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| Family
businesses generate one-half (49%) of U.S. gross domestic
product. |
Impact of Estate Taxes on Farmers
White
Paper
Estate Taxes and Jobs
While precise economic
costs remain open to debate, the data consistently indicate that estate
taxes cost jobs (see
Table 4):
- Collectively, the 967
family businesses included in this study lost more than 700 jobs when
estate taxes last came due.
- They employ 9,000 fewer
people than they would if estate taxes were eliminated -- this
represents 5.4% job growth that has been prevented by estate
taxes.
- These business owners
also expect that more than 20,000 jobs will be lost when estate taxes
next come due.
- As in the case of
planning costs, nearly seventy percent of responding firms (n = 670) did
not report an estimate of expected future job losses. Many of these
respondents are the same individuals who also did not report an estimate
of their future estate tax liability. This raises the possibility that
the estimate of 20,000 future job losses might greatly understate the
degree of job losses which these 967 firms will experience when estate
taxes come due.
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