Newspaper Association of America
September 18, 2000

1. Ninety percent of family businesses fail shortly after the death of the founder.

2. The estate tax represents less than 2 percent of total federal revenues, while enforcement costs the government 65 cents for every $1 received.

3. Ninety-two percent of Americans feel it is unfair for the government to tax a person's income while it is being earned and then tax it again after death.1

4. Family businesses spend thousands of dollars on insurance premiums, lawyers and accountants for estate tax planning purposes, resources that could be put back into the business.2

5. The tax reduces the stock of capital in the economy by nearly 4 percent.3

6. Estate tax rates in the U.S. are higher than in many other industrialized nations. Rates start at 37 percent and climb to 49 percent.

7. Seventy percent of Americans believe the estate tax is one of the most unfair taxes assessed, more unfair than capital gains taxes, property taxes, income taxes and payroll taxes.4

8. A phase-out of the federal estate tax is supported by more than 50 national business organizations, including such groups as the U.S. Chamber of Commerce, the National Black Chamber of Commerce, U.S. Hispanic Chamber of Commerce, the National Indian Business Association and the National Association of Women Business Owners.

9. Repealing the estate tax would produce significant environmental benefits by removing a powerful economic incentive to develop land and liquidate natural resources.

10. Seventy-three percent of Americans are more likely to vote for their member of Congress if he or she voted to eliminate the estate tax.5

Sources
1. John McLaughlin & Associates on behalf of the Americans Against Unfair Family Taxation (AAUFT)

2. The average minority-owned business spends approximately $28,000 annually on life insurance premiums to prepare for the estate tax and $9,000 on estate tax planning. (A Report on the Impact of the Federal Estate Tax: A Study of Two Industry Groups, Family Enterprise Center, Kennesaw State College)

3. According to the Joint Economic Committee, in this century the estate tax has reduced the stock of capital in the economy by $497 billion, a 3.9 percent reduction (The Economics of the Estate Tax, December 19, 1998)

4. The Luntz Research Companies, National Survey on Taxes and Social Security, 1998-1999

5. the polling company (tm) on behalf of The 60 Plus Association

Published SEP 18, 2000