> inheritance taxes are taxes on illiquid assets
This is why estate planning exists. Any business that actually plans for estate taxes will not have this problem at all.
This is why estate planning exists. Any business that actually plans for estate taxes will not have this problem at all.
There is also no "estate planning" for various other incidents of the same issue, e.g. employees cashing out stock options.
By that argument, all taxation is bad because it diverts funds from other purposes. Yet we must pay for government services. Government is an investment; what you are saying, in effect, is that there are opportunity costs to the investment - a truth of every investment.
If the government took 30% of the shares of the company in lieu of the same amount in cash, the issue would be completely resolved. There would be no reason not to invest in the business - the government takes 30% (or whatever the rate is) of shares regardless.
The problem is that turning illiquid assets into cash costs extra money.