Imagine…Bank of America, Ford Motor Company and McDonalds forced to pay 40% of their value in estate tax every 40 or 50 years. The army of lobbyists that would show up on the steps of the U.S. Capitol. The outrage American people would have at our government collecting such a tax from companies just because enough time has passed.
Of course this headline is not true: Public companies never pay an estate tax. Yet all over America private businesses are required to either pay the estate tax or forced to sell out in anticipation of owing an estate tax, or because of the death of an owner, potentially causing thousands to lose their jobs in the shuffle. That was never the intent of the tax.
Private companies, farms and ranches don’t have an army of lobbyists, because we are too busy building our business to spend time in Washington.
One thing to keep in mind: Wall Street traded- public companies- are rewarded when they shed jobs and drive higher earnings per share. Pick up any newspaper and read about the “savings” achieved by reducing headcount at large corporations.
Where will young people coming out of college work? Many will work in privately held (family owned) companies where they will sharpen their skills and become more valuable to the marketplace. Those are the very businesses in jeopardy each day because of the current estate tax collection method.
In the meantime, a small group of business leaders and agricultural leaders are crafting a better solution to the collection of the estate tax: pay it now, in an orderly way, and save the jobs that provide people a good income.
In the case of the estate tax, the tax is so damaging to private companies and farms that they are forced to pay enormous sums to professional s who help scheme ways to legally avoid the estate tax, or allow their families and employees to face financial ruin.
There will be many that pay millions to groups promising full repeal, and still millions will be spent to preserve it. The fact remains the US has had an estate tax since 1916, with the exception of 2010. It’s not going anywhere. So why not collect it a different way?
By changing the way the tax is collected, we can assure the government takes no risk of a loss of revenue. At the same time, the taxpayer takes no risk in losing the very business that employs their family members and thousands of other employees who rely on a source of income from the private business or farm, and in all likelihood will save money because of the exorbitant tax avoidance costs. At last with the ASSET method, Death is not taxable, we tie paying the tax to an economic event.
Wall Street traded companies like Bank of America, Ford and McDonald’s can continue to avoid the estate tax. But private businesses deserve fairness too. ASSET-Tax.org offers a fiscal solution to a political problem.