Asset and Firewall Protection for your Business and Personal Assets

Asset protection is one of the MOST IMPORTANT THINGS you need to take care of first!

Protecting Asset: If you, like most people, are concerned about the exposure of your hard-earned personal and family assets to potential creditor claims, or other risks, then you should be doing something to learn how to protect them.

Preserving Assets: The threat of being sued for any of the countless reasons must be expected in today’s litigious society, but the dangers to your personal assets can strike from many directions. A catastrophic illness, financial reversal or sudden lawsuits are only some of the numerous reasons that can cause you to lose your home, life savings and other valuable assets.

Building Assets:

On the other hand, will your current estate plan leave what you want, to whom you want? Will your current estate plan take advantage of strategies and tactics designed to help you preserve and transfer your wealth?

Albert Einstein once said, "The significant problems we face cannot be solved at the same level of thinking we were at when we created them." In other words, it takes a new level of thinking—ideas, skills, capabilities, knowledge and wisdom—to solve the problems we face.

Whatever course of action you may take, remember that timely action is the most important ingredient for successful asset protection planning.

Follow the next link to learn more about powerful lawful strategies that can help you preserve the wealth you have so hard to accumulate.

More of our customers are learning about Great Asset Protection.

Do you know what a UBO buksiness is??

Do you know what a "UBO" business is?Unincorporated Business Trust Organization Page 2 of 23 COMMON LAW BUSINESS TRUST ORGANIZATION or, the PURE TRUST INTRODUCTION

If you act on what this booklet tells you, you can save more money than you ever imagined. If you do not act, then there is no other way for you to escape the fate of so many millions of others. Has the following happened to you or someone you know? A friend or relative passed away and his estate was thrown into time-consuming probate -- enormous inheritance taxes, high estate taxes, and large legal fees drastically reducing the estate. Did the Internal Revenue Service rule adversely on stocks, paintings, antiques, or other personal property? Did the family business have to be destroyed in order to pay these hefty costs? Did the heirs have little to inherit after it was all over?

When you pass on, your family may have to go through the same needless waste of money and time. If your total estate can be valued above $600,000, at least 30 and sometimes 50 percent or more of your estate will be taken by taxes, and many thousands of dollars in legal fees and probate costs will usually be taken out on top of the taxes. The financial security you promised your family might be destroyed when you die.

Now there is no need for your family to do without. You can legally avoid every dollar that your family would have paid due to the probate process. You can use a tool that could save you the cost of legal fees, executor and administrative fees, probate costs, inheritance taxes, estate taxes and gift taxes.Since you have accumulated assets throughout your life, it is only right that when you pass on, your family should receive the full benefit -- the full use of those assets. Now they can control those assets intact without a cent of probate or tax costs -- and without a moment's hesitation.

WHAT IS THIS METHOD? A little known and rarely used instrument based on common law called the COMMON LAW CONTRACT, also know as the UNINCORPORATED BUSINESS TRUST ORGANIZATION or the PURE TRUST ORGANIZATION.

HOW DOES IT WORK? You and your family form your own trust organization through properly prepared contracts, trust organization minutes, and a trust organization indenture. Oversimplified, you exchange (not give) your assets with the Pure Trust Organization. The trust organization then owns the assets outright, and manages those assets through its trustees. No gift taxes are paid because no gift was made. You and family members may, under certain limited circumstances, be appointed trustees who manage, control, and direct the desired benefits of the trust organization assets. As you and succeeding trustees pass on, no death taxes or probate costs

Check our asset protection page, we can give you all the training you need directly from Sterling Global Academy.

Unincorporated Business Trust Organization. Page 3 of 23

are incurred on the trust organization assets. The trust organization does not end when you pass away. It ceases only when the trustees decide it should.

CAN ANYONE USE IT? Anyone with large or moderate assets who wants to save money can use it to reduce or avoid probate costs and other legal problems involved in the distribution of an estate after his/her death.

OTHER ADVANTAGES OF THE PURE TRUST ORGANIZATIONThe Pure Trust Organization acts in many ways like an individual -- buying, owning, selling, spending, and earning.It is private. You do not have to register the Pure Trust Organization, its assets, or its functions with any city, state or federal body.

The Pure Trust Organization can be used in place of both business and personal transactions.

