The Family Business Estate Tax Coalition (FBETC), which includes more than 40 member associations including the American Rental Association (ARA), recently sent letters to the leadership in the U.S. Senate and House of Representatives urging them to quickly pass estate tax reform. To read the letter to the leadership of the Senate, click here.

While the members of the FBETC have always been in favor of a full repeal of the estate tax, they realize that is probably not currently possible and are seeking an exemption level of $5 million and a maximum rate of 35 percent. The group is concerned that if the issue loses momentum, the current law will be allowed to expire and it will go back to the 2000 law, which has an exemption of $1 million and a maximum rate of 55 percent.

The FBETC, in its letters to Congress, maintains that it also is imperative that any permanent relief related to the exemption is indexed to inflation, provides for spousal transfer and includes stepped-up basis. The group says estate tax reform that includes these important components is critical for businesses and family farms that are struggling to create much needed jobs and expand their businesses and that the significant costs to plan for the estate tax reduces investment in business growth and job creation, and is only made worse by the current uncertainty surrounding the tax.

To read about the ARA's position on estate taxes, click here.