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Whose Property? The Sukup Family Story II
Posted on August 24, 2010
Filed Under Labor, Marriage & Family, The State | 28 Comments
After spending several days with the Sukups, we stayed over on Saturday to join Sheffield’s pancake breakfast, parade, and BBQ. If you’ve never experienced a small town celebration, then you are missing one of America’s sweet traditions.
…and a long line of antique tractors!
It isn’t fancy; there isn’t a lot of glitz; it doesn’t come close to the parades you’ll see on New Year’s Day from the Rose Bowl or Macy’s; the floats are really home-made…but there is something very special about the simple joy a community of people have coming together for food and fun and fellowship.
Eugene and Mary drove their old ’57 Ford Fairlane in the parade as well.
Have you ever been somewhere that you didn’t want to leave?
That’s how I felt visiting the Sukup family and the town of Sheffield, Iowa. And I guess because I’m still an engineer at heart, that’s how I felt walking amid the machinery and creativity found in the family business that Eugene, his sons and now his grandchildren are involved in…and making it prosper. In fact, Eugene told me that the company has really sprouted under the leadership of Charles and Steven.
They are delightful people in a delightful town doing a wonderful business.
So why would the federal government think that it is in the best interest of this country to take over half of it when Eugene and Mary pass on?
The reality is, from several studies, the country actually suffers financially when the inheritance tax reaches into these family businesses and practically destroys them, regardless of the “revenues” that are received.
This is the dark cloud that hangs over the wonderful story of the Sukup family, the employees, and the small towns in the area.
What is it?
Well, the “inheritance”, “estate” or “death tax” as some call it, works basically like this. When a couple dies, the federal government requires that the surviving children count up the dollar value of whatever their parents owned. They then assess a tax on anything over a certain deduction amount.
Now, under the old Bush tax cuts, the deduction had been growing and the tax rates dropping until this year, when the entire inheritance tax was repealed…BUT only for this year. So, in four months, it will return to a rate of 55% and a deduction of one million dollars.
Now, I know what some of you are thinking. “A million dollars! Well, that is just a tax on the rich. Only the wealthy are effected.” Unfortunately, that is misguided thinking.
First of all, we have bought the notion that there is something evil about the “rich” and if one person is rich, then someone else has lost or been taken advantage of. This thinking is propagated by those with devious agendas. Now it is true that some rich people have gotten rich at the expense of others, especially if they are involved in “zero sum” games, like gambling. But if you look at the Sukup business, as most businesses, it has GROWN wealth that many, many people have prospered from as well.
No one has lost in this deal. Everyone has gained.
Secondly, we are misguided if we think this tax only affects the “rich”. If the Sukup sons have to sell the business to pay the taxes, then it will probably only be purchased by a large conglomerate competitor who, odds are, would close the plant and consolidate the work elsewhere. Who is effected? The 500 employees who live in the surrounding small towns and the businesses that couldn’t survive without the Sukup manufacturing plant.
These are the kinds of things that dry up small towns and shift populations to the cities.
Thirdly, there is the underlying ethic of the inheritance tax. Many think it is ‘wrong’ for someone to pass on wealth to their children and that it is ‘right’ to take it from them and “redistribute” that wealth to the citizenry. (By the way, the word “redistribute” is a prejudiced word. It implies that the wealth was originally someone else’s that got taken away and now it needs to be “re” distributed back to them. But, most wealth is created, not stolen.) It is interesting to note, however, that the Scripture uses the word “inheritance” over 200 times and it is always used in a positive way, in some cases almost implying a sacredness associated with it. Obviously, the Scripture often uses this to point us to the eternal inheritance laid up for us in heaven, but there are other passages, such as Prov 13:22 that says “A good man passes on an inheritance to his children’s children…” and Ecclesiastes 7:11 that says “Wisdom, like an inheritance, is a good thing…”.
The only arguments that I have heard in favor of the inheritance tax are basically based upon three beliefs: 1. that it is wrong for people to accumulate wealth and then pass it on; 2. it is an easy way to get money from the rich who owe us a large part of their property because they have exploited us; and 3. the federal government is in huge debt and so we need the money.
