30th June 2011
When you say ‘estate tax’, everybody thinks of Bill Gates, nobody thinks of Bob’s Plumbing or Branson’s Farm.
“The business is your savings, your legacy for your kids,” says Dan Danner of the National Federation of Independent Businesses, the nation’s leading group for small businesses. “In most cases, it’s everything you own.”
But if a family-owned business doesn’t have enough cash on hand to meet the estate tax obligation, heirs are often forced to sell the business in order to raise enough money to satisfy the tax bill.
“In a lot of cases, it means the business gets shut down to be able to pay the estate tax – which we think is a terrible thing,” Danner said.
This is just one of many reasons why the economy isn’t recovering – business owners are just not hiring or expanding their businesses because they don’t know what the government is going to do by way of pissing in their soup. Uncertainty is the enemy, here.