Saying It Out Loud September 2026, By Pat Soldano and Tim Schultz

Wealth Taxes, Estate Taxes Are Not a Good Formula for Family-Owned Businesses Success

It’s not fun contemplating triple taxation on hard-earned income, but two bad tax policies, one current law and another a proposal gathering momentum, take us down this very rocky road.

The Estate Tax, or more accurately described as “The Death Tax”, is currently the law of the land. The other, The Wealth Tax, or better described as “The Savings Penalty Tax” has 16 various bills pending in either the House or Senate, with new co-sponsors joining on a regular basis. For family-owned businesses trying to survive, this kind of 1-2-3 tax hit will be devastating.

Tax Number One: family businesses are taxed on their income and profits.

Tax Number Two: proposed state and federal Wealth Taxes are calling from two to five percent, or more, of your already taxed accumulated assets, or what you have managed to save, every year!

Tax Number Three: when the owner of a family-owned business dies, there is an Estate Tax of 40% on any value above exemptions levels.

For families of family-owned businesses these taxes siphon away a business’s liquidity, operational cash flow every year, hurts the communities in which they operate, and then when the owner passes the “Death Tax” kicks in with a vengeance.

We’ve been fighting Estate Tax, or “Death Tax,” policies for decades and we’ve had success with raising the lifetime exemption from $600,000 in 1995 (about $1.3 million in today’s dollars) to $15,000,000 today. And we’re still battling on Capitol Hill for unexempted portions to be taxed not at 40%, but at 20%.

While we continue our long-term efforts to fully repeal the Estate Tax, we now face a second front of attack on a lifetime of savings. So called Wealth Taxes are the latest effort to generate more revenue for state and federal governments, who no matter how much revenue they already have, always seem to need more, instead of living within their means, as hard-working families have to do.

As we’ve stated in previous articles, and we can’t state it enough, a Wealth Tax, or “Savings Penalty Tax,” fundamentally changes the rules of American business. It penalizes prosperity, puts a levy on success, and hits the family business every year.

Even in an economic downturn, a family business that loses money will need to pay the Wealth Tax based on its assets.

One example goes like this: if a family owns a factory with $50 million in assets, whether it’s heavy machinery, land, or inventory, it might owe $1 to $2.5 million in Wealth Taxes every year. On top of that, it will also have to pay state and federal income taxes on whatever profit it generates. This means that a family with $50 million in assets would need to generate about $1.7 to $4.5 million in profit annually, JUST TO PAY TAXES.

To manage this tax burden, families have few options, none of which are appealing: reduce spending on long-term investments in their employees and communities (like benefits and charitable contributions) or sell some or all their business to generate liquidity.

In the end, the family loses control of their business, ownership for the next generation evaporates and the communities in which it operates suffer.

Our country is facing real economic challenges that need to be addressed holistically, including its revenue and spending. But implementing economically unsound policies that damage our country’s strongest economic engine and are the heart of the social fabric of communities is not the best path forward.

Taxing income three times is a sure road to economic disaster.

“Price of Prosperity” – Next Congressional Family Business Caucus

The final Congressional Family Business Caucus meeting of this 119th Congress is right around the corner.

The September 23 Capitol Hill event has the theme: “The Price of Prosperity: Family Business Strategies for Battling Wealth Taxes.”

The bipartisan Caucus, co-chaired by Rep. Lou Correa (D-CA) and Rep. Claudia Tenney (R-NY), will feature Dr. Frank Luntz, EY’s Dianne Mehany, legislative experts from Brownstein, and a panel of family-owned business leaders sharing strategies on maintaining businesses growth, tax concerns, and solutions for passing their businesses on to the next generation.

The total number of House Members signed on to the Caucus now totals 50, comprised of 22 Democrats and 28 Republicans.

During the meeting several House Members are expected to present their views on family-owned business challenges, laws impacting them, and insights on potentially damaging wealth taxes.

The meeting starts at 8:30AM and ends at 12:30PM and is followed by a series of meetings with House Members in their offices.

The theme “The Price of Prosperity” is an apt topic for this final Caucus meeting as voters and our lawmakers weigh in on wealth taxes in coming elections and they learn about the unique challenges America’s family-owned businesses face in this challenging economy.

Family Enterprise USA Action engages with legislators on Capitol Hill on behalf of family offices, hardworking families, and family-owned businesses. It is focused exclusively on the critical tax and economic policies that impact them. Since 1995, FEUSA Action has been the leading advocacy group working daily in Washington, D.C., to reduce and eliminate estate tax, gift tax, and generation skipping transfer tax while blocking increased income and capital gains taxes, the creation of a wealth tax, and other hostile policies that punish hardworking taxpayers and success in the U.S. It is a bipartisan 501.c4 organization.