None of these pass the true or ethical test from my perspective.
So, here we have the Sukup family, working hard, working together, loving their work, helping many people, employees and farmers, but worried that it all may come to an end when Eugene and Mary pass on.
Some of you may be thinking that there are legal ways around this. I asked Eugene and Charles and Steven this direct question. Steven put it the best, in his Iowa common sense language, which I love: “Well, we’ve looked at everything, and all of it is simply cutting the toenails of the elephant.”
The bottom line is that there is a bunch of money tied up in this business: tons of inventory, steel and sophisticated machinery, bending machines, automatic laser machines, robot welders, etc. some of which are ½ million dollar pieces of equipment.
It doesn’t take very much figuring to realize that the federal government could slap a huge, huge bill upon the Sukup family.
And there really aren’t any good places for that money to come from. Most of the Sukup profits aren’t stored in a vault somewhere. They are plowed back into the business. I noticed an area to the east of the plant that looked like it was being excavated for a new building. When I asked Eugene about it, he said they had decided to create some new products and were going to raise a new building for that work. Then he turned to me with a gleam in his eye and said, “That means we’ll probably be able to add about 20 more jobs!”
Most of the “toenail” solutions involve not plowing those profits back into the business, which creates more jobs, but into insurance companies, lawyers, and other things that end up hurting, not growing, the company.
Well, it may be a dream that the American people will eventually see this as wrong. A large portion of America applauds the estate tax and wants the government to take the Sukup’s property and dismantle the Sukup family’s business. The current mood in Congress is along those lines. A smaller portion thinks it’s just wrong. A majority don’t know about it or don’t care because they don’t think it affects them.
But it does. It affects all of us.
My opinion is that this is one of our most egregious taxes.
I hope you will humor me one more day. I am going to post a little vignette that I wrote on the plane leaving Iowa. It’s a little corny, but I think it communicates the issue. I call it: “The Mugging of Dearly Departed Grandma Betty“. 
And, to the Sukup’s and the wonderful people we met there, I pray the Lord continues to bless you.
Iowa is a neat place!
Comments
28 Responses to “Whose Property? The Sukup Family Story II”
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Comments are moderated and will not appear until they've been approved. While we are eager to facilitate conversation by publishing most comments, we may withhold one from time to time if we deem it to be inappropriate, i.e. offensive, vulgar, overly personal, cynical, disrespectful, irrelevant, redundant or unnecessarily contentious (what a list, huh?). Check it over for spelling and grammar before you submit so that nothing will hinder your eloquence!
Well, apart from the jab at lawyers, I agree completely.
[John, it wasn't a jab at all, just as it wasn't a jab at insurance companies. The sad truth is that any of the small things that can be done require them to divert profits from going back into the business to others that can try to partially mitigate a horrible tax. Two of those "minor solutions" involve insurance companies and legal professionals. That's not a jab at either. Just as it wouldn't be a jab at Costa Rica, for example, if one solution was to move the plant to San Jose. Hope this helps and we are still friends.
Thanks for reading. dt]
Del,
What is the most effective way to fight the reinstatement of the inheritance tax? Are there organizations out there that are effectively campaigning against it? I would like to know so I can join in!!
[Jeff, thanks for even asking the question. I don't know what the Lord would have you do. Pray and if you feel a burden to act, you will find others to walk alongside. They are out there. dt]
Regretfully, the death tax has always been a fear for my family. My family owns a ranch, one that has been in the family for a little over a century now, my dad is supposed to inherit it. Its not large mind you but it is home to all of us. This is also a problem that surrounding farms and ranches will face, and its frightening to realize just how much land would fall into government hands and most likely kill the small towns out there. Its troubling to realize how much it hurts the economy instead of fix it.