The assets of the Pure Trust Organization may not be touched by probate or divorce proceedings or by personal creditors.Why have you not heard of this estate planning tool before now? That question has too many different answers to get a good response in these pages. But there are a number of reasons that might play a role in this information not getting out to those who could use it.

First, you must understand the difference between common law and statutory law. "Common law" is that set of commonly acknowledged rules that everyone should know and obey out of common sense and common decency. It has often been said that common law makes common sense to the common man. Common law has been slowly and informally collected into a set of beliefs that are accepted as the way things should be by most western European people.It is sometimes called English Common Law because the British legal system was built on it. Statutory law is the legal structure created by those who want or need to govern people. Common law is simple; the common man can and will understand it. Statutory law is complex; sometimes only attorneys and legislators can understand it. Common law is based on the belief that there is a God and he has given man certain rights which should not be abrogated by any government. Statutory law is based on a belief that man must be limited if he is to live in association with others. Common law has as its goal maximum individual freedom. Statutory law has as its goal the common good, or that which is expedient, in order to ruffle the fewest feathers and hurt the fewest feelings. Another way of saying it is, Common Law is based on what is right and wrong, and statutory law is based on what is legal and illegal. While common law and statutory law can and should coexist peacefully, they do have at their roots different presuppositions, goals and purposes.

Most trusts are statutory trusts, created by legal edict to restrict or to grant limited license to activities that otherwise would be illegal. The tax breaks and limited liability granted to statutory trusts would be illegal if it were not for the laws that create that kind of trust. A common law trust, or pure trust, is based on the common law principles of property ownership.

Unincorporated Business Trust Organization Page 4 of'23

As a result, liability is limited by common sense in common law ("You can't sue me, the car doesn't belong to me!"). Liability is limited by legal technicalities in statutory law ("You can't sue me, I have been given the license to incorporate! You can only sue the corporation."). Because statutes are constantly changing, and judges tend to change their interpretations of laws over time, most lawyers are totally consumed with statutory law. And their understanding of common law and Constitutional Law is almost totally lacking today.

One reason for this deficiency is that most common law courses taught in the law schools were dropped from the curriculum in the 1920's and 1930's. This fact is very distressing, because our whole law system is based on the English "common law" except for one state (Louisiana). The United States Supreme Court has ruled that common law is just as much a part of the State law as are statutes passed by the state legislatures, and that statutes are often nothing more than declarations of common law. Yet, a considerable number of persons in the legal profession would lead you to believe that the United States Constitution is outdated, and that common law principles are of no importance in this day and age. Since you cannot learn common law principles in most law schools, the only alternative is to study on your own and become self-educated on the subject.

Surprisingly, not many attorneys know that the Pure Trust Organization actually exists, even though there are United States Supreme Court cases, district court cases and others where the "pure trust" form of business organization is specifically mentioned. Several years ago, I was involved in a discussion on the Legal Forum of CompuServe where an attorney told me that he had never heard of an unincorporated business trust organization, or a Pure Trust Organization. Based on the fact that he had never heard of it, he proclaimed to all on the forum that it must be illegal and invalid. How wrong can one be? I have seldom had someone proclaim his ignorance so boldly and aggressively.

"A Trust, for probate avoidance, is a lawful, irrevocable, separate legal entity." Harwood vs. Tracy, 118 MA 631."It is established by legal precedent that pure trusts are Lawful, valid business organizations." Baker vs. Stern, 58 A.I.R. 462

"Trust or trust estates is a legal entity for most all purposes, as are common law trusts." Burnett vs. Smith, S.W. 1007 (1920)It is also surprising how little most lawyers know about other types of trusts or organizations that they are drafting for clients. I have yet to meet one (beyond the handful of lawyers who specialize in pure trusts) who could adequately explain the difference between a common-law contract organization and an inter vivos (living) trust, although I know there must be some that would research the subject (for a fee and enough time).Of course, volumes of information are printed today on the vast subject of estate planning devices, such as establishing and maintaining trusts and organizations. These books deal largely with testamentary and/or living trusts, which have many limitations. Yet these same estate planning experts seldom if ever discuss the Pure Trust Organization, which avoids many of the

