March 22, 2001

Washington, D.C.- At a Capitol Hill press conference today, a leading small business advocacy organization noted that more women and minorities will increasingly carry the burden of death taxes as these first generation business owners attempt to keep businesses in the family. Small Business Survival Committee (SBSC) Chairman Karen Kerrigan argued that the injustice of this economic struggle is at the heart of why a large majority of Americans -- regardless of income, political affiliation, gender, education and religion -- support repealing the death tax.

"Women and minority owned businesses are on the rise, and that's good news for the economy. It also means that more individuals attaining the American dream will be confronted by the death tax. Like many first-generation entrepreneurs, women and minority business owners are discovering that the government will claim as much as 55 percent of the total assets of their businesses upon death. Dreams, hard work and jobs are all on the line," said Kerrigan.

According to a post-election survey conducted for SBSC by the polling company^TM, 62% of voters chose "zero" when asked to specify a fair percentage that should be taxed on assets - regardless of the total amount of assets -- left to an heir when someone dies.  While a handful of ultra-wealthy individuals have publicly declared their opposition to eliminating death taxes, Kerrigan pointed out that voters who make the least in annual income were the most supportive income group of eliminating death taxes. In fact, 68 percent of respondents with incomes below $20,000 to $30,000 stated zero was the appropriate percentage to tax assets upon death.

"Voters are for common sense over so-called ‘sensible wealth' by far. They understand the gross inequities of the death tax. The super-rich who are working to salvage death taxes are out-of-touch and should chat with common business owners," stated Kerrigan in reference George Soros and Warren Buffet and their efforts to keep the death tax intact.  

  Recent data from the U.S. Small Business Administration (SBA) shows that the number of women-owned businesses increased by 87% from 1987 to 1997, with the number of employees working for women-owned businesses rising by 262% over the same period, according to Kerrigan.  In addition, SBA numbers show that recent growth in women-owned businesses has been running well ahead of the overall business growth rates. Likewise, the number of minority-owned businesses is expanding rapidly. The SBA recently noted that from 1987 to 1997, minority firms increased by 168%, with revenues rising by 343% and employment by 362%.

For more information about SBSC and the death tax, please call 202-785-0238, or visit SBSC's website at www.sbsc.org.  SBSC is a nonpartisan, nonprofit small business advocacy group with more than 70,000 members across the nation.