In recent years, the estate tax has been phased out, going all the way to zero this year. That helps small businesses because it allows a founder to pass the family business (or farm) along to family members in a will without having to sell off huge chunks to pay the death tax.
A study last year by Douglas Holtz-Eakin and Cameron T. Smith found that permanently repealing the death tax would create 1.5 million jobs. Remember that just last year lawmakers agreed to spend $800 billion for a “stimulus” package that (taking the government’s generous estimates at face value) funded about 750,000 jobs between April and July.
A full death tax repeal would “cost” the government roughly one fifth what it will shell out in stimulus funds and create real, tax-paying jobs. It’s a win-win.
Labor Day was created back in the days when big unions were wealthy and powerful. These days, unions represent only a small (and shrinking) fraction of the workforce. And many of those union jobs (7.9 million) are in government workplaces.
America’s growth, and its future, depends on a healthy private sector and a thriving entrepreneurial spirit. Let’s make sure we don’t smother small businesses -- so essential to creating a future filled with jobs and opportunities -- with excessive taxes and regulations.
Ed Feulner is president of The Heritage Foundation (heritage.org).