In keeping with its longstanding position calling for the permanent repeal of the estate tax, as referred to as the “death tax”, ABL has joined the Family Business Estate Tax Coalition (FBETC).

The FBETC is a grassroots coalition of over 50 national family-owned business organizations dedicated to the full, permanent repeal of the estate tax. For many family-owned businesses to keep operating after the death of the owner, they must plan for the estate tax. Planning costs associated with the estate tax are a drain on business resources, taking money away from day to day operations and business investment.

Under current federal law, property transferred at death is taxed when the value of the property exceeds the estate tax exemption. In 2010, the FBETC supported the estate tax provisions in the Middle Class Tax Relief Act of 2010 that the President signed into law. The current law provides an exemption of $5 million with a top tax rate of 35 percent per spouse, indexed for inflation, for 2011 and 2012.

Should Congress fail to act this year, the top estate tax rate will increase to 55 percent with a $1 million exemption per married couple.

Because permanent repeal of the estate tax may not be achievable in this Congress, the FBETC supports permanently extending current law with a 35 percent top tax rate and $5 million exemption. Such an extension will bring the certainty that businesses need to plan for the future.

For more information about the FBETC, please visit www.estatetaxrelief.org.