There’s always a lot going on in our nation’s capital, but it’s been particularly busy recently. In mid-March, more than 70 family business leaders and others were joined by seven congressional House members at the Congressional Family Business Caucus, hosted by Family Enterprise USA. This was happening while budget talks were stalled, the stock market gyrated and new tariffs were being added — or dropped — daily.
It’s never dull in this town.
Some positive news also emerged from The Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which issued an interim final rule exempting domestic companies from having to report beneficial ownership information under the Corporate Transparency Act (CTA).
This is good news — and a big win — for many family-owned businesses. While it marks a significant departure from the letter of the law, few, if any, businesses would be adversely affected by this change. Of course, FinCEN or Congress can modify the statute to override the rule, but neither of these options seems likely in the foreseeable future, at least for domestic businesses.
The Congressional Family Business Caucus
Back on Capitol Hill, the first of three events set for this year with members of the Congressional Family Business Caucus, took place with a breakfast panel discussion on the topic of women-owned family businesses.
The family-owned business panel featured eight women-owned family business owners, as well as presentations on the latest research from Family Enterprise USA’s (FEUSA) “Annual Family Business Survey,” the “state of play” in politics with legal experts, and new consumer attitude research from communications strategist and pollster Dr. Frank Luntz.
The event, held inside the U.S. Capitol Building complex, drew the largest group of House members to ever address an audience of family business owners.
The seven House members who spoke with or greeted the attendees were Reps. Chuck Fleischmann (R-Tenn.), Carol Miller (R-W.Va.), Mariannette Miller-Meeks (R-Iowa), Stacey Plaskett (D-V.I.), Brad Schneider (D-Ill.), Brad Sherman (D-Calif.) and Rep. Pete Stauber (R-Minn.).
The Congressional Family Business Caucus was formed three years ago and is a bipartisan, educational caucus intended to bring awareness to the issues facing family-owned businesses.
Last year, the caucus was co-chaired by Reps. Jodey Arrington (R-Texas), Brad Schneider (D-Ill.), Claudia Tenney (R-N.Y.) and Henry Cuellar (D-Texas). Last Congress, there were approximately 50 members of the caucus with almost equal representation from Republicans and Democrats. With each new Congress, new co-chairs are selected. We expect they will be announced soon.
The Strength of Women-Owned Family Businesses
The caucus event kicked off with remarks from Debbie McKee, the namesake of Little Debbie’s Cakes, based in Chattanooga, Tenn. She was followed by Kimberly Smith, president of Pipeline Development Company, Strongsville, Ohio; Angela Simmons, owner and manager of ABS Legacy Partners, Hickory, N.C., and Policy and Taxation Group board member Rosana Biondo, president of Mark One, in Kansas City.
Other speakers included Cheryl Osborn, founder of Casco Contractors in Irvine, Calif.; Meghan Hanna, president of Evolve Wellness in Corona, Calif., Bridget Herdman, principal at Herdman Architecture & Design in Corona del Mar, Calif., and Junette McCarthy, founder and owner of McCarthy Wealth in Newport Beach, Calif.
Additional speakers at the event included Ken Monroe, president of Holt of California in Stockton, Calif., and Robert Mancuso, chief executive officer of Capri Capital Partners in Palm Beach, Fla.
It should be noted women-owned businesses represent nearly 40% of all U.S. businesses — more than 14 million businesses in total — and account for $2.7 trillion in revenue, according to Wells Fargo Bank’s 2024 “Impact of Women-Owned Business Report.”
The goal of this first event was to relay to Congress the strength of women-owned family businesses, as well as the challenges they face. It was exciting to see so many House members speak with attendees, and to have them listen to the stories of these women-owned businesses. It’s important members of Congress understand the issues facing all family-owned businesses, and especially women-owned family businesses.
Political State of Play
During the event, Russ Sullivan and Mark Warren, of the law and government relations firm Brownstein, highlighted key individuals in the new administration, while Caren Street and Michael Hawthorne, of Squire Patton Boggs, another top Washington, D.C. law and government relations firm, discussed how best to engage members of Congress on the issues important to family-owned businesses. The key messages they delivered were to be brief and focus on issues relevant to each House member. This is good advice for any family-owned business leader speaking with their representatives.
Attendees were also privy to preliminary research results from FEUSA’s “Annual Survey of Family Businesses,” presented by the FEUSA Director of Engagement John Gugliada.
The early results once again showed family-owned companies tend to outlast most businesses, with 82% of family business respondents operating for 20 years or more, and 33% operating for between 50 and 100 years.
In addition, 90% of family-owned businesses pay their employees either above average or average wages and benefits, with 48% paying above average.
When it comes to the critical tax policies affecting America’s family-owned businesses, the survey found the greatest concern centered on high income taxes, with 47% of respondents noting personal income taxes as their highest priority. This is a 15% increase from last year’s survey.
The second most important issue was the estate tax, also known as the “death tax,” which 14% of the survey respondents noted as their main concern.
High Trust Factor
In another survey commissioned by FEUSA, 1,000 consumers were polled by communications expert Dr. Frank Luntz, and the early results of that research were also unveiled at the event.
The Luntz survey found 91% of respondents believe family-owned businesses are quintessential to the American Dream, with Luntz noting the importance of “the idea that you can start something from nothing and pass it on to the next generation.”
Additionally, the study revealed family-owned businesses are 78% more trusted by consumers than regular corporations are.
The most important finding, according to Luntz, was Americans agree it is “unfair that family-owned businesses pay a higher tax rate than regular corporations.”
When asked this question, 84% agreed with the premise of “family-owned businesses should not have to pay more in taxes than corporations.”
To those who attended this first caucus event for family-owned businesses, one thing became clear: you must engage with your legislative leaders on a personal, one-to-one basis if you want your message heard.
There is nothing stronger than looking your representative in the eye, on their turf and telling them what is important to you as a taxpayer and family-owned business leader in their district.
Members of Congress do listen to constituents.