Impacts

After a long, grueling several decades working in construction, in 2001, Jimmy decided to invest the money that he and his wife Pat had saved up into buying a small construction company from a friend. Because the business only employed a handful of workers and had very few physical assets on its balance sheet, he was able to purchase it at a bargain of only $150,000. The deal allowed Jimmy to invest the rest of his savings into buying extra equipment and a new office space. Soon after the purchase, Pat, who had retired several years earlier from her job as a clerical worker at a dentist office, took on the responsibility of maintaining the books. The years that followed were some of the best ever for Jimmy and Pat.

Unfortunately, in 2009, Jimmy sensed that his health was on the decline, so he updated his will to pass his ownership in the business his son, Michael, to carry on the business after his death.  Between 2009 and when he subsequently passed in 2011, Jimmy paid taxes on any income he derived from the business. Following his death, ownership was passed to Michael under the terms of the will. Michael, who takes excellent care of his mother, has no plans to sell the business which is now valued at $4.5 million due to the equipment and inventory that Jimmy had accumulated. However, as a result of new tax proposals from President Biden and some in Congress, Michael could face an additional unexpected $1,453,900 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Rachel acquired a small assisted living company in 2000 after struggling to find adequate senior care for her own mother. Having been moderately successful in her previous career, she was able to finance the purchase of a local company for $10 million.  Since then, Rachel expanded the business, opened several new facilities, employed numerous staff and financially sponsored many area non-profit organizations.  Her son James, who worked at the company part-time in high school and during summers, also joined the family business full-time after finishing college. Later, his wife Lisa also joined the company. They are a very visible part of the communities in which they operate.

In 2011, Rachel created a will to pass control of the business down to James and Lisa to carry on the business after her death.  Between 2011 and when she passed in 2021, Rachel paid taxes on any income she derived from the business. When Rachel died in 2021, ownership and control of the business passed to James and Lisa under the terms of the will.  James and Lisa have no plans to sell the business which is now valued at $100 million in view of all the facilities and equipment.  In fact, their daughters Marie and Claire recently started working their part-time the same way James did when he was younger – making them the third generation working in the family business. However, as a result of new tax proposals from President Biden and some in Congress, James and Lisa could face an additional and unexpected $23,175,600 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Frank and Adele were high school sweethearts growing up in their small town located in southwest Georgia. After Frank’s father, Tim, unexpectedly passed away, it became his only son’s responsibility to keep the multi-generational family farm going. Before Frank’s dad took over the operation, his grandfather tended to the same exact fields. So, in 1977, Frank inherited his father’s farm at an appraised book value of $175,000. He knew how to work the land, since he had been doing it his entire life.  Adele, who received her associate degree from the local community college, tended to the books and tracked the farm’s financials. Early on, they decided to take out loans to invest in the farm’s machinery, which was in dire need of repair. Together, they ran a smooth operation and were able to provide for Steve’s widowed mother at the same time. Katie and Steven had five children together, three girls and two boys. Their sons, Patrick and Len, joined the farm as full-time employees when they became adults.

In 2013, Frank created a will that would pass ownership of the business down to Patrick and Len to carry on the business after his death. Between 2013 and when he subsequently passed in 2021, he paid taxes on any income he derived from the business. Following his death, ownership and control of the business were passed to Patrick and Len under the terms of the will.  The two sons take good care of their mother, who still lives in the family’s farmhouse. Patrick and Len have no plans to sell the business which is now valued at $2.75 million thanks to the buildings, equipment, and inventory it has under its umbrella. However, as a result of new tax proposals from President Biden and some in Congress, Patrick and Len could face an additional unexpected $683,550 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Sarah and Joshua met in a college and bonded over their shared love of science and medicine. Upon graduation, Sarah went off to pursue an opportunity overseas with a pharmaceutical company while Joshua stayed in the Atlanta area to do the same. Several years later, when Sarah returned from her voyage, the two rekindled their friendship and went on to get married. After a few years working in the same laboratory together, the two were contacted by an old college professor whose instruction they both really enjoyed. He connected them with an entrepreneur, Jack, who had been pursuing the development of a breakthrough drug for a mild ailment. After many years and trials, Jack had been unsuccessful. Jack wanted to get out of the business, so he was on the search for someone to buy his operation to salvage whatever losses he could. Sarah and Joshua studied at the concept he was aiming for, and after deep thought, decided the price he was selling the business for was too attractive to pass up the opportunity. So, in 1995, they bought Jack’s research laboratory for $1.75 million. In the years after, clinical trials began to show that a breakthrough was within reach.

