NWRA joined other organizations on a letter to congressional leaders urging support for the continuation of the stepped-up basis provision, which does not impose capital gains taxes when assets transfer ownership upon death of a loved one and business partner. Without the stepped-up basis, these families would face an additional tax burden.
“If the stepped-up basis provision was eliminated, it would force many family-owned businesses to liquidate assets or lay off employees to cover the tax burden,” said NWRA President and CEO Darrell Smith. “Family businesses are job creators and are important members of the community. We urge congressional leaders to support the continuation of the stepped-up basis provisions and stand with family businesses.”
A recent report from EY forecasts that 80,000 jobs would be lost in each of the first 10 years and gross domestic product would decrease by $100 billion over 10 years if stepped-up basis were repealed.