THURSDAY, JULY 15, 2010
Why Oligarchs Like Estate Taxes
One thing that needs to be understood about oligarchs is that they are accumulators of assets and businesses. If it throws off huge cash flow, they want it. It is not for entertainment value that Warren Buffett in each issue of Berkshire Hathaway's annual report announces that he is looking to buy businesses.
What does this have to do with estate taxes? Many of the great family businesses of all time have been put on the market for oligarchs to swoop up because of estate taxes.
A case in point, that turned out okay, is the recent death of majority New York Yankees owner, George Steinbrenner. Because he died this year, when there is a fluke no active estate tax, the family will be able to hold on to his stake in the Yankees and keep it a family business. If he had died, the year before, or even worse, next year, the estate tax bill would be horrendous, over $500 million. The family would have been forced to sell. Most likely into the hands of an oligarch, maybe even Buffett.
What does this have to do with estate taxes? Many of the great family businesses of all time have been put on the market for oligarchs to swoop up because of estate taxes.
A case in point, that turned out okay, is the recent death of majority New York Yankees owner, George Steinbrenner. Because he died this year, when there is a fluke no active estate tax, the family will be able to hold on to his stake in the Yankees and keep it a family business. If he had died, the year before, or even worse, next year, the estate tax bill would be horrendous, over $500 million. The family would have been forced to sell. Most likely into the hands of an oligarch, maybe even Buffett.
Aucun commentaire:
Enregistrer un commentaire