In 2004, John unexpectedly passed, leaving Sarah with full control of the business. Sarah decided it would be a good idea to create a will that would pass control of the research lab down to her and Joshua’s two daughters after her death. Between 2005 and when she subsequently passed in 2021, Sarah paid taxes on any income she derived from the business. Following her death, ownership and control of the business was passed to the couple’s daughters, who both had careers in the pharmaceutical industry, under the terms of the will.  The daughters have no plans to sell the business which is now valued at $35 million thanks to the intellectual property, equipment, and facilities that it has procured. However, as a result of new tax proposals from President Biden and some in Congress, the daughters could face an additional unexpected $8,397,900 federal tax bill (i.e. the “Zombie” tax) just to carry on the business if these become law:

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Robert and Susan acquired a struggling ranch next to their property in 2001 for $325,000. Growing up, Robert had tended to his family’s own ranch and inherited it after both of his parents passed away. Susan, who grew up a few miles down the road, went off to community college after high school and earned a certification in bookkeeping. Together, they worked hard to run a successful business raising cattle. Soon after their acquisition of the neighboring ranch, the pair streamlined the operation and turned it into a profitable venture. When Robert became sick, their son Len and his family moved back to the area to help Susan run the ranch. Unfortunately, Robert succumbed to his illness and died a short time later

In 2016, Susan updated her will to pass control of the business down to Len to carry it on after her death. Between 2016 and when she subsequently passed in 2021, Susan paid taxes on any income she derived from the business. Following her death, ownership and control of the business passed to Len under the terms of the will.  Len has no plans to sell the business which is now valued at $3.25 million due to its vast land holdings and steady cash flow. Len has three sons of his own that might possibly serve as the fifth generation to own and operate the ranch. However, as a result of new tax proposals from President Biden and some in Congress, Len could face an additional unexpected $835,450 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Ron and Betty used an unexpected windfall of cash to buy a speculative piece of land in 1982 for $950,000. Before the purchase, the pair had never stepped foot in the state of Montana. Nonetheless, they decided to pull the trigger on the purchase after listening to a pitch from their financial advisor. When they finally went to visit for the first time, they never looked back. The pair, who both grew up on family farms in the Midwest, decided to invest all their time and effort into starting their own ranch. While Betty’s family raised poultry and swine, Ron’s only experience in agriculture came from growing crops. They overcame their initial shortcomings to grow their business by acquiring neighboring farms, securing distribution contracts with national beef processors, and investing heavily in machinery to increase the operation’s efficiency. As their son RJ grew older and returned back from college, he became more involved in the business side of the operation. RJ’s entrance into the picture was timely because in 2002, Ron unexpectedly passed away, leaving Betty responsible for running the sizeable ranch.

