Estate Tax
Issue
The masonry industry supports permanent repeal of the federal estate tax. The masonry industry urges the U.S. House of Representatives and Senate to pass a permanent repeal of the estate tax.
Businesses, both large corporations and small family owned businesses, which employ the majority of the American workers, deserve a realistic and reasonable chance of continuing in business after the estates of deceased owners are settled.
The Masonry Industry represents manufacturers of concrete masonry and related materials producers, suppliers and equipment manufacturers, and mason contractors throughout North America. Concrete masonry construction is a significant source of skilled, well-paying jobs. Masonry Industry companies range from small family owned and operated businesses to large companies from every state in the Union. It is with particular sensitivity to our industry’s members that we call attention to the potential for adverse impact, should repeal not be made permanent or a viable exemption be kept in place long-term. Without repeal or stability of the estate tax, continued operations, local employment, community vitality, and quality of life are jeopardized when a current business owner passes away. Without repeal or long term stability, critical assets have to be sold to meet estate tax obligations, and many jobs are lost to the community.
After having endured estate tax parameters changing nine times between 2002 and 2012, the MCAA was pleased that Congress passed permanent estate tax reform in January of 2013 as part of a larger package and that President Obama signed the provisions into law. As you know, H.R. 8 included estate tax reforms that included a $5 Million exemption level permanently indexed to inflation, a 40% top rate (there is a graduated rate schedule below $1 million above the exemption level), spousal transfer or portability, and a stepped-up basis.
Position
While the MCAA still prefers permanent repeal, we also believe that it is imperative that we allow the current estate tax provisions to remain in place so that our small businesses are able to plan for their futures. Unfortunately, the President’s recently released Budget includes changes to the estate tax that was just signed into law. The biggest proposed change is to move the exemption and rate parameters for the estate, gift, and GST tax to 2009 levels, with a $3.5 million exemption and 45% rate. Importantly, the exemption level is NOT indexed to inflation. The MCAA asks that as Congress moves forward on the federal budget and broad based tax reform, that the recently enacted estate tax provisions would remain at their current level indexed for inflation if not repealed outright.