Unincorporated Business Trust Organization Page 5 of'23

pitfalls of the more common types of trusts. Pure Trust Organizations are not widely used for they are not widely known, but this tool is seldom challenged in the courts and has rarely been broken by courts of equity. Hence, very little information is in print on how they are established and maintained, and on their official status before the law. Pure Trust Organizations do definitely exist and, in fact, are widely used by those of sufficient knowledge and financial acumen to know how they can be put to far-reaching advantage. It is very difficult to determine who these people are, because one of the main functions of the Pure Trust Organization is to maintain the complete privacy of the financial and legal information of the organization and its activities. The documentation of the Pure Trust Organization is not a matter of public record as are charters of trusts and articles of incorporation.There is another reason why so few of the American people know anything at all about these trust instruments - radical revenue reduction!. Plain and simple, these trusts get in the way of attorneys making money. First, they totally avoid probate, which is one of the most profitable and most sacred of revenue generators for judges and lawyers. Second, they totally avoid federal reporting requirements (no federal forms to file!), which reduce the income made by attorneys and CPA's in their services to businesses. And third, any person with knowledge of these issues can create a business trust - it does not require an attorney like statutory trusts. So, it is possible that some attorneys are hesitant to discuss these options with their clients since that discussion would result in a radical decrease in the revenues they will ultimately receive from those clients. Attorneys and CPA's often make half or more of their fees from providing the services that are not needed by business trusts.We are not suggesting, as many have, that the legal profession is consumed with making money to the exclusion of an honest presentation of options. But, of the legal professionals we have discussed these issues with, most have been aware of business trusts but have never discussed these trusts with clients. Of course, there is always the comment that they are not totally familiar with all the issues concerning business trusts, and therefore they would not feel comfortable discussing these instruments without first knowing more about them. However, not one of the attorneys who have made these comments ever took it upon themselves to learn more about what they already knew would cost them money should it become common knowledge, not even when we offered large amounts of legal research to those attorneys for free.This publication attempts to present some of the issues involved with a business trust, or pure trust. It is simple, general and incomplete. Yet it presents more solid information on this issue than most attorneys or CPAs have seen. In reading this publication, you have become the expert, not your attorney. On the other hand, you would be best served if your attorney or CPA would read this and then do a little research on his/her own. Some will; many will not. You will need to decide what you should do if your tax and estate professional will not take the time to learn this information and become proficient in the legal technicalities of the business trust. The professional who listens, reads and then studies these issues will ultimately have a powerful new estate planning tool to use in providing an essential service to his/her clients. But the good news is, the common man can use the common law to accomplish uncommon estate planning and leave an uncommon estate for his/her heirs. And he/she can do this totally without the use of an attorney. Read on, to your financial health.

Check the asset protection page for more info. There are 18 more pages covering this topic.

CHECK: www.land4salebyowner.org/assetprotection.html

Request the additional 20 pages of this report. IT'S FREE! Just send an email and we will email the balance to you.

What is a person? Do your know?

Check this link to find out... copy and paste.

http://youtu.be/pgA_e-rbCRE

DO NOT CONSENT!

http://youtu.be/Frc6bM1jcUs

DO NOT CONSENT.....

The truth will set you FREE!

“The truth will set you free”

Please watch this fantastic research that will let you understand the power of Sterling Global State Engineering program.

http://www.youtube.com/watch?v=tScuHwVtRcY&feature=player_embedded

Save - 50% off on Identity Protection- Join the advantage it's Free

Join it's Free and Many Savings too!

Great Investment for your Retirement!

In November 2nd, 2006, we made an investment into Stamps. Yes, I said stamps, what did we know about stamp collecting etc. NOT A THING!

We received a booklet from Stanley Gibbons, London England, it explained it to us. We check them out, what do we know about stamp collecting. well, still nothing, but Geoff Anandappa help us out and handled the rest.

We opened our investment account on 11-2-2006 with an initial investment of $10,102.47 British Sterling Pounds. That is approximately 1 1/2 times the amount in US Dollars.

Let’s just use the British Sterling Pounds. Geoff selected some stamps for our collection. We purchased a 10 year contract.

The last evaluation on our stamp collection as of December 20th, 2010 was $15,250.00 British Sterling Pounds. So you can see how your investment works for you. That is a 51% increase in our investment.

Now hows that, even with the very bad markets we have had in the last couple years.

Yes we have different types of assets, some metals, some stocks, coins gold and silver. (The above figures were only for the Stamp Collection). If you plan a little you can reallly increase your retirement fund.

We purchased Tax Lien Certificates a couple years ago which are carrying 16% interest. We have marketed several of them on our website.