In 2004, Betty created a will to pass control of the ranch down to RJ to carry it on following her death. Between 2004 and when she subsequently passed in 2021, Betty paid taxes on any income she derived from the business. Following her death, ownership and control of the business was passed to RJ under the terms of the will.  RJ has no plans to sell the business which is now valued at $27,500,000 thanks to the land, equipment and steady cash flow it maintains. RJ has two daughters and two sons of his own, which makes it is more than likely that the ranch will be passed down to a third generation.  However, as a result of new tax proposals from President Biden and some in Congress, RJ could face an additional unexpected $6,653,220 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Carlos and Maria met in college, where they both shared a passion for graphic design. After graduating, the pair moved back to Maria’s hometown and eventually got married. They were both talented, but neither had the business experience to start their own operation, so they went on to work for separate design companies for several years. Carlos’ boss, John, was close to retiring and was looking to sell his business. After deep thought and a lot of prayer, Carlos and Maria decided to offer to buy the business. While they were able to obtain financing from the bank to make the purchase in 1983 for $175,000, they were afraid they greatly overpaid. The two worked tirelessly to grow the business in order to keep up with the payments on their loan. Their hustle began to pay off, as they were able to secure design and production contracts with some of the biggest companies in the area. After two years, the business became profitable. Unfortunately, shortly thereafter, Carlos passed away after a tragic accident.

In 2013, Maria created a will to pass control of the business down to their daughter, Gloria, to carry it on after her death. Between 2013 and when she subsequently passed in 2021, Maria continued to pay taxes on any income that has been derived from the business. Following her death, ownership and control of the business was passed to Gloria under the terms of the will. Gloria, who works as a graphic designer as well, has no plans to sell the business which is now valued at $5 million thanks to its steady cashflow and long-term contracts. Gloria has two daughters of her own that she hopes will one day serve as the third generation to own and operate the business.  However, as a result of new tax proposals from President Biden and some in Congress, Gloria could face an additional unexpected $1,660,050 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Growing up, Lucy was fascinated by space exploration. Despite her difficult upbringing, she worked hard in school and went off to study aerospace engineering at an elite university on the West Coast. Upon graduation, she bounced across the country to work on a series of high-level aerospace and aviation projects. Lucy gained a reputation among her peers as one of the hardest working and most intelligent young professionals in the field. That’s why, when one of her former bosses, Eric, had an idea for a breakthrough feature that would improve the efficiency of commercial aircraft, his first call was to Lucy. After several months of huddling, Eric and Lucy decided to pull their money together, obtain financing from a bank, and secure funding from outside investors to start their business. Lucy’s initial stake in the company was valued at $20 million dollars after the first round of seed funding from venture capitalists in 1989.

In 2012, Lucy updated her will to pass her financial stake in the business down to her niece and nephew after her death. Between 2015 and when she subsequently passed in 2021, Lucy paid taxes on any income she derived from the business. Following her death, ownership of her share of the business were passed to her niece and nephew under the terms of the will. Since the two both work in the company’s upper level management, neither has any plans to sell their shares, which are now valued at $175 million. Both have children of their own that could possibly be the third generation to be involved in the business.  However, as a result of new tax proposals from President Biden and some in Congress, the pair could face an additional unexpected $40,101,600 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Tony and Stephanie acquired a local bakery whose owner was retiring in 2002 for $300,000. Tony worked at a pizza joint and Sharon was a bookkeeper at local doctor’s office when they decided to make the purchase. Their combined talents translated into great success for the bakery which had been a stalwart in the community for over three decades. Tony and Stephanie opened an identical shop in a neighboring town to offer their famous loaves of bread and delectable pastries to a wider base of customers. Soon after, their daughter, Kristen, joined the family business, which freed up Tony and Stephanie to focus on expanding into new locations all across the area. Sadly, Stephanie’s health began to fail and she passed away shortly afterwards.

In 2007, Tony updated his will to pass control of the business down to Kristen to carry on it on after his death. Between 2007 and when he subsequently passed in 2018, Bob paid taxes on any income he derived from the business. Following his death, ownership and control of the business was passed to Kristen under the terms of the will.  Kristen has no plans to sell the business which is now valued at $3.17 million thanks to the facilities, equipment and steady cash flow it maintains. However, as a result of new tax proposals from President Biden and some in Congress, Kristen could face an additional unexpected $813,750 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Larry took a huge risk and left a well-paying, executive level job at a mineral processing company to buy a struggling rival in 1996 for $7.5 million. Larry grew the business to unimaginable heights all while raising his son, Kevin, all by himself following the unexpected death of his wife. The two were inseparable, and once Kevin graduated from business school on the West Coast, he came back to New Hampshire to help his dad run the company. Together they managed a highly profitable business. They invested heavily in new machinery and acquired several struggling mines nearby at steep discounts to expand their operation.