[I really do hurt for you. I met a third generation rancher from Texas who had gone to college to prepare himself to take it over from his father. He never got that chance because the inheritance tax took the ranch away. It really doesn't "fall into the government's hands", however. What will happen is that the heirs will have to sell it or the government will sell it and then they take their majority cut of the proceeds. That means it usually goes into the hands of a large corporation and out of the families hands. It not only hurts small towns, but it discourages family businesses. Thanks for writing in. dt]
Del,
Your comment that “A majority don’t know about it or don’t care because they don’t think it affects them,” is really to the point. One probably does not think about this much until it happens to them. When my father died in 2007 after leaving behind a productive business he and my mother began (much like the Sukup family), and then to have the government “steal” nearly half of what they had accumulated simply because they died, makes for a difficult pill to swallow. If I could really tell you how I feel about the politicians and people who maintain such an egregious practice, it would be, quoting your Reply Guidelines: “inappropriate, i.e. offensive, vulgar, overly personal, cynical, disrespectful, irrelevant, redundant or unnecessarily contentious.”
So, I’ll just close by saying that every time I hear of a family, like the Steinbrenner’s, who manage to get around this, I cheer them on. But, more importantly, I am reminded of “an inheritance incorruptible, and undefiled, and that fadeth not away, reserved in heaven for [me].” That is something no government can steal from me.
Thank you for your insights and Godly leadership for the times we are in.
Bill
[Bill, thanks for writing in and I am truly sorry and troubled that your family has lost what should have been passed down as a "good inheritance". This issue really does stir me and it is hard to swallow when we see a citizenry that has grown so greedy that we support the pilfering of a dead man's pockets. Let's pray that the Lord might move in the hearts of our leaders. I agree with you about the inheritance that is laid up for us...it can never be stolen away. dt]
Too bad you didn’t catch a day at the world famous Iowa State Fair! You could have enjoyed every food under the sun that you could possibly imagine (and some things you can’t imagine!), all deep-fat fried and served on a stick! Seriously — guilty pleasures once a year! You would also have seen several booths featuring large posters for the Truth Project manned by volunteers. A million Iowans attend the fair every year — almost half of Iowa’s total population. It is amazing to see and enjoy. Iowans are a great people!
[Janet...now you tell me!
I love state fairs! Sorry I missed it. Also, I am amazed every time I hear something like this about the Truth Project...booths at the Iowa State Fair...who would have guessed? The Lord continues to put His hands upon it and that has nothing, absolutely nothing to do with me. Thanks for writing in. dt]
So sorry to hear about this family that have worked so hard for years to build up a wonderful business and God has indeed blessed them for helping others in their own community. The future with this government dosen’t appear great…Fortunately we have a better future waiting for us that knowone can take away!
[We do have a better future waiting for us, but we are also called to hunger for, and to pursue righteousness, so we continue to speak and act as the Lord leads each of us to bring light into the dark corners of this world (even though sometimes it seems like it is more than just the corners!) Thanks, Ruth. dt]
Dr. Tackett,
I forwarded the Sukup’s story to a Financial Advisor
friend who said what the Sukup’s need is an ILIT. This is an irrevocable life insurance trust that provides liquidity for an estate through a second to die life insurance policy.
They may all ready know about it, but if not, it would help them a ton…
[Gene, thanks for taking the time to pursue this. The Sukups have really looked at everything. The ILIT works for some things, but it still involves purchasing life insurance to try to cover the estate tax. Purchasing such a large, large policy is not only nearly impossible, but the costs to do so would take all of the profits that should be plowed back into the company. When a large estate is involved, there aren't any magic bullets. It's simply an egregious tax. dt]
Out of curiosity, can they not pass on ownership of the company before they die? Why not split ownership of the company between their two sons? If they run the plant already, why not sell it to their sons and then “retire”? If the federal government taxes based on how much the couple owns at their death, why not ensure that they own nothing when they die? They can’t be taxed if they don’t own anything, can they?
