inheritance tax

[Nathan Newman]

Actually, I heard that in the end, the GOP could come up with NO example of
a family farm ANYWHERE being lost because of the inheritance tax.  Which
makes sense, since any struggling farm is usually up to its ears in debt and
never has the equity at death to qualify for inheritance taxes.

Any any farm large enough and tax-free enough to be bequeathed with enough
equity to be taxed can always just take on a mortgage to pay off the IRS.

The same basic principle applies to small businesses, although getting loans
on such can be a bit tougher than on real estate.  But we are talking about
millions in equity being passed on before the tax even kicks in.

The deception is that most people in thinking about the tax hear there was a
$2 million threshhold and they say, heck, most farms or small businesses are
worth that much when they are sold, but given the debt loads on most farms
and small businesses, but a business of farm usually has to be worth many
times that amount to have that much equity value.

Nathan Newman
nathan at newman.org

----- Original Message -----
From: "C. G. Estabrook" <galliher at alexia.lis.uiuc.edu>
To: "lbo-talk" <lbo-talk at lists.panix.com>
Sent: Thursday, April 18, 2002 12:29 AM
Subject: inheritance tax

I'd like bibliography, information, and/or guidance on inheritance tax.
House Resolution 2143 apparently makes permanent the repeal of the estate
tax.  Is it the case that, under the cover of concern for family farmers
and small business owners, a massive windfall for the wealthy has been
engineered? Would it be easy to craft legislation that would protect
family farms and small business owners without paying off the rich?
Thanks.  --CGE