WASHINGTON (Sept. 28, 2016) — The Tire Industry Association (TIA), the National Federation of Independent Business (NFIB) and nearly 4,000 other small businesses and associations are opposing a plan from the Internal Revenue Service (IRS) to change the estate tax.
Unveiled Aug. 2, the IRS proposal would make major changes to the valuation of family businesses for gift and estate tax purchases, according to a Sept. 28 NFIB press release.
The Family Owned Estate Tax Business Coalition, to which TIA, the NFIB and thousands of others belong, said the changes in estate and gift tax valuations would put family-owned businesses at a competitive disadvantage with similar businesses not owned by families.
“The estate tax is already wildly unpopular among small business owners,” said Matt Turkstra, NFIB senior manager of legislative affairs.
“As proposed, the new IRS regulation threatens to significantly raise the tax burden on family-owned businesses, making it much more difficult for these enterprises to be passed to the next generation.”
The coalition sent a letter Sept. 28 to Treasury Secretary Jacob Lew, asking him to withdraw the new estate tax rules.
“These rules would impose significant new tax costs on family-owned businesses, diverting capital from business investment, costing jobs and threatening the ability of families to pass businesses on to the next generation of owners,” the letter stated.
Earlier this year, the coalition contacted U.S. senators urging their support for a bill that would have fully and permanently repealed the estate tax. At the time, the coalition had more than 100 members.