SBCA Release on Estate Taxes
WASHINGTON, D.C.--The Small Business Council of America (SBCA) applauds the members of Congress who are in favor of repealing estate taxes for small businesses by permanently extending the current 2009 estate tax this year. Since 2001 small business owners have not been able to plan their estates with any predictability. Just from 2009 to 2011, the amount exempt from estate taxes varies from $3.5 million to $1 million and in one year (2010), the entire estate tax system is repealed! This unpredictability has forced small business owners to divert funds that should have gone into the business to pay for financial planners, lawyers and other advisors to ensure that the small business is able to continue past the owner’s demise. The estate tax system was developed to avoid the problems that occur when a very small elite of the country is able to amass great wealth and pass this wealth down to the next generation; it was not intended to cut in half the estates of working Americans who had built up a family business or a small business based on their own hard work. In order to assist small businesses, it is essential that the current 2009 estate law be made permanent before the end of this year. Small business owners would then be able to plan for the succession of their businesses with certainty without having to continue to spend unnecessary dollars on lawyers, financial advisors and possibly unnecessary insurance premiums as well. Statistics reflect that in 2011, 45,300 estates would no longer be subject to estate tax if the exemption level were retained at the $3.5 million level, leaving only 8,500 estates. If the exemption level were set at $1 million, then 53,800 estates would be subject to tax in 2011. These small estates represent a significant number of small business owners who have significant business assets in their estates. These small estates while the largest group in terms of numbers contribute a small amount in estate taxes while the largest estates in terms of dollars contribute almost 90% of the total revenue generated by the estate tax. The Small Business Council of America (SBCA) is a national nonprofit organization which represents the interests of privately-held and family-owned businesses on federal tax, health care and employee benefit matters. The SBCA, through its members, represents well over 20,000 successful enterprises in retail, manufacturing and service industries, virtually all of which provide health insurance and retirement plans. The SBCA is proud to have many of the country’s leading small business tax, healthcare and employee benefit advisors as members of its Board and Advisory Boards. For Immediate Release November, 6 2009 Contact: Paula Calimafde http://www.sbca.net 301 951 9325 calimafd@paleyrothman.com

SBCA Release on Estate Taxes

WASHINGTON, D.C.--The Small Business Council of America (SBCA) applauds the members of Congress who are in favor of repealing estate taxes for small businesses by permanently extending the current 2009 estate tax this year.

Since 2001 small business owners have not been able to plan their estates with any predictability. Just from 2009 to 2011, the amount exempt from estate taxes varies from $3.5 million to $1 million and in one year (2010), the entire estate tax system is repealed! This unpredictability has forced small business owners to divert funds that should have gone into the business to pay for financial planners, lawyers and other advisors to ensure that the small business is able to continue past the owner’s demise.

The estate tax system was developed to avoid the problems that occur when a very small elite of the country is able to amass great wealth and pass this wealth down to the next generation; it was not intended to cut in half the estates of working Americans who had built up a family business or a small business based on their own hard work.

In order to assist small businesses, it is essential that the current 2009 estate law be made permanent before the end of this year. Small business owners would then be able to plan for the succession of their businesses with certainty without having to continue to spend unnecessary dollars on lawyers, financial advisors and possibly unnecessary insurance premiums as well.

Statistics reflect that in 2011, 45,300 estates would no longer be subject to estate tax if the exemption level were retained at the $3.5 million level, leaving only 8,500 estates. If the exemption level were set at $1 million, then 53,800 estates would be subject to tax in 2011. These small estates represent a significant number of small business owners who have significant business assets in their estates.
These small estates while the largest group in terms of numbers contribute a small amount in estate taxes while the largest estates in terms of dollars contribute almost 90% of the total revenue generated by the estate tax.

The Small Business Council of America (SBCA) is a national nonprofit organization which represents the interests of privately-held and family-owned businesses on federal tax, health care and employee benefit matters. The SBCA, through its members, represents well over 20,000 successful enterprises in retail, manufacturing and service industries, virtually all of which provide health insurance and retirement plans. The SBCA is proud to have many of the country’s leading small business tax, healthcare and employee benefit advisors as members of its Board and Advisory Boards.

For Immediate Release November, 6 2009
Contact: Paula Calimafde
http://www.sbca.net
301 951 9325
calimafd@paleyrothman.com