Tuesday, October 6, 2009

Estate Tax Compromise - Another Attack On Small Businesses

The American Family Busiuness Institute came out swinging yesterday in an e-mail blast opposing the Senate estate tax compromise supported by 46 trade associations in a September 24, 2009 letter. The Senate proposal would permanently extend the estate tax, though at a compromise rate of 35% on the portion of estates over $5 million in value. Unhappy with the collapse of opposition to an estate tax extension by the U. S. Chamber of Commerce, the National Association of Manufacturers, and the National Federation of Independent Businesses, among other major trade groups, AFBI's e-mail says the Institute is "deeply disappointed by the Chamber's and NFIB's decision to abandon small businesses and farms in the name of compromise."

Of course, family owned construction contracting businesses of all sizes are another segment of the economy directly affected by continuance of the estate tax at a confiscatory 35% rate. Ownership succession planning in capital intensive construction businesses is complex enough without having to think about cashing out when the government suddenly wants to take 35% of the value of the company.
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