Myths & Public
Perception |
Myth
“The estate tax is voluntary” . .
.
“Our
insurance premiums exceed $300,000 annually. This lowers our profit levels, hence
treasury tax receipts. Further, that $300,000 does nothing to
increase our sales, improve productivity or hire new
employees. As an expanding, growing company, these funds could
be used much more productively to hire employees, train and expand
their skills.”
—James
Antunes, President,
A. J. Antunes &
Co. |
The Luntz Research Companies - National Survey on Taxes
and Social Security - August 1998
Most Americans will never
pay the Death Tax - but 70% still believe it is one of the most
unfair taxes.
"People do not work for inherited income,
so inheritances should be taxed at a higher rate since it is not
earned income." 77%
DO NOT AGREE
"The
estate tax is progressive, and it only affects the wealthiest
Americans. Right now, inheritances of less than $625,000 are
not taxed. Since only wealthy Americans have estates that
high, the death tax should not be reduced." 48% DISAGREED, 44%
AGREED
"Inheritance taxes are an extreme form of taxation. The
tax rate, as high as 55%, is higher than even the highest federal
income tax rate-and that's unfair." 85%
AGREED
Percentage of Americans Who Believe Tax
is UNFAIR |
| Social Security Benefits |
79% |
| Savings Account Interest |
74% |
| Death/Inheritance |
69% |
| Long Distance Phone |
65% |
| Capital Gains |
48% |
| Property |
47% |
| Income |
46% |
| Payroll |
46% |
| Gas |
43% |
| Sales |
37% |
| Alternative Minimum |
30% |
| Cigarette |
28% |
| Alcohol and Beer |
20% |
| |
| |
| Percentage of Americans Who Believe Tax
is FAIR |
| Alcohol and Beer |
76% |
| Cigarette |
69% |
| Sales |
61% |
| Gas |
54% |
| Income |
51% |
| Property |
50% |
| Payroll |
47% |
| Capital Gains |
41% |
| Long Distance Phone |
32% |
| Death/Inheritance |
24% |
| Savings Account Interest |
24% |
| Alternative Minimum |
22% |
| Social Security Benefits |
18% |
|
|
| |
MEMORANDUM
To:
Interested Parties
From: Frank Luntz
Re: The Death Tax &
Gay and Lesbian Americans
Date: April 24,
2001
OVERVIEW
The message to policymakers
from this poll is clear. Gay and lesbian Americans
overwhelmingly think they and their families are discriminated
against by the "death tax," and they want this tax abolished.
Fully 80% of the gays and lesbians in this study voted for Gore in
the 2000 elections, demonstrating that Republicans and Democrats
have found common ground on this issue. Just as they believe
gay families should be subject to the same laws and legal
responsibilities as traditional families, they too should share the
same rights and benefits. Not only are death taxes perceived as
double or triple taxation for gay and lesbian partners and families,
but they are strongly viewed as unfair and
discriminatory.
KEY
CONCLUSIONS
1) Elimination of the estate tax is
a bipartisan issue. While
cutting or eliminating taxes has traditionally been seen as a
Republican issue, 83% of gays and lesbians that support death tax
repeal were 2000 Gore voters. Additionally, these same Gore
voters overwhelmingly support a candidate that calls for the
elimination of death taxes.
Two political
candidates with opposing views on death taxes were described to
respondents. They were then asked whom they would vote for if
that were all they knew about the candidates. Even among self-described gays and lesbians that voted
for Al Gore, the results were overwhelmingly in favor of death tax
abolition.
|
Candidate Smith
Death taxes should be
eliminated. They are unfair because they single out those who
save and invest for no other reason than because they are
successful. Inheritance taxes are an extreme form of double
taxation, and the rate, which can be as high as 55%, is higher than
even the highest federal income tax rates.
Candidate Jones
Inheritance taxes should be
kept. Inheritances of less than $675,000 are not taxed, and
therefore inheritance taxes affect only the richest two or three
percent of Americans. The wealthy are able to take advantage
of tax loopholes to avoid paying their income taxes, and inheritance
taxes restore fairness to the system by making up for some of the
money that is lost.
Now, if
that's all you knew about the two candidates,
which one would you
support? (AMONG GORE VOTERS)
Candidate
Smith 61%
Candidate Jones
30%
Don't
Know
9%
|
2)
The estate tax is discriminatory
and should be repealed. No tax
reform package is easier to explain than the repeal of the death
tax. Gay and lesbian respondents clearly understood it and 72%
of them believe it is "discriminatory." When asked if
they would support a law to eliminate the estate tax, even though
they knew they may not benefit, 82% stated they would.