[Ah, but the federal government won't let you get away with that. If they "give" it to their sons, then the government will consider that subject to the "gift tax" law which prevents parents from getting around the estate tax by dumping their assets before they die. The same would be said if the sons were to buy it for $1, say. The government would say that they have gifted the difference in the value of the company and the one dollar. The sons would have to come up with the full value of the company to buy it, and we are right back to the original problem of trying to find the money to counter the inheritance tax. Believe me, there is no magic bullet. The tax is onerous. Thanks for writing. dt]
The “Fair Tax” seems to be a reasonable solution to all of this. No estate tax, no death tax, no limits on savings, no Capital Gains tax, no tax on earnings. Basically, you get what’s coming to you, which is all of what you’ve earned.
You pay your taxes when you spend your money your way.
Regarding small businesses: Tax is just another cost of doing business. The costs of doing business get passed on to the purchaser of your product. Take away business tax and you can sell your products more competitively, reducing imports and producing more jobs.
[Agree. I've never understood the reasoning behind taxing business, the economic engine for our economy. That's like taking a couple spark plugs out of your Jeep's enginge as you try to drive up the mountain. dt]
Del,
I appreciate this article. I have just recently learned of the “death tax” and am troubled by it. Your artcile brings home the fact that hard working families are often devastated by this tax. It is a sad situation for many to have to go through.
[Thanks, Brad. dt]
Dear Del….wow…this is absolutely terrible. For quite some time now, I can feel it in the air…the future is NOT going to be the same for us, our sons, and grandsons. If Jesus doesn’t return soon, we face an America that will not be recognizable. So many people went through years without paying attention to what has been happening, not understanding it, and not dealing with it. As two children of divorce, my husband, Tommy and I started out with nothing, not even a college degree. We both worked and saved up for our first home. After I went back to school and got an AS and a better job, we decided that I needed to stay home to raise our family. My husband moved up in the ranks of his trade (industrial coatings) and a few years ago we took the risk of buying into an existing business to start his own division. God has been good, he has been capturing work and has grown from 3 to over 50 employees in just 4 years. Are we rich??? Geeezzz.. our standard of living is just about the same, since we pay on the loan we took and every cent of profit goes back into the business. The big “perk” is getting to go with him on an occassional business trip, for which I’m truly blessed. I still clip coupons, bargain shop, drive a 7-yr.-old car (paid for), do my own nails, and have NEVER spent a day at a spa. We live in a tract house, no pool, boat or “toys” other than bicycles and kayaks. We have no credit card debt because we know better. Our neighbors that work for the gov’t seem to live way above us (they are probably in debt). The coating and lining business is supporting over 40 families now, but..the government will take 1/2 the equipment’s value someday, leaving our sons and employees jobless. Can the government steal….YES it can, and it DOES. We will probably never live like the “rich” people. Funny….business owners are demonized, but what about the FAT CAT politicians?? They don’t have to worry. Their gov’t pensions and perks will keep them going as long as they live, at our expense. We’ve got to stand up, Christians, for what is RIGHT and JUST. Know what is going on and voice your beliefs and use your God-given rights before they are taken away!
[Kathleen, the hard work you and your husband have exerted to build a fine business is of great glory to the Lord. He made us to be creative stewards, working with the raw materials that He has graciously given to us, to prosper them and enlarge them. Planting a seed yields a hundred-fold. So does planting the seeds of an industrial coatings business. Let's do pray for an awakening. dt]
Good piece Del! I grew up on a farm too and have been around Sukup grain equipment but didn’t kmow the cool story! I will pass it on to my farming friends and family.
Our goverment has become a white elephant. Maybe when 51% of our population realises that the other 49% can no longer sustain them (by wealth redistribution) common sense economics will actually make sense to them.
God bless!
[Thanks, Mike. I'm trying to not use the word "redistribution" because it implies it was someone else's in the beginning and therefore it should be returned! Oh, that we as a nation would come to our senses! dt]
Dr. Tackett,
Even in 2010, when the estate tax is in its “one-year lapse” there is fear. My grandmother is in a nursing home after several strokes. She still owns a home and the “catch” to this year’s estate tax lapse is that you take on the basis of the assets from the deceased. She bought her house in the 1960s. So – for purpose of example, if she dies this year, our family’s cost basis in the asset is $60k when the home is worth $240k. We will pay capital gains taxes on the $180k difference when we sell it if she dies this year. That tax rate is 40%! This year’s tax lapse affects everyone – even those who have much less than $1 million.
