Business Law News Headlines

Manzullo Votes to Protect Small Family Businesses

(WASHINGTON) House Small Business Committee Chairman Don Manzullo (R-IL) will vote today to protect small family businesses and family farmers from the job-killing death tax that has destroyed the livelihoods and futures of many American entrepreneurs and their families. The House is scheduled to consider the Permanent Estate Tax Relief Act of 2006 (HR 5638) later this afternoon.

HR 5638 would provide permanent relief from the death tax, which gives the government the right to take up to 55 percent of many small businesses and family farms upon the death of the owner. Congress voted in 2001 to phase out the death tax, but a technical rule championed by Senate Democrats forced the relief to sunset in 2010. The full force of the devastating death tax will come back to unfairly punish small family businesses and family farmers in 2011 unless Congress acts to provide permanent relief.

More than 80 percent of small employers must spend costly resources to protect their families from the death tax. Despite serious estate planning efforts, 70 percent of small and family-owned businesses do not survive through the second generation and 87 percent do not make it through the third generation. Nine of every 10 successors whose family business failed within 3 years of the owner's death said death taxes played a major role in their company's demise. Read more at house.gov

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	Did You Know?
	Torts relate to business activities Tort is an area of the law concerned with injuries to people or property that come about because of a breach of a duty imposed by the law rather than by some contractual arrangement between people. Individual torts include trespass, defamation, nuisance, negligence and passing off. Each tort has its own rules.