Message-ID: <01BC436F.0E11A700@katzja.slu.edu> Date: Mon, 7 Apr 1997 16:00:25 -0500 From: Jerry Katz <mailto:katzja@SLU.EDU> Subject: FW: RFP From RISEBusiness To: mailto:DEVEL-L@AMERICAN.EDU
CALL FOR PROPOSALS FOR WORKING PAPERS:
Effects of the Federal Estate and Gift Tax on Small and Emerging Companies
The Research Institute for Small & Emerging Business
Deadline: May 1, 1997
The Research Institute for Small & Emerging Business (RISEbusiness) invites you to submit a proposal for a working paper
investigating the effects of the Federal Estate and Gift Tax (FEGT) on small and emerging companies. One or more propos
ls will be selected by the RISEbusiness Research Committee by May 15, 1997 for papers to be completed by August 15, 1997
The final paper(s) will be reviewed for acceptance by the RISEbusiness Research Committee. RISEbusiness will be respo
sible for editing, printing, and distributing the final paper(s).
Background: A permanent fixture of the US federal tax system since 1916, the estate tax was designed to reduce concentra
ions of wealth, fearing such concentrations were socially undesirable. In 1924, the first federal gift tax was enacted,
epealed in 1924, and made permanent in 1932.
In its overhaul of transfer taxes in 1976, the Tax Reform Act attempted to mitigate the effect of estate and gift taxes
y providing some relief to small firms and farms. These reforms were extended by the Economic Recovery Tax Act of 1981
nd, to some extent, by the Tax Reform Act of 1986. FEGT accounts for about 1% of federal revenue annually.
Currently, Congress is considering significant legislation to amend estate taxes. This issue has been given priority by
a number of business advocacy groups, and has been a topic of discussion in every White House Conference on Small Busine
s. As a provider of nonpartisan, non-advocacy research on small and emerging firms, RISEbusiness is seeking research on
this issue.
Scope of Work: Researchers are invited to submit a proposal addressing some or all of the following research questions a
d topics. Proposals may focus on any one, or combination of the topics listed below. In addition, researchers should f
el free to develop proposals defining other relevant questions regarding estate taxes and small and emerging firms.
How many firms actually fail to pass to succeeding generations due to tax burdens?
Is estate tax a disincentive to entrepreneurial activity, and if so, how?
To what extent do liquidity restraints caused by planning or paying estate taxes increase the likelihood of entrepreneu
ial failure?
What is the effect of estate taxes on the aggregate economy?
Is the FEGT's insistence on "breaking up family wealth" progressive or regressive, consistent or inconsistent with appr
priate and feasible public policy?
What is the real cost of the FEGT to business, including those resources allocated to tax avoidance strategies and prep
ration for payment?
What is the likelihood of those resources being reallocated to investment? What would the effect be on job creation, a
d by extension, on tax revenues?
What policy lessons can be learned from countries that have repealed their estate and gift tax laws?
What public policies could be instituted to further mitigate the effects of the FEGT on small and emerging companies?
What would be the effect of repealing the FEGT? Would this cause an increase in state estate taxes?
Schedule: Proposal(s) will be selected by May 15. Completed drafts of working papers are due for review on August 15, 1
97.
Proposals: Proposals should not exceed 3-4 pages. CV(s) from the principal researcher(s) should be included. Proposals
must address:
The question/topic to be examined
The implications for public policy
How the question/topic contributes to and extends the existing literature
The unique qualifications of the researcher(s) to carry out the project
The methodology and data to be used
A brief, line item budget
Awards: The award limit is $20,000. Preference may be given to smaller awards.
Deadline: The deadline for proposals is May 1, 1997. Proposals should be sent to
Regina Tracy, Executive Director
RISEbusiness
722 12th Street, NW
Washington, DC 20005
202.628.8392. (Fax)
Questions to Regina Tracy at 202.628.8382 or mailto:rise@bellatlantic.net