If your interested in a Good Stamp Portfolio, contact: www.stanleygibbons.com get a hold of Geoff Anandappa and tell him that Howard and Frank from Jetsource Enterpries suggested that you contact him.

Tell him how much you would like to invest into stamps and he will make you a selection for you own portfolio. You just choose the ones you want an the amount you want to invest.

When you need or want to sell them, he will handle that for you too.

Happy Investing....... www.land4salebyowner.orgland.html

Today, one of the biggest problems is Identity Theft. We at Sterling Global can teach you how to protect yourself!

The word "firewall" used to mean just that: a fireproof wall to prevent the spread of fire. Nowadays, you would never consider using your computer without a "firewall" protection program. It is designed to offer the first line of defense against unauthorized to or from your private network.

Learn how to protect your Personal & Business Assets!Every 30 seconds a new lawsuit if filed.

Law schools are graduating about 100,000 new lawyers each year.

Learn about Alternatives, just complete the contact form and we will contract you with more information.

CORPORATIONS

SOLE PROPRIETORSHIPS

PARTNERSHIPS

LLC

LLLC

There are more viable structures for business that afford more privacy and protection.

Maximize your Business Profits!

You set up your own account on their site. The value changes on a daily basis. With the dollar's value decreasing almost everyday, might not be a bad idea to get yours.

You can also SELL it and have the funds returned to your bank account, should you need the money for some purpose or emergency!

YES you can open an account right on line.

Equifax a global supplier of information solutions, empowers businesses and consumers with information they can trust. Through Equifax we are able to offer online identity verification to residents of the US, UK and Canada, which enables them to open a GoldMoney account entirely online.

Top 30 Hidden FACTS about “America”

Filed under: Uncategorized by atrueott — Leave a comment

January 18, 2011

In order to understand what is REALLY going on covertly, “behind the curtain” inAmerica – one needs to internalize and understand the following 30 basic facts about“The Powers That Be”. (TPTB).

Thirty Little Known Facts about America

1. The IRS is NOT a U.S. Government Agency. It is an Agency of the IMF.

Sources: Diversified Metal Products v IRS et al. CV-93-405E-EJEU.S.D.C.I.Public Law 94-564Senate Report 94-1148, pg 5967Reor ganization Plan #26Public Law 102-391

2. The IMF is an Agency of the U.N. and was organized in 1944 at Bretton Woods, N.H. well before WWII was concluded.

Source: Black’s Law Dictionary 6th Ed. Pg 816

3. The United States has NOT had a Treasury since 1921.

41 Stat. Ch. 214 page 654

4. The U.S. Treasury is now the IMF.Presidential Documents Volume 29 No. 4 page 113

Source: 22 U.S.C. 285-288

5. The U.S. does not have any employees because there is no longer a United States. No more reorganizations. After 200 years of bankruptcy it is finally over.

Source: Executive Order 12803

6. The FCC, CIA, FBI, NSA and all of the other Alphabet Gangs were never part of the U.S. Government, even though the ‘U.S. Government held stock in said ‘Agencies.

Sources: U.S. v. Strang, 254 U.S. 491Lewis v. U.S., 680 F.2d, 1239

7. Social Security Numbers are issued by the UN through the IMF. The application for a SSN is the SS5 form. The Department of the Treasury (IMF) issues the SS5, not the ‘Social Security Administration. The new SS5 forms do not state who publishes them while the old form states they are Department of Treasury.

Source: 20 CFR Chap. 111 Subpart B 422.103 (b)

8. There are NO Judicial Courts in America and there have not been any in America since 1789. Judges do NOT enforce Statutes and Codes. “Executive Administrators” enforce Statutes and Codes. Thus, the “Uniform Commercial Code” is the supreme law of the courts, NOT the U.S. Constitution.

Sources: FRC v. GE, 281 U.S. 464Keller v. Potomac Elec. Co., 261 U.S. 4281 Stat. 138-178

9. There have NOT been any ‘Judges’ in America since 1789.There have only been “Executive Administrators”. (Now you know why “judges” will hold you in “contempt” if you cite the U.S. Constitution in their presence.)

Sources: FRC v. GE, 281 U.S. 464Keller v. Potomac Elec. Co., 261 U.S. 4281 Stat. 138-178

10. According to GATT provisions, you MUST have a Social Security Number.

Source: House Report 103-826

11. New York City is defined in the Federal Regulations as the “United Nations”. Rudolph Guiliani stated on C-Span that “New York City is the Capital of the World”. For once, he told the truth.

