise in estate tax exemption amounts and lowering of rates in the past, but they always had sunset provisions. The enactment of OBBBA in July is about as permanent as it gets.”
• Permanent doubled death tax exemption is a relief for family-owned businesses: “It takes [the exemption level] off the worry list for a lot of people.”

In testimony before the Ways and Means Committee, an estate planning expert warned that a potential expiration of the 20 percent small business deduction and doubled death tax exemption would have wreaked havoc on the future of America’s family-owned businesses: “My phone has been ringing off the hook.” Permanence of these policies avoided the looming tax hike on all Americans, including family-owned businesses.

The Working Families Tax Cuts will preserve or create 7 million jobs, including generating 1 million jobs and $750 billion in new economic growth from small businesses alone.