Longtime Association of Washington Business (AWB) member Don Root has been a leader in eliminating the state and federal estate taxes--appropriately named "Death Tax."
Don and his family built a thriving business in Seattle making the nameplates we see on many of our everyday products from appliances to machinery and autos. Don wants to turn over his business to his four sons, Greg, Brad, Jack and Jeff, but like most family-owned businesses there is a killer storm always lurking on the horizon--the death tax.
Washington's state Supreme Court tossed out our state's death tax only to have the Governor and legislature re-enacted it within a year. That year was 2005. Congress passed legislation and started phasing down the federal estate tax and by 2011 it would be eliminated; HOWEVER, if Congress and the new President take no action, it will automatically be FULLY reinstated immediately.
The death tax has not been an issue in our governor's race and the Presidential race yet until John McCain surfaced the issue at a July 7 Denver Town Hall meeting. McCain, while opposing the total elimination of the estate tax, proposes to reinstate it at the 15% level. Barack Obama counters with a whopping 45% rate. And, while Don Root would rather have no estate tax, 15% is more in line with what family business owners can tolerate.
In a press release, which largely went unnoticed, Don Root wrote:
"Some may think this is a tax that just a few wealthy people will pay, so it does not matter what the percentage is. This thinking is far from reality. That wealth is creating more than 50% of the jobs in this country and most of the job growth in the country. Largely that wealth is in family and privately-owned business and farms. It is not in diamonds, gold, private jets, fancy island estates and high interest paying bonds. It is in equipment, machinery, inventory, factories, stores and buildings that provide jobs--jobs that have the highest probably of staying in the U.S."
So true, Don. But you forgot to mention that every year, family-owned businesses in the United States pays hundreds of billions in taxes to federal, state and local governments. You are already paying your fair share!
Don C. Brunell, President (DonB@awb.org)
