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The Death Tax is killing American family business
- More than 70% of all family businesses do not survive through the second generation and fully 87% do not make it to a third generation.
- A 1993 study by the National Life of Vermont and the Small Business Council of America found that 77% of failed family businesses that entered bankruptcy went bankrupt after the unexpected death of the founder.
- Among a survey of black owner enterprises, nearly one-third say their heirs will have to sell the business to pay the Death Tax and more than 80% report they do not have sufficient assets to pay the Death Tax.
- Even if the family business owner prepares well for death taxes, the costs are staggering. Often, capital must be redirected from expanding operations to insurance costs, legal fees, deposits to special savings accounts, and trustee costs.
- Of the National Federation of Independent Business members, 61% say that the payment of death taxes will limit their business growth, while another 13% say that growth will be impossible.
- Nearly 60% of business owners report that they would add more jobs over the coming year if death taxes were eliminated.
- A repeal of death taxes should lead to considerable revenue growth. Firms expect that a repeal of death taxes would induce them to invest in their businesses in ways that would enable revenue to grow five percent faster. ("Family Business: The effect of Estate Taxes." Gallup Poll. September 1995)
- Read true, live Death Tax horror Stories happening to families in this country.
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