In 2011, Larry created a will to pass control of the business down Kevin to carry it on after his death. Between 2011 and when he subsequently passed in 2021, Larry paid taxes on any income he derived from the business. Following his death, ownership and control of the business was passed to Kevin under the terms of the will.  Kevin has no plans to sell the business which is now valued at $45 million thanks to the mining rights, equipment, and inventory that it maintains. Kevin has one young daughter of his own that might possibly serve as the third generation to own and operate the business.  However, as a result of new tax proposals from President Biden and some in Congress, Kevin could face an additional unexpected $9,504,600 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Cindy took a huge risk and bought the struggling restaurant that she waitressed at with a $500,000 bank loan in 1993. One day, she struck up a conversation with one of her regular patrons, Nick, who she eventually went on to marry. Nick, who was several years older than Cindy, was a known figure in town who had his hands in several different local businesses. With Nick’s help, Cindy turned the business into a money-making machine. In fact, the shop became so successful, that Cindy and Nick decided to open an identical shop in the neighboring town. Little did Cindy know that after a few years, she would expand to have restaurants dotted all over the region. Once it became clear that managing several restaurant locations was too difficult for only two people to do, Nick suggested that Cindy transition her restaurants to the franchise model- which she did.

In 2012, Cindy updated her will to pass control of her business on to her son David to carry it on after her death. Between 2012 and when she subsequently passed in 2021, Cindy paid taxes on any income she derived from the business. Following her death, ownership and control of the business was passed to David under the terms of the will.  David has no plans to sell the business which is now valued at $3.75 million in view of its licensing agreements, equipment, and intellectual property. David has a son of his own that he hopes will serve as the third generation to own and operate the restaurants.  However, as a result of new tax proposals from President Biden and some in Congress, David could face an additional unexpected $976,500 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Carson and Kaylee were high school sweethearts who shared a love for classic cars and barbeque. After college, they both settled down in their hometown and got married. After Carson’s father passed away, Carson was left responsible for both supporting his mother and running the family’s car dealership. Caron’s elderly mother was well taken care of and wanted her son to reap the profits from his hard work running the company. So, in 1985, she sold Carson and Kaylee the car dealership at a deeply discounted price of $1,200,000. Carson was a wizard on the sales floor, and Kaylee, who handled the businesses’ books and operations, had a knack for keeping the rest of the staff motivated. Together, they ran a great operation. Soon enough, they had twin boys, Chris and Russell, who enjoyed chasing each other through the vast parking lots of cars on hot summer days.

In 2006, Carson and Kaylee updated their will to pass control of their business down to Chris and Russell to carry it on after their death. Between 2006 and when they subsequently passed in 2018 and 2021 respectively, Carson and Kaylee paid taxes on any income they derived from the business. Following Kaylee’s death, ownership and control of the business was passed to Chris and Russell under the terms of the will. Neither of the sons have plans to sell the business which is now valued at $25 million thanks to the facilities and inventory that it maintains. While Chris is unmarried, Russell has a daughter and two sons of his own who he hopes will serve as the third generation to own and operate the stores.  However, as a result of new tax proposals from President Biden and some in Congress, Chris and Russell could face an additional unexpected $5,937,120 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Ricky grew up in a trucking family. His father, grandfather, and great grandfather all drove trucks to support their families. Although he eventually wanted to join in on the family tradition, after high school, Ricky went off to community college and received a certification in bookkeeping. Upon graduation, Ricky suggested to his dad that they try to secure financing from the bank to buy their own trucks so that the family could keep more of the money that they made from transporting goods. His dad agreed, so in 1974, Ricky secured a $300,000 loan to buy two brand new semi-trailer trucks for the both of them. That was the very beginning of Ricky’s very own trucking company, which he expanded by purchasing several more trucks and opening new locations across the region.

