“Eliminating the marriage penalty and cutting all personal income tax rates will benefit consumers and industry alike,” he said. “These cuts will recharge consumer buying power and free up funds for family-owned retailers to invest in growth.” He noted that the majority of family-owned supermarkets pay business income taxes at personal tax rates, not corporate rates. Any cut in personal tax rates benefits these family businesses directly.
“We are especially pleased by the President’s unwavering commitment to repeal the estate tax. This tax forces millions of family businesses to carry a heavy financial burden every year through costly life insurance policies designed to help their heirs pay the estate tax liability without having to liquidate the business.”
“Estate tax repeal will give the U.S. economy a multibillion-dollar stimulus,” Hammonds said, referring to new research conducted for FMI by the CONSAD Research Corporation.
“The billions that the estate tax now takes from family businesses — in planning, insurance and direct tax costs — can be put to productive economic use, creating jobs, benefiting consumers and supporting communities nationwide. This is extremely important because family businesses employ two-thirds of all American workers.”