The ‘Death Tax’ May Kill Family Businesses
“The U.S. House is holding a hearing Thursday on the estate tax, which is scheduled to expire this year if Congress doesn’t step in.”
“Small business advocates say the ‘death tax,’ which is owed to the government when transferring a business after the owner’s death, threatens succession plans in family owned businesses. The current federal estate tax exempts the first $5,000,000 of an estate’s value, and any assets of the estate beyond $5,000,000 are taxed at a top rate of 35%. If Congress does not act by December 31, 2012, the federal estate tax will return to the level it was at in 2000 with a $1,000,000 exemption and a top rate of 55% — which some argue could mean ‘death’ to many family business chains.”
