Read on for two very interesting op-ed pieces written by Harry C. Alford, Jr., President & CEO of the National Black Chamber of Commerce, Inc., and Rhoda Elliott, President of Bill's Barbecue.

Click here for Harry Alford's op-ed or click here for Rhoda Elliott's op-ed.

This so-called death tax is unfair. To date, more than two-thirds of Virginia's elected lawmakers voted to repeal the death tax beginning next year. They were correct to do so. In the African-American community, repeal of the death tax is an important tax reform issue since minority-owned and women-owned businesses tend to be among the hardest hit when the death tax collector comes.

The bipartisan support for repeal of the death tax at the federal level, and in more than 30 states, has been motivated in large part by recognition of this fact. Minority-owned and women-owned businesses are usually already undercapitalized. They provide goods and services to traditionally under-served communities. Think about your neighborhood grocery, dry cleaners, barbershop, auto repair, pharmacy or any other critical service for your family. These are just a few examples of the type of locally owned companies that are threatened by this killing tax.

The National Black Chamber of Commerce refers to the death tax as the "legacy killer" because that it what it does. It kills the legacy of economic empowerment and independence that can no longer be passed on to one's 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. I've seen it happen time and time again.

The death tax is also a job killer. Small businesses are the backbone of Virginia's and America's economy, and the death tax can easily break the back of a small business. When you take thinly capitalized, privately owned businesses that have their assets tied up in real estate or equipment, and you hit their owners with massive one-time death tax bills - after they've paid taxes their whole lives, a host of very bad things happen. Instead of the heirs continuing to run the farm or business, more often that not they are forced to sell it to pay the tax bill.

The result: Businesses that otherwise would grow, don't. Businesses that otherwise could keep their workforce in place, and perhaps hire more employees, can't.

The Chairman and CEO of Black Entertainment Television led a coalition of African-Americans who worked to abolish the federal death tax. He and about 40 other African-American business leaders had this to say in full page newspaper ads they ran in the Washington Post and New York Times on April 4, 2001:

"Unlike most White Americans, many African Americans who accumulated wealth did so facing race discrimination in education, employment, access to capital, and equal access to government resources. In many cases, race discrimination was supported by governmental policies and failure to enforce equal rights laws. It is unfair and unjust for the government through the Estate Tax to seize a portion of the estate of the individuals it failed to provide equal opportunity." (Washington Post, April 4, 2001, page A-4, "African American Business Leaders Call for an End to the Estate Tax")

Repealing the death tax in Virginia will result in a short-term revenue loss of about $70 million annually - less than three-tenths of one percent of the state's general fund. That's a small price to pay to eliminate a tax whose destructive effects ripple through Virginia's economy with a multiplying negative impact on business investment and job creation.

A broad, bipartisan majority in the General Assembly has acted to place Virginia on the side of fairness and economic growth by eliminating the death tax here in the Commonwealth. The legislation now lies with Governor Warner.

My hope is that Governor Warner will look beyond the simplistic revenue issues and consider the fundamental unfairness of the death tax and move Virginia forward to join more than 30 other states in repeal. If not, I urge the General Assembly to remember the need to protect those entrepreneurs - those community investors - who need an opportunity to build and pass on a legacy of economic independence.

And I thank those members, Democrat and Republican, African American and Caucasian, man and woman, who supported repeal of the unfair death tax. Together, you can face down the opposition and know that you are doing the right thing for all Virginians if you stick to principle and remain in support of repeal of the death tax.

Harry C. Alford, Jr.

President & CEO
National Black Chamber of Commerce, Inc.

We almost lost the business once as a result of the death tax when Daddy passed away, if the state continues its current practice of collecting as much as a 16 percent death tax, I don't know how we will do it. My father founded our family restaurant in 1930. We had one store, located in Richmond and everyone in the family pitched in. Over time we grew, opening new stores in Richmond, Henrico, Chesterfield, Goochland and Hanover. Today, our chain of restaurants has grown to 10 and we employ 200 Richmond area residents. Some have been with us for as many as 57 years.

When he passed, we struggled, but succeeded, in keeping the business alive despite years of nightmares with the government over paying the death tax, which at that time was much higher. Still, Virginia's rate of almost 16 percent for some businesses is outrageous, nearly three times the income tax, nearly four times the sales tax and nearly three times the meals tax. And the tax is applied on assets that have already been taxed through local property and business taxes and those same state sales and income taxes.

As a small businesswoman, I know that the death tax effects many more people than some opponents charge. It is not a tax just on the wealthy, it is a tax on hard working, middle-class families like mine, and it is a tax on the 200 employees who work for our restaurants.

While we were fortunate, others are not. Many small business men and women are unable to pass their companies on, and are forced to sell, often breaking up the company and laying off employees to pay the tax. The wealthy are able to pay lawyers and accountants to move their money around, or, in many cases, the wealthy can just move their business to another state like Florida, which does not have the state death tax.

Repealing the death tax, therefore, has little impact on the wealthiest of Virginians. It applies to those companies, like my family's, that have assets tied up in property, equipment and salaries. Until the federal government repealed the death tax it did not make much of a difference. Virginia estates received a dollar-for-dollar reduction in their federal tax bill based on what they owed the state.

But while changes at the federal level reduce, and eventually eliminate, the federal tax, Virginians continue to pay as much as 16 percent. In fact, our actual tax burden has increased over the past two years, and will increase again next year, with the extra tax going to the federal government.

I am told that at least 30 other states have no death tax on the books. Even states with worse fiscal situations than Virginia have decided that the death tax is unfair and that it is poor public policy to grow out of a recession by taxing small business owners and family farmers.

We Can and Should Eliminate the Death Tax This Year

The death tax represents about 3/10 of one percent of the state's budget. But for families grieving a loss and forced to deal with passing on a business, it can represent as much as almost 16 percent of their assets. Delegates Bob Tata and Bob McDonnell of Virginia Beach and Senator Tommy Norment of Williamsburg introduced legislation ending the Virginia death tax in 2004, pushing the fiscal impact for the state beyond our current fiscal situation in state government. Thirty-three of 40 senators and 70 of 100 delegates voted for this bill. Bipartisan support came from among all races, parties, genders and regions of the state.

More than 60 organizations, like the Virginia Hospitality and Travel Industry Association, the National Black Chamber of Commerce, the National Federation of Independent Businesses, the Virginia Roofing Contractors, the Virginia Towing and Recovery Operators Association, the Virginia Auto Recyclers Association, the Virginia Farm Bureau and the Greater Richmond Retail Merchants, joined together to support this legislative effort. Thousands of Virginians are effected by this tax as evidenced by the outpouring of support from middle-class and working-class business organizations.

Abolishing Virginia's death tax in the responsible manner in which HB 2490 and SB 1123 passed will protect middle class family-owned farms and businesses and promote additional investment and job creation. It will also protect women and minority-owned ventures that are often hit hard by this unfair tax. Ridding the state of this unfair tax will attract businesses, assets and jobs from other states where death taxes are imposed, and prevent companies and families -- those who can -- from relocating to other states.

I urge members of the General Assembly who supported repealing the death tax to stand firm against those who would delay this tax relief or play political games with the legislation. I urge them to look to the small business men and women and family farmers in their communities for some guidance on this issue, realizing it is not a tax on the wealthy, but a tax on all Virginians and a tax on our collective prosperity.

Rhoda Elliott is the president of Bill's Barbecue, a Richmond based chain of restaurants founded by her father, W.S. Richardson, Sr., in 1930. She also is past President of the Virginia Hospitality and Travel Association.