Our taxation system saddens me. I keep thinking back to the original Boston Tea Party and the point they were making. It’s about giving the individuals the incentive to run their lives – not about funding “big pockets” to run our lives for us.
Many people write about how the younger generations (X and Y) have little loyalty and little work ethic. I don’t disagree – I’m a Gen Xer myself and I’ve worked with enough Gen Y’s to see that this is largely true. But – is the population as a whole considering the causes? If parents don’t stay married – what lasts? If you can work 10+ years in an organization and be loyal just to be let go because you’ve become too expensive (as was seen in the layoffs in recent years) – why be loyal? A report recently came out saying real estate is no longer a viable option for building long-term wealth – one more thing we can’t count on. And, with the endless taxation – what’s left of your efforts (or that of your family) to reinvest? I pray continually for the Lord’s hand in this situation.
[Keely, I wasn't aware that the assets of the deceased don't "step up" this year. That will be tough. One of the many reasons socialism doesn't work is that those who carry more and more of the burden begin to see less and less of a reason to do so. As Margaret Thatcher put it: "Socialism works until you run out of other people's money". dt]
What about life insurance? Couldn’t a couple purchase life insurance to cover these costs with the death benefit once the couple passes on? Isn’t that what life insurance is all about? Just curious.
[Jennifer, thanks for the response. The IRS considers any life insurance as part of the estate and will tax the death benefit at 55% as well (legal shields like the ILIT have their own drawbacks) but the bottom line is this: let's say they needed $20 million to pay the taxes. If that is taxed at 55% then they really need a $42 million policy. Can you imagine trying to get a $42 million policy for an 81 year-old man? Can you imagine the size of the premiums? Even if they could do that, they might end up spending more money on premiums and still not put that money into keeping the business running. They've really looked at everything. dt]
Thanks for the reply, Dr. Tackett.
The situation is ironic for me to read. I live in Canada, and of all the taxes we have, the inheritance tax is not one of them. It was repealed in 1972 by Trudeau, of all people (by far our most notorious Liberal Prime Minister.) It’s one tax the NDP would love to bring back in, but for the obvious problems you have highlighted, it is unlikely they will ever be successful. Small family businesses simply cannot afford it.
Given the downturn the US economy is experiencing, Obama would be wise to repeal this tax. Yes, the government needs money, but the country needs successful small businesses more.
[Ruth, I did not know this! Thanks for some neighborly wisdom from the north. Unless there is some other agenda, not only is this tax wrong, but it just does not make economic sense at all. As we say down here, you hit the nail on the head! dt]
A friend who knows that I think highly of you sent me your article relating to the inheritance tax.
I think that the term “redistribution of wealth” is a perfect example of why we need to be careful that we are not taken captive by presumptive language. The wealth was “earned” not “distributed.” Therefore, it cannot be “re” distributed. In reality, the earned wealth is being stolen by the state and given to other people without justification. Thanks for your insightful analysis and for speaking the truth boldly.
Del, I’m going through the Truth Project for the 5th time. There is so much meat in there that I keep picking up something new each time I watch it. Thank you for your dedication and hard work.
[Ronn, thanks for joining in the awesome work that the Lord is doing through the Truth Project. Let's pray He continues to multiply it and transform hearts and minds. My prayer is that we will see the Body of Christ healthy and strong. We certainly need her to stand. I appreciate your kind words, but I am merely the donkey! BTW...as you pointed out, sometimes presumptive "language" is found simply in presumptive "words". SDG! dt]
Please notify me when The Truth Project comes to Anaheim, CA. I am looking forward to attend. Many young people attending local universities would benefit.