Source: 20 CFR Chap. 111 subpart B 422.103 (b) (2) (2)

12. Social Security is NOT insurance nor is it a binding contract. Nor is there a “Trust Fund”.

Source: Helvering v. Davis, 301 U.S. 619Steward Co. v. Davis, 301 U.S. 548

13. Your Social Security check comes directly from the International Monetary Fund (IMF) which is a “for profit corporate agency” of the United Nations. Examine one SSCheck: top-left should be written ‘United States Treasurysee 2-4 above.

14. You actually own NO property. Slaves can’t own property, you see. Read carefully the Deed to the property you think is yours. You are listed as “a TENANT”. Often times the Mortgage Holder or the State is listed as “Seised in demesne as of fee”.

Source: Senate Document 43, 73rd Congress 1st Session

(What is “Seised in demesne as of fee” and what does this Latin Legal term mean? This is the strict technical legal expression used to describe the ownership in “an estate in fee-simple in possession in a corporeal hereditament”. The word “seised” is used to express the “seisin or owner’s possession ofa freehold property”; the phrase ‘in demesne’, or ‘in his demesne’, (in dominico suo) signifies that he’s seised as owner of the land itself, and not merely of the seigniory services; and the concluding words, ‘as of fee, import that he is seised of an estate of inheritance in fee-simple. Where the subject is incorporeal, or the estate expectant on a precedent freehold, the words ‘in his demesne are omitted.

Source: (Co. Litt. 17a; Fleta,1.5, c. 5, 18; Bract. 1.4, tr. 5, c. 2, 2) Brown. “Black’s Law DictionaryFourth Edition, page 1523.

15. The most powerful court in America is NOT the United States Supreme Court, but the Supreme Court of Pennsylvania.

Source: 42 Pa. C.S.A. 502

16. The King of England financially backed both sides of the Revolutionary War.

Source: Treaty of Versailles. Signed July 16, 1782Treaty of Peace 8 Stat. 80

17. You CANNOT use the U.S. Constitution to defend yourself because you are NOT a party to it.

Source: Padelford Fay & Co. v. The Mayor & Alderman of the City of Savannah, 14Georgia 438, 520

18. America is a British Colony. The ‘United States’ is a corporation, not a land mass and it existed before the Revolutionary War and the occupying British Troops did notleave until 1796.

Sources: Respublica v. Sweers, 1 Dallas 43Treaty of Commerce 8 Stat 116Treaty of Peace 8 Stat 80IRS Publication 6209Articles of Association October 20, 1774

19. Britain is owned by the Vatican.

Source: Treaty of 1213

20. The Pope can therefore abolish any law in the United States.

Source: Elements of Ecclesiastical Law Vol. 1, 53-54

21. A 1040 Form is for Tribute paid to Britain.

Source: IRS Publication 6209

22. The Pope claims to own the entire planet through the laws of Conquest and Discovery. (Ever wonder why an Attorney, who is an often unwitting Agent of the Pope through the International Bar Association, wants to do “discovery” with you?)

Source: Papal Bulls of 1495 & 1493

23. The Pope has ordered the genocide and enslavement of Millions of people.

Source: Papal Bulls of 1455 & 1493

24. The Pope’s ‘Laws’ are obligatory on everyone on planet earth.

Source: Bened. XIV., De Syn. Dioec, lib, ix, c. vii., n.4. Prati, 1844Syllabus prop 28, 29, 44

25. We are SLAVES and own ABSOLUTELY NOTHING. Not even what we think are “our children”.

Source: Tillman v. Roberts, 108 So. 62Van Koten v. Van Koten, 154 N.E. 146Senate Document 43, 73rd Congress 1st SessionWynehammer v. People, 13 N.Y. Rep 378, 481

26. Military Dictator George Washington divided up the States (aka Estates) into Districts.

Source: Messages and Papers of the Presidents, Volume 1 page 991828 Dictionary definition of ‘Estate

27. ‘We, The People” does NOT include the General Populace, or what you THINK is ‘We, The People”.

Source: Barron v. Mayor and City Council of Baltimore, 32 U.S. 243

28. It is NOT the ‘duty of the police to protect you. Their job is simply to protect THE STATE OR LOCAL CORPORATION and arrest “Code Breakers”.

