Neither profit nor appreciation in value is considered. For this reason, death taxes could force many family-owned businesses to shut down or be sold. The Olivo family kept Perfect Printing in business in Cherry Hill, New Jersey after the death of their father. With hard work, the family increased the company's worth to several million dollars. Now, the younger Olivos fear death taxes will force them to sell the company when their mother dies.
Death taxes are particularly hurtful to capital-intensive businesses.
The Chicago Defender, the flagship newspaper of Sengstacke Enterprises, has been an important voice in the black community for close to 100 years. Granddaughter Myiti Sengstacke was forced to seek out outside investors and contemplate selling the paper in order to pay the heavy tax bill. As the number of businesses owned by African-Americans continues to grow, the damage that death taxes impose on the black community will also rise. Eliminating the 'death tax' will be a great start. Congress just passed legislation to eliminate the death tax, but President Clinton may veto it.