Estate
Tax Primer
After
spending a lifetime turning an idea into an enterprise, the entrepreneur
faces estate taxes that can destroy any family business.
Today, only one-third of businesses survives a transfer to the
next generation.
Only 4% last a generation longer.
- The
estate tax is not effective in redistributing income, the primary
purpose of the tax according to its supporters.
- The
estate tax raises only 1% of federal revenues but requires an
army of white collar government enforcers.
- Small
family businesses spent $33,000 and 167 hours settling estates
(1996 Gallup Poll).
- Effective
tax rates can reach 78% without extensive and expensive estate
planning.
- The
IRS audits 40% of estate tax returns.
- According
to the ABA, there are 16,000 attorneys practicing probate and
estate law.
- There
are 10,000 estate tax cases clogging federal courts.
|
