By Impacto Group
June 1, 2004
Prepared for Patricia Soldano
Overview
“It [death tax] affects everybody. If I shut down my business, it puts 18 families on the street. These families would then become dependent on the government for support, and it would increase the problem—not solve it.”
—Hector J., manufacturing service and engineering contracting, Nev.
- Few respondents expressed awareness and understanding of Federal estate taxes, and those who said they understood the tax implications believe it is a high priority to better educate the Hispanic community.
- Since many respondents were not truly aware of the “death tax” and its economic implications, they expressed surprise and deep frustration in learning about its potential impact on their businesses and families.
- Respondents were more stunned and concerned with the percentage of the “death taxes” (41%- 49%) than with the amount of the lifetime exemption, though many believe the $1M exemption is Nearly half of the respondents expressed that the 49% Federal tax rate was out-of-line or “ridiculous.”
- When asked directly, 20% of Hispanic family business owners said they would sell their business or property early to provide liquidity to pay the [death] tax.
- One third (36%) of respondents believe they can escape “death taxes” by taking their assets out of the country before their death.
- Almost three-quarters (74%) of respondents disagree with the statement: “The ‘death tax’ does not affect me—only the wealthy.”
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