Estate taxes, life insurance, and small business

• 成果类型: Article
• 署名作者: Holtz-Eakin, D; Phillips, JWR; Rosen, HS
• 署名单位: Syracuse University; University of Pennsylvania; Princeton University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465301750160036
• 发表日期: 2001-02
• 页码: 52-63
• 关键词: wealth

摘要

Critics argue that the estate tax prevents the owners of family businesses from passing their enterprises to heirs because it is difficult to pay estate taxes without liquidating the business. Why don't owners purchase enough life insurance to meet their estate tax liabilities? We examine whether and how people use life insurance to deaf with the estate tax. We find that, ceteris paribus, business owners purchase more life insurance than do other individuals. However, on the margin, their insurance purchases are less responsive to estate tax considerations, and: they are less likely to have the wherewithal to meet estate tax liabilities out of liquid assets plus insurance.