Estate taxes jeopordize life of family business.

A report of the Joint Economic Committee of the 106th Congress has concluded the estate tax generates costs to taxpayers, the economy and the environment that far exceed any potential benefits it may arguably produce.

The death-tax is a leading cause of dissolution for thousands of family businesses. The principal reason is that death taxes impose large cash demands on firms that generally have limited access to liquid assets. This means the death tax exerts a strongly negative influence on entrepreneurial activity that, infuses the economy with risk-takers and enables families to achieve upward mobility. By breaking up family-run businesses and hindering entry into self-employment, economic efficiency is inhibited and innovation …