Top Insights from Policy and Taxation Group: How Upcoming Tax Changes Could Impact Family Businesses 

Tolleson recently hosted an on-site event with Policy and Taxation Group, an organization dedicated to amplifying the voice of family offices and successful individuals in Washington, D.C. Since 1995, the organization’s efforts have been dedicated to critical tax and economic policies. 

Speakers and family business advocates Pat Soldano, Russ Sullivan, and John Gugliada led a discussion about the current legislative landscape concerning tax and economic policy. During the conversation, attendees were informed that: 

• Family businesses are the heartbeat of the U.S. economy. They constitute 87% of businesses in the U.S. and provide 83 million jobs. 

• The Trump administration, with the energy and enthusiasm of a first term presidency and the experience of a second term one, will likely pass tax legislation in 2025 – though it could happen later in the year than currently suggested. 

• The most important tax issue for family businesses and their owners, also referred to as “successful individuals,” is income tax, followed by estate tax. 

• The Trump administration is proposing a 15% income tax rate for domestic manufacturing companies, but who exactly will qualify for this treatment remains unclear. 

• An extension of the Tax Cuts and Job Acts is expected by the end of 2025, when many of the provisions are set to expire. Some negotiations and adjustments are poised to happen to ensure it passes. In its potential renewal, individual rates and the capital gain brackets will likely be maintained. The estate tax exemption might be adjusted, potentially eliminating the inflation indexing amount.  

• Although the implementation of a wealth tax is not likely with Republicans controlling the House and Senate, there is still significant support for such a tax among Democrats. Despite the discussion of such a tax affecting only billionaires, the reality is that a wealth tax would impact many more people. 

Given the importance of family enterprises to the U.S. economy, changes in tax policy could greatly impact their operations. This event was a valuable opportunity for attendees to gain insights into the current tax landscape and what 2025 holds for tax policy. As Tolleson continues to seek ways to educate, empower, and equip families of wealth, the team remains focused on the mission of providing valuable services and meaningful resources to clients.