WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) joined U.S. Senators Marco Rubio (R-Fla.) and Jeff Flake (R-Ariz.) today in introducing the Protect Family Farms and Businesses Act (S. 3436). The legislation would prohibit the Obama administration from implementing its proposed regulations to unilaterally expand and raise the estate tax on family-owned small businesses.
“The Treasury Department should pursue policies that encourage the creation and growth of family-owned farms or businesses – not those that will increase the tax burden on families and make it more difficult to transfer ownership to the next generation,” said Sen. Moran. “I have long sought a permanent repeal of the estate tax, and I will continue to work to protect American farmers and small businesses from burdensome tax policies.”
Sen. Moran also joined 40 of his colleagues in urging U.S. Treasury Secretary Jacob Lew to withdraw the proposed regulations, writing that “they directly contradict long-standing legal precedent, create new uncertainty for taxpayers, and put family-owned businesses at a disadvantage relative to other types of businesses.”
S. 3436 is supported by the Family Business Coalition and the Coalition of Franchisee Associations (CFA).
“This bill prevents implementation of the U.S. Department of Treasury’s proposed regulations which greatly restrict estate and gift tax valuation discounts. If implemented in their current form, these regulations will greatly damage the ability of franchisees to pass their businesses down to their children and grandchildren,” said CFA Chairman Keith Miller and Executive Director Misty Chally. “CFA supports the Protect Family Farms and Businesses Act as it recognizes the limitations that are placed upon today’s franchisees and prohibits the U.S. Treasury from restricting the transfer of a franchise to family members.”
Companion legislation was introduced by Rep. Warren Davidson (OH-08) in the U.S. House of Representatives (H.R. 6100) last week.
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