3) Estate taxes hurt
everyone, not just the wealthy. When asked whether they agreed or disagreed with
various arguments for and against the death tax, several themes
emerged. First, 71% of respondents don't think inheritance
should be taxed at a higher rate just because it wasn't earned
income and 59% do not believe it's progressive. Second, an
overwhelming number of gays and lesbians (81%) polled believe that
the death tax is unfair because of the "extreme" tax rate, and a
similar percentage (77%) oppose the tax because of the potential for
American families to be taxed two or three times.
|
|
GAYS AND LESBIAN DISCUSS THEIR OPINIONS ON
ESTATE TAXES |
| |
| |
Agree |
Disagree |
| "People do not work for inherited income, so
inheritances shoule be taxed at a higher rate since it is not
earned. |
26% |
71% |
| |
|
|
| "The estate tax is progressive, and it only affects the
wealthiest Americans. Right now, inheritances of less
than $675,000 are not taxed. Since only the richest two
or three percent of Americans have estates that high, the
death tax should not be reduced." |
37% |
59% |
| |
|
|
| "Inheritance taxes represent double and triple
taxation. It is unfair for people to pay taxes on their
income, and then more taxes on what they save, and a third
time when they die." |
77% |
20% |
| |
|
|
| "Death taxes are unfair because they single out those
who save and invest for no reason other than the fact that
they became successful and then died." |
65% |
31% | |
4) Make us subject to the same laws but give us the
same benefits. Traditional spouses are exempt from estate
taxes, so why aren't we? The
results here are beyond question. Fully 99% of self-described
gays and lesbians believe they should be subject to the same laws as
traditional married couples, and 98% believe that they should
receive the same benefits as married couples. And 97% believe
that just like traditional married couples, they too should have the
right to pass along their assets to their partner without paying up
to 55% in death taxes. This is as
close to unanimity as any issue or opinion we have ever tested.
METHODOLOGY
Using a nationwide list of likely gays and
lesbians, 600 adults were surveyed by telephone from April 7-11,
2001. The margin of error for this survey is
+/-4%.
|
 |
Summarized below are the results of a
survey of 272 family-owned and operated businesses which are members
of the National Association of Women Business Owners (NAWBO).
The study was sponsored by the Center for the Study of
Taxation. It evaluates the experience of these businesses with
the Federal Estate Tax and assesses their expectations about how it
will affect their businesses, and the people they employ, over the
next five years.
KEY
FINDINGS
In the
past five years, family-owned and operated member businesses of
NAWBO report that expenditures associated with the Federal Estate
Tax have been high.
|
 Three out ot four have incurred expenses
related to Federal Estate Tax planning in the five years and average
disbursments for all
related expenses reach
nearly $60,000.
|
Life insurance premiums account for the
largest amounts of money spent to date, with average expenditures of
approximately $30,000.
|
Average spending for actual payment of
the Tax is about half that for life insurance premiums, while
internal labor costs and attorney/consultant fees fall below this
level.
|
Further, the loss of jobs in the past five years resulting
from these expenditures has been
substantial.
|
Already, an average of 39 positions have
been lost per
business. Thus, for just the 272 businesses surveyes, the total
number of jobs already list due to the Federal Estate Tax approaches
11,000.
|
In addition, an average of 103 jobs
per
business that companies
could have created over the next five years will not materialize as
a result of Federal Estate Tax planning. Thus for the 272 businesses
completing the survey, the total number of additional jobs lost
surpasses 28,000.
|
In the event of a sudden death of the principal owner or
owners of their company, respondents estimate that the imposition of
the Federal Estate Tax would not only result in job loss but would
also seriously threaten the viability of their
business.
|
Businesses estimate an average loss of
nine existing jobs as well as 16 currently planned new
positions.
|
Roughly half of the businesses surveyed
report that life insurance proceeds would be needed to pay the
Federal Estate Tax.
|
Approximately four in 10 claim
that...
|
| |
|
 the Federal Estate Tax would cause plans
for expansion to be delayed, substantially curtailed, or abandoned
altogether.
|
| |
|
all or part of the business would have
to be sold to meet the Federal Estate Tax
burden. |
Slightly more than one-third of
respondents indicate that their businesses would have to borrow
money to pay the Federal Estate
Tax.
|
CONCLUSIONS
The overall effect of the Federal
Estate Tax on NAWBO businesses have been to burden them with steep
monetary outlays for the planning and payment of the Federal Estate
Tax. Moreover, the Tax has resulted in significant jon losses
and will continue to do so. Further, payment of the Federal
Estate Tax could put the very survival of these businesses at
risk.
Projecting these findings, even on a conservative
basis, to all NAWBO businesses reveals that the overall negative
impact of the Federal Estate Tax is even more
substantial. |
|
