SBCA Arrows
Small Business Council of America

Small Business Needs Certainty on Estate Taxes and the 1099 Fix Now

Statement by Paula Calimafde, Chair, Small Business Council of America

Dec. 14, 2010


It is vital that small businesses be given certainty with respect to estate taxes. Small businesses need to be given the assurance that the estate tax exemption will not drop below the $3.5 million per person exemption (the 2009 level) after the expiration of the two year extension in the law currently being discussed in Congress. As the Senate bill is presently drafted, in 2013 the estate tax exemption will revert back to the $1 million/55% estate tax rate levels of 2001. This will force small business owners to waste significant time and money with estate planning due to the constant change in the rules in order to try to avoid having their heirs close or sell the business in order to pay the estate tax.  


We favor use of at least a $3.5 million per person estate tax exemption in 2013.  Lack of a permanent solution makes planning impossible for small businesses and their owners.  


To small businesses, which are  the engine of growth in our economy, the difference between a $1 million estate tax exemption and a $3.5 million exemption (or higher)  can represent  the difference between business survival or death.  


Small businesses also need to get relief from the expanded 1099 reporting requirement that goes into effect in 2012. This provision will cause small businesses to waste precious time and resources on an unacceptable level of needless paperwork. This provision should be added to the tax bill currently before Congress.  


The Small Business Council of America is a national nonprofit organization dedicated to supporting legislation that creates important economic incentives and opposes oppressive and burdensome laws for small businesses. The SBCA's focus is exclusively on federal tax, health care and other employee benefit concerns. The SBCA is the voice for 20 million privately owned American businesses and draws on the strength of its highly skilled advisory board of leading small business advisors nationwide to work with Congress, IRS, DOL and other agencies to allow small businesses to prosper.


Paula A. Calimafde
Chair, Small Business Council of America
4800 Hampden Lane 7th Floor
Bethesda, Maryland 20814