This is from the national Black Chamber of Commerce
This is a Black Tax
Leonard Harris started Chatham Food Center in Chicago’s South Side in 1983. He wants to leave the business to his sons but can’t because his family will
face an estate tax so huge it will force them to sell off the business jut to pay Uncle Sam. He should know. He started his career as a CPA.
Several years ago, the Chicago Daily Defender, the oldest black-owned daily newspaper in the United States, had to be sold by the Sengstacke family,
which had owned the paper since its founding in 1905, to pay federal estate taxes.
Unfortunately, many of America’s one million black-owned businesses will face a similar fate unless the highly discriminatory tax is repealed. That’s because
most of these businesses are family owned. And it’s the heirs of family-owned businesses – not the super wealthy – who file most estate tax returns.
Supporters of the tax argue that very few families are affected by the tax. But they’re wrong. Between 1995-2005, Congress’s Joint Tax Committee reported
in 2006, estate taxes were paid by more than 37,000 “closely-held businesses,” 24,000 family farms, 50,000 limited-partnerships and nearly 28,000 “other”
It’s not as if the owners of these catering firms, trucking companies, auto dealerships, print shops, retail stores and restaurants haven’t already paid their
share of income, sales and property taxes. They have.
Yet, if they are successful enough, the government will demand even more when they die, taxing everything they own, including the house, car, savings
accounts, retirement accounts, business equipment, inventory, buildings and land. In other words, any business owner who has managed to climb up the
ladder will have his or her family knocked down again. Is that fair? In essence, this is a “Legacy Killer”.