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Why small businesses hope Congress will act on the estate tax before it expires at the end of the year
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Good the death -- we have -- death of small businesses a tax deadline is little mainly in the future of many small businesses on the line so.
What are business owner of -- -- from congress script Jenkins hit the ground on Capitol Hill to find out.
Brother for hundreds of thousands of small business owners all across the country there's a dark cloud on the horizon it's called the death tax and if congress doesn't act before the end of the year it can destroy the entire life's work of many of those -- As it stands now the current tax rate.
For the estate tax levied at the time someone's death is at 35%.
With an exemption and everything under five million dollars.
But at midnight December 31 of congress does nothing it will automatically go up to 55%.
In the exemption is -- one million dollars small business senators Kerry and Antonia in Michael Fleischer appeared before the house small business committee to voice their concerns.
This today.
How will the estate tax that's going to get a 55%.
Of -- -- -- -- houses affected.
Cited has affected us already it's not just.
It's such as when that happens my dad for the last ten years has been planning -- trying to figure out how he was gonna.
Move this company to the next generation without -- -- totally dismantled so.
I think the key is that.
With the estate -- since this all encompassing it's your entire state it's not just your business so any savings that you've accumulated.
Any -- for a one K regular savings account any investments.
Your house.
-- all of that gets lumped into that same amount so one million dollars on seems like a lot of money.
It's not that hard to get to nine dollars when you when you consider everything that -- accumulated in my entire life.
When you hear that it's going to 55%.
For everything.
Over a million dollars your reaction.
It shocked because number one again we pay taxes.
Not only income tax and every bit of money we've earned on this investment.
-- we -- state taxes sales taxes over and over again so the little piece of the -- that were left with is what we -- state.
-- have to pay 55%.
Of that when we've worked so hard to to leave something for families.
Is with a big hit.
So.
Your state your business is essentially.
Everything you've got and this is your life's work my in my business is -- -- And -- that currently.
You -- taxes at 35%.
And you can only be exempt if you have a value under five million.
But it.
At midnight December 31 this year it automatically -- up to 55%.
-- exemption is one million dollars unless you guys do so and about it what do you what's going to be done with what can give.
Well this is set up so that is a decision that's likely be made in lame duck that time between the election in and they seating in of the new members of congress -- have been elected.
-- that's a diabolical situation by the way.
The -- diabolical that if we don't do something with this there will be people sitting there at midnight.
With a -- a family member that they love and a hospital better hospice deciding whether or not but that family member on life support.
Based upon the tax decision Uncle Sam won't be there in hospice December 31.
That is cruel and diabolical we must do something.
I'm hopeful -- will be able to eliminate the stamp tax do so forever because -- direct punishment on the American dream cutters and how important is this small business.
And.
-- this death tax and small businesses.
You -- it -- has a great impact on our small businesses have been some small businesses are actually forced to sell.
To pay the debt -- the federal government can come on and take up to 55% of your state.
What's that last survivor passes on we have this deadline December 31 at -- What do you think you guys Hindus should do about well we definitely have to acts.
Because -- certainly.
That is the status quo was not tenable but I also believe that.
It will get done.
We should get rid of the estate tax we held this hearing to show how much -- can impact small businesses you've got small businesses right now too many in this country.
That have to sell the entire business to pay the estate tax that shouldn't.
