Family Enterprise USA would be OK with a change in the basis rules, said Soldano, the former owner of a multi-family office firm who now runs the nonprofit’s operations.
Repealing the estate tax but keeping the current basis rules “doesn’t seem quite fair and costs a lot of money,” she said. The group favors a compromise that would end the estate tax and the stepped-up basis allowance—except for smaller estates that aren’t subject to the estate tax now.
Richardson says ending the tax would help preserve family businesses—which he said can operate more thoughtfully than their publicly traded competitors. For example, White Castle has long offered retirement benefits, profit sharing, and health insurance to its employees, who repay the company with “incredible loyalty,” he said. “We believe there’s a unique benefit that family business models provide.”
This article was provided by Bloomberg News.