The Marine Retailers Association of the Americas signed a letter asking legislators to extend the 2010 estate tax compromise.
As a member of the Family Business Estate Tax Coalition, the MRAA and others who signed the letter asked Speaker of the House John Boehner and House Minority Leader Nancy Pelosi to fully repeal the estate tax — referred to by opponents as the “death tax” — or, at a minimum, to maintain current estate tax policy.
Current policy has an exemption level of $5 million and a maximum rate of 35 percent.
“Congressional action on the estate tax is urgently needed to prevent it from ensnaring thousands of new and unsuspecting family-owned businesses in 2013,” the coalition wrote in the letter.
The estate tax consists of an accounting of everything you own or have certain interests in at the date of death, according to the Internal Revenue Service. A “fair market value” is assigned to the property.
A filing is required for estates with combined gross assets and prior taxable gifts exceeding $5 million for descendants dying in 2010 or later, according to the IRS.
“We believe it is essential that Congress act before the end of the year, or else the progress made on the estate tax will be undone by returning to the pre-2001 level of a $1 million exemption and a 55 percent rate to estates, and eliminating the current policy on spousal transfer,” the letter states. “Such an outcome would have a devastating impact on family-owned businesses and farms.”