Minority Business Owners on Death Tax Repeal

Those favoring collection of death taxes cavalierly dismiss it as only affecting a small number of very wealthy Virginians. But the "very wealthy" typically can afford high-priced lawyers and accountants to help find legal ways to avoid the tax, or they can - and will - change domicile to any of the 30+ states that will have no death tax. Those hurt by the death tax are small business men and women, family farmers, and those they employ. Here are what a few family business owners have to say about the real-world impact of the death tax:

"The National Black Chamber of Commerce refers to the death tax as the "legacy killer" because that is what it does. It kills the legacy of economic empowerment and independence that can no longer be passed on to oneís son or daughter. The community investment is sucked up to pay for a massive tax that comes due only because the family founder has died. Iíve seen it happen time and time again."

Alford also argued that the death tax hits under-capitalized African American businesses particularly hard.

Harry Alford, President
National Black Chamber of Commerce
New Journal & Guide, March 26, 2004
Read Alford's Op-Ed

"Virginia's estate tax is especially unjust to the first generation of African-American business owners. These individuals often have relatives who have not been so fortunate in accumulating assets and who would directly benefit from being a part of the second generation of a business. In addition, the entire black community suffers when minority- and family-run businesses that provide jobs and services in under-served communities are forced to shut down or retrench in order to pay the estate tax.

"Elimination of the estate tax will help close the wealth gap in our nation. The net worth of an African-American family nationally is significantly less than that of the average white family. Repeal of Virginia's estate tax will help the African-American community grow through investment in minority enterprises, stimulating the economic well-being of that community and allowing more black families to participate fully in the American Dream."

Robert L. Johnson Chairman & CEO of Black Entertainment Television Letter dated March 27, 2003 to General Assembly members Read full text of Johnsonís letter

Full Repeal will help small businesses owners save cost of planning expenses

• Part of the onerous cost of the death tax is planning. Family owned businesses buy expensive insurance policies and under go extensive and expensive planning with estate and trust lawyers, tax attorneys and family planners. For a successful, middle-aged couple planning for the future, what should they say to their high-priced experts? That they will certainly qualify and therefore should not do any planning? After all, they aren't wealthy. But what if their business thrives and succeeds beyond their wildest imagination. Then, without having gone through the expensive planning with high priced experts, they will leave their heirs in a difficult position that this bill is intended to remove -- being forced to lay-off employees, sell off assets and possibly liquidate the estate.

• The Associated Equipment Distributors found that their member companies spend over $16 million a year to fund death tax plans and an additionally have spent over $30 million on lawyers and accountants and other consultants to set up estate plans.

Learn more about how the Death Tax Impacts...

Women Business Owners | Family Farmers | Small Business Owners | Economic Growth and Jobs