[If you go to the Truth Project website, you will see a schedule of training events. I don't know when anything is scheduled for Anaheim, but if you contact the California Family Council, they can tell you if they are planning to hold one near there. Thanks! dt]
As a widow I am faced with how to manage my assets so that my children will not be forced to “give” away valuable property in order to pay the exorbitant taxes. Thank you for discussing this issue.
I enjoyed reading about your adventures in Iowa. I would like to invite you to expand your experience by enjoying the wonders that North Carolina has to offer. I would be happy to promote a visit to our area!
[Thanks, Susan. NC is dear to my heart. Our first Truth Project training conference was held in Charlotte and we have some wonderful friends there. I visited the "Outer Banks" once and vowed to return. It was awesome. I may take you up on the offer! Regarding the inheritance tax, unless we can come to our senses and repeal this thing, time is one of the biggest friends you have. Get with a good tax attorney and start planning now. Thanks for reading the blog! dt]
People do not realize the effect that the death tax has on family farms. When good farm ground is being sold for $4,000 to $7,500 an acre; it does not take long for a farmer to hit the “rich” status if they own only a couple hundred acres or more just in ground (not to mention farm equipment, grain in storage, livestock, investments, etc).
Now if you happpen to have a farm close to a metro area, like Des Moines, the value of that ground is higher because it appraised at ‘best avaiable use” – regardless of the fact that has been a family farm for 40 years or more. That easily increase the appraised value by at least 3 times the normal ground prices or more. Now your hundred acres at $7,000 becomes valued at $21,000 (or more) – you just jumped from $700,000 to $2.1 million in just land value. How do you come up with over $1 million dollars to pay the feds? If you can sell the farm with in the allotted time frame to pay the taxes, you are lucky. Otherwise, now they tack on interest to your tax liability.
Not only do you get hit with Federal tax, but the state wants their share as well.
It takes a lawyer to figure out how to minimize the tax liability. Even then with gifting (maximium of $13K a year), incorporating, life insurance, and other tax shelter measures – it seems that regularly farm families are not prepared for a death that leaves them holding a huge tax liability.
This tax is killing the family farm and small businesses.
[I agree, Nancy. Trying to raise the awareness with my small part. Thanks for following the blog. dt]
Hi Del!
For some reason there is not a way to leave a reply on your last (mugging) post so I hope it’s ok to do it here since it is related. What are your thoughts about the children’s inheritance if there is only debt and maybe back taxes to inherit?
Thank you for your insights and may God bring His people to our senses!
P.S. Sometime I would love to hear your thoughts on a resolution for the Palestinian/Israeli conflict. Especially the West Bank area….whose land is it?
[Sorry, I'm still trying to figure out how to run this blog on my own! (Somebody help the boy!!) I found the problem and it is now fixed. I wondered why there weren't many comments on that post. Regarding leaving an inheritance "in the red", I've not thought of that. Someone gets left holding the bag. It may seem hard, but my first inclination is that the family has an obligation to try to pay it back. When my dad died, if I knew that he owed anybody money, I would have assumed that debt as my own, if for no other reason than to preserve my dad's reputation. (In fact, there were bills that came in for over a year after his passing.)
What do you think? dt]
I agree that the estate tax raises important questions particularly in regards to fairness. The very rich or well informed can get around the tax while people like the Sukups pay.
But as long as we are raising ethical questions, I’d like to raise a few more. Like, is it fair for this generation to demand more than it is willing to pay for? Is it fair to pass on these debts to our children and grandchildren? Are we just stealing from them? I also find it mildly ironic to talk about redistribution in the context of a farm equipment manufacturer given that farmers are some of the biggest recipients of federal dollars.
[Lyndon, good questions. Also, I have long believed that farm subsidies upset the law of supply and demand as well as raising ethical issues of the forced redistribution of property. dt]
Perhaps some alternative conclusions and analysis are in order. Iowa receives significant federal resources due to field crop subsidy programs. In an economic operational sense, field crops operations are ideally amenable to marketplace solutions originating from Chicago (futures markets developed in early 70s) as opposed those socialized support systems from Washington (also developed in the early 70′s during the Nixon admin). The reader should be able to read between the lines here. The upshot of this point, is that it’s hard to develop some sense of sympathy for the business mentioned above, the estate “death” tax burdens on which, seem apparently unjust. Though what I say is not necessarily an argument, this merely expresses my concern as to where one might apply his or her sympathies and notions of justice.
