Video: Estate Tax a Killer for Family-owned Businesses – Part 2
Posted December 2nd, 2009 at 11:33am in Entitlements 
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The U.S. House of Representatives will vote this week on a bill that would permanently extend the estate tax (known better as the death tax) at its current rate and exemption level. This extension would prevent the death tax from expiring as scheduled on January 1, 2010. As such it would be a significant tax increase. Before voting to extend the death tax, Congress should consider the devastating impact it has on family-owned businesses.
Grande Harvest Wine, a family-owned wine retailer operating in Grand Central Terminal in New York City, for example, pays tens-of-thousands of dollars each year for life insurance policies. The owner hopes these policies will pay his heirs enough to cover the death tax liability when he dies. Otherwise they could lose the business. As the video below shows, if Grande Harvest didn’t have to pay these expensive premiums it could expand its operations, hire more workers, and pay higher wages:
Continuing the death tax would be a severe blow to Grande Harvest and other family-owned businesses that plan for the possibility of a death tax liability by purchasing expensive life insurance policies. They will continue to pay high premiums that will divert more and more of their precious cash flow away from productive activities – like expanding their businesses and hiring new workers.
Instead of passing a punishing tax increase, now is the time for Congress to repeal the death tax forever. Doing so would lift a tremendous burden from countless family-owned businesses across the U.S. that fear a death tax liability could wipe out their businesses.
Full repeal of the death tax would have an enormous positive effect on the economy in addition to the relief felt by family-owned businesses. It would create millions of new jobs because the death tax is an enormous drag on the economy. It discourages hard work, saving and investing. Lifting impediments to these economy growing activities would put millions of unemployed Americans back to work.
As the debate over the death tax continues, you can view more videos on the tax’s devastating impact on family-owned businesses and read all of the Heritage Foundation’s research on the topic at our new rapid response page at www.heritage.org/deathtax.
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6 Responses to “Video: Estate Tax a Killer for Family-owned Businesses – Part 2”
Linda Carlsbad, CA on December 2nd, 2009 at 11:33am said:
Does Congress ever care about the American people?
All they want to do is tax, tax and more tax! Why are these people in office?
Let’s kick all of them out in 2010!
Tim Az on December 2nd, 2009 at 11:33am said:
This is not a congress that possesses even the slightest degree of compassion for any one other than themselves.
More hope and change anyone?
Ryan The Devil Dog, Wasilla AK on December 2nd, 2009 at 11:33am said:
Unfortunatley, Linda these people are there because “We the People” put them there. I agree that they do not care fro the American Peole, in exchange for their own self preservation. I believe that ids the Moral issue brought upin the video clip.
I would encourage you in your efforts to elect good People to elected office, please test these people with the Constitution before lending support to any Candidate. I find myself looking to run for an office and the task is daunting to defeat any incumbent.
I wish America the best of luck in 2010 elections,
and urge everyone to gaurd your vote, please don’t just go give it to a party affiliation.
Vote for the Best Candidate,that supports the original intent of Founfing Documents.
Pray for those Marines, Sailors, Solidiers, Airmen, And Coasties!!
D,Draco; Groton, CT on December 2nd, 2009 at 11:33am said:
The Democratic congress has the highest percentage of career politicians in any administration ever.
What do they know about an honest day’s work?
Elizabeth on December 2nd, 2009 at 11:33am said:
My mother died on Dec 23, 2005. She owned an 80 acre farm. She was 93 and had taken steps to ensure her kids would be alright. We ended up having to pay $140,000 in estate/death taxes. Had she lived 8 more days, we wouldn’t have had to pay any. We are 2 teachers and a skilled trade person. All of her investments went to pay this stupid tax, plus a some from each of us. MY point is that this is so absurd and unfair. Work all of your life and give it all away when you die. Makes no sense. There should be no estate/death tax at all. Do you think the really rich ever pay this? Not!
Gary Wheat Conway, AR on December 2nd, 2009 at 11:33am said:
The size of my estate is below what would be taxed, but I think
it would be terrible if what I have already paid tax on would
be taxed again before my children received what I had worked for
and saved for them.