In 2018, Ricky created a will to pass control of the business down to his son, Tom, to carry it on after his death. Between 2018 and when he subsequently passed in 2021, Ricky paid taxes on any income he derived from the business. Following his death, ownership and control of the business was passed to Tom under the terms of the will. Tom has no plans to sell the business which is now valued at $12.5 million thanks to the fleet of trucks and distribution centers it maintains. Tom has two sons of his own that he hopes will serve as the third generation to own and operate the business.  However, as a result of new tax proposals from President Biden and some in Congress, Tom could face an additional unexpected $2,916,480 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Tim and Karen, a married couple who both received their college degrees in engineering, took a risk by purchasing a struggling manufacturing plant in 1987 for $125,000. Before their big leap of faith, the pair worked together for years in the manufacturing industry to help increase the productivity of the plant’s assembly lines. They worked hard to streamline their new facility’s operations, cut costs, and build out their distribution networks to get their products in the hands of more people. They turned a manufacturing plant that was bleeding cash fast into a profit-making machine. At the same time, they raised their two children, Mary and James, to be strong young kids.

In 2015, Tim and Karen created a will to pass control of the plant down Mary and James to carry it on after their death.  Between 2015 and when they subsequently passed in 2019 and 2021 respectively, the pair paid taxes on any income they derived from the business. Upon their death, ownership and control of the business was be passed to Mary and James under the terms of the will. Neither Mary or James, who both work in the plant’s upper management, have any intention to sell the business which is now valued at $55 million thanks to the equipment and inventory it maintains. Both Mary and James have children of their own that might possibly serve as the third generation to own and operate the stores.  However, as a result of new tax proposals from President Biden and some in Congress, Mary and James could face an additional unexpected $14,029,050 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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Bob and Sharon acquired a struggling local grocery store in 2000 for $275,000.  Bob had been a mid-level manager at a large food distribution company and Sharon was an accountant for a small firm out of state prior to deciding to move back to their hometown.  Together they made a great team and within a year the store turned its first profit.  Later, they acquired another store in a nearby town based on the same focus of quality customer service and local sourcing of fresh produce that attracted locals and visiting tourists. Soon after their daughter Jackie joined the family business after leaving the military, but Sharon unexpectedly died a short time later.

In 2015, Bob then updated his will to pass control of the business down to Jackie to carry on the business after his death.  Between 2015 and when he subsequently passed in 2021, Bob paid taxes on any income he derived from the business. Following his death, ownership and control of the business passed to Jackie under the terms of the will.  Jackie has no plans to sell the business which is now valued at $3.65 million in view of its buildings, equipment, and inventory. Jackie has two daughters of her own that might possibly serve as the third generation to own and operate the stores.  However, as a result of new tax proposals from President Biden and some in Congress, Jackie could face an additional unexpected $1,030,750 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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David, an entrepreneurial gentleman who ran several businesses in the small town he grew up in, acquired a struggling local industrial supply company in 1995 for $275,000. David had experience in both manufacturing and logistics after working in an industrial plant during his summers in college. David invested heavily in new equipment and durable machinery that helped improve the efficiency of his operation. In no time, David turned this cash-bleeding supply company into a major success story. In the meantime, he married the love of his life, Rose, and had a son, Sam.

In 2016, David created a will to pass his ownership in the business to Sam to carry it on after his death. Between 2016 and when he subsequently passed in 2021, David paid taxes on any income he derived from the business. Following his death, ownership and control of the business was passed to Sam under the terms of the will. Sam, who takes excellent care of his elderly mother, has no plans to sell the business which is now valued at $45 million thanks to the buildings, equipment, and inventory it maintains. However, as a result of new tax proposals from President Biden and some in Congress, Sam could face an additional unexpected $11,705,990 federal tax bill (i.e. the “Zombie” tax) just to carry on the family business if these become law:

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