Concerning the general proposition that the estate tax is unjustly burdensome on owners of businesses, especially those privately “closely” held enterprise, as well as onerous to the efficient and effective operations of such enterprises, this writer does agree, to a limited extent. Perhaps a solution in this regard involves a floating basis deferred tax approach, as determined by the relative illiquidity of such ownership (private ownership versus public ownership might be one factor, as well as ongoing operation and capital maintenance requirements), not just asset value thresholds.
Dale’s blog takes a “hard” stance against estate taxes. Often the debate on this issue only reflects the “hard” stances, pro or con, but keep in mind, there are breakthrough solutions that balance and fully satisfy the positions represented in all positions. One just has to more fully consider dynamic elements such as time, liquidity, fiscal health, societal requirements, societal decency (Gini coefficient) and the like.
There are numerous other considerations that are conveniently ignored in the various discussions above that can easily be brought to bear against the position of the hard anti-estate tax position. One can draw markedly different conclusions in the domains of exposited biblical ethics, economic theory, management theory, and general ethics, while still being a pro free market christian/Christian. Without going into those, I only express the request that a site, such as this, professing to contend for the cause of truth, be more fully engaged with all the considerations of an issue such as this, since to do otherwise is to be unfaithful to a true and honest fight to contend for truth.
[BJ, thanks for commenting, but we will have to disagree here. I don't think I've been "unfaithful to a true and honest fight to contend for the truth" as you stated. I have read a great deal about this debate and I think I understand the reasons offered for it as well as the compromises. However, I don't think that "time, liquidity, fiscal health, societal requirements, societal decency" are the real issues. I believe it is an ethical issue and that the state does not have the right to take a dead man's inheritance...at all. Pragmatically it hurts the economy but I oppose it on ethical grounds, not pragmatic grounds. Even so, even a partial solution, as you are proposing, doesn't make economic sense. Thanks for taking the time to comment. dt]
Very good! Thanks for feedback. Maybe I come at things from the pragmatic side, which is where we differ somewhat. It seemed to me that this issue calls for a utilitarian solution, as opposed to resolution via a Kantian absolute. Furthermore, this issue does not seem to justify as high priority as that of the abortion issue, for instance. Keep in mind that there are well meaning and thoughtful “red letter” evangelical brothers and sisters who also view this issue from a biblical ethical framework, but who might take a different stand on this issue. Note that they might nonetheless agree with the both of us, agreeing that abortion is, absolutely, sinful. Incidentally, there can be believers working from the Brookings institution perspective on various issues. They [believers] all don’t have to tow the line from AEI or Heritage on every issue, but I digress.
Anyway, I actually am more on your side than as might have been suggested by my earlier comments, since I suggest liquidity thresholds (no privately held businesses have estate tax liability), in addition to merely enacting higher dollar asset value thresholds. This may not have been so clear, given my ponderous and compressed content and somewhat disrespectful tone in the discussion yesterday. For this, I apologize.
In the end, I probably come to your side on this. This issue could come up for vote soon, and I come to your side by virtue of next year’s thresholds being too low, and there being no consideration of business liquidity and operation concerns. I perhaps see why your attention is here, rather than a more ethically profound issue, just given the legislative calendar.
All in all, I do find your accounts compelling and worth the consideration of various readers. Finally, I would, encourage, all of us who occasionally interact on sites such as this, to fully consider enrolling in full worldview curriculum programs such as “The Truth Project.” The interaction with others in small discussion groups, prayerfully committed to seeking truth on important issues, is a better approach in confronting the major worldview issues than merely hacking away in a white box, my feeble attempts being no exception. For this, I too, apologize.
God’s grace you and your readers, BJ
[BJ...a delightful and gracious response! Thank you. No apologies necessary. BTW, abortion is a major ethical issue. I have dealt with it in the past and will continue to in the near future. I agree with your call to gather in small groups and join in the discussions on major worldview issues. The Lord continues to bless the Truth Project in this arena and I am overwhelmed by His grace to do so. Soli Deo Gloria! dt]
Would a Dynasty Trust help the Sukup Family avoid this egregious tax?
[John, I believe the problem with any Trust is that they are taxed at even a higher rate that personal or corporate taxes. That is why the recommendations are that people put non-taxable assets into them. So, if the Sukups were to put the business in a Dynasty Trust (which they couldn't because of the gift tax dollar limitation) it would be taxed at a greater rate than it is now. I know they have investigated all possibilities. Thanks for offering the suggestion, though. Blessings! dt]
I am a “Truth Project” graduate. Thank you for this terrific article. As government continues to take our liberties away from us, we need to be reminded of our God endowed Constitutional rights, and the words of Thomas Jefferson:
“To take from one because it is thought that his own industry and that of his father’s has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association – the guarantee to every one of a free exercise of his industry and the fruits acquired by it”
“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them”
“The policy of the American government is to leave their citizens free, neither restraining nor aiding them in their pursuits”
“When the people fear their government, there is tyranny; when the government fears the people, there is liberty”
“The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first”
Robert Thorpe
Author of “Reclaim Liberty: 3-Step Plan for Restoring our Constitutional Government”
[Thanks for the quotes. The citizenry certainly has a different view of the state than the founders! dt]
A suggestion: I believe a “Living Will” can help the Sukup family, or anyone, avoid inheritance taxes and probate. My mom had a Living Will and my mother-in-law also has one. There were no taxes paid out of my mom’s $550,000 trust.
Robert Thorpe
[Robert, thanks for the input. I assume that the value of your mom's estate was below the threshold for inheritance tax to affect her. The Sukup business is well over that threshold. dt]
Great article. I’d like to raise a new discussion point and that is the role of profit and efficiency. I like your view that wealth is primarily created not stolen. And I agree it is wrong to take from those that are successful just because they have more. I would have also agreed if you had said that it benefits society to let those that have the skills to create wealth continue to do so. What I’m not sure about is the moral implications of a large conglomerate purchasing the plant and consolidating the work elsewhere.
The question I want to raise is about value of efficiency and profit. Today publicly traded US companies are driven by quarterly profits. Companies are doing more with less workers. Our doctor visits are shorter and we shop at large grocery stores instead of corner markets. Would we not say that efficiency, just like innovation, organization or creativity, is good if it leads to more profit (benefits to someone) with the same or fewer resources?
[Great questions, Dave. I believe God has called us to be excellent with our creative talents. When we look at His creation, we find it filled with exquisite design and efficiency. If we, too, design a tractor that allows us to plant and harvest 1000 acres instead of 20 with a mule, there are benefits to everyone (including the mule!) The wheat costs less to grow and a loaf of bread becomes more affordable to everyone. A physician can diagnose a problem more quickly and efficiently. I like the fact that I can buy fresh vegetables in Colorado in the middle of the winter. There are a lot of inventions and efficiencies that have made that possible. It seems to me that the main criteria for all of this is that we do it in ways that are true, good and beautiful. Thanks! dt]
I’m wondering what the relationship is between the Jubilee concept of Leviticus 25-27 and the estate tax? I realize this is a complex question that does not have direct correspondence but it seems there may be some principle applications. Thanks.
[Drew, great, great question! Without a lengthy dialogue, let me offer some things to ponder. The land that the Israelites received was a direct "grant" from God to specific tribes and families. He wanted that preserved until Messiah came. Also, the Jubilee was actually the opposite of the estate tax. The Jubilee consolidated back into the hands of the private owner what had been dispersed through debt to others. The estate tax takes from the private owner and, ostensibly, is then dispersed to non-owners (it really isn't "dispered" though...it just goes into the state coffers). Good question! dt]