Sources: Sapp v. Tallahassee, 348 So.2nd. 363Reiff v. City of Philla., 477 F.Supp. 1262Lynch v. NC Dept. of Justice, 376 S.E.2nd. 247

29. Everything in the ‘United States is up For Sale: Bridges, Roads, Water, Schools, Hospitals, Prisons, Airports, “Federal Lands”, “State (estate) Lands” etc.

Did anybody take time to check who recently bought Klamath Lake and the Arizona State Capital?

Source: Executive Order 12803

30. ‘WE THE PEOPLE’ are HUMAN CAPITAL – aka as “Goyim” to the rulers of theworld.

Source: Executive Order 13037

The U.N. has financed the operations of the ‘United States Government for over 50 years and now ‘owns’ every man, woman, and child in America. The U.N. also holds all of theland of America in Fee Simple.

Why is the above so difficult for most people to understand? Simple: words like ‘person’,‘citizen’, ‘people’, ‘or’, ‘nation’, ‘is’, ‘fact’, ‘authority’, ‘truth’, ‘nation’, ‘crime’, ‘fraud’,‘charge’, ‘right’, ‘statute’, ‘preferred’, ‘assume’, ‘prefer’, ‘constitutor’, ‘creditor’,‘debtor’, ‘debit’,‘discharge’, ‘payment’, ‘law’, ‘United States’, and hundreds of otherwords do NOT mean what you think they mean and you were never taught the ‘Legal Definitions’ so you would ‘Understand that you DON’T understand’.

Don’t let this information alarm you because without it you cannot ever HOPE to be free.

You have to understand that all slavery and freedom originates in the human mind. As the philospher Goethe wrote: “No man is more hopelessly enslaved than he who WRONGLY BELIEVES that he is free.”

When your mind allows you to accept and understand that the United States, Great Brittan and the Vatican are Corporations which are nothing but fictional entities which have been placed in your mind, you will understand our slavery remains primarilybecause we believe in false fictions.

The Illusion is MUCH larger than the irrefutable 30 points above, and the 30 points above are not even the tip of the tip of the iceberg. But it is, at least a starting point. For moreinformation, see:www.atgpress.comwww.TheAmericanVoice.comhttp://www.google.com/search?hl=en&q=IRS+is+a+Fraudwww.ZeitgeistMovie.comwww.FreedomToFascism.com

Invest in Dolan Springs, AZ Community with Great Future.

Night of the Living Death Tax Obama's budget quietly resurrects it in 2010

Lawrence Summers, President Obama's chief economic adviser, declared recently that "Let's be very clear: There are no, no tax increases this year. There are no, no tax increases next year." Oh yes, yes, there are. The President's budget calls for the largest increase in the death tax in U.S. history in 2010.The announcement of this tax increase is buried in footnote 1 on page 127 of the President's budget. That note reads: "The estate tax is maintained at its 2009 parameters." This means the death tax won't fall to zero next year as scheduled under current law, but estates will be taxed instead at up to 45%, with an exemption level of $3.5 million (or $7 million for a couple). Better not plan on dying next year after all.This controversy dates back to George W. Bush's first tax cut in 2001 that phased down the estate tax from 55% to 45% this year and then to zero next year. Although that 10-year tax law was to expire in 2011, meaning that the death tax rate would go all the way back to 55%, the political expectation was that once the estate tax was gone for even one year, it would never return.And that is no doubt why the Obama Administration wants to make sure it never hits zero. It doesn't seem to matter that the vast majority of the money in an estate was already taxed when the money was earned. Liberals counter that the estate tax is "fair" because it is only paid by the richest 2% of American families. This ignores that much of the long-term saving and small business investment in America is motivated by the ability to pass on wealth to the next generation.The importance of intergenerational wealth transfers was first measured in a National Bureau of Economic Research study in 1980. That study looked at wealth and savings over the first three-quarters of the 20th century and found that "intergenerational transfers account for the vast majority of aggregate U.S. capital formation." The co-author of that study was . . . Lawrence Summers.Many economists had previously believed in "the life-cycle theory" of savings, which postulates that workers are motivated to save with a goal of spending it down to zero in retirement. Mr. Summers and coauthor Laurence Kotlikoff showed that patterns of savings don't validate that model; they found that between 41% and 66% of capital stock was transferred either by bequests at death or through trusts and lifetime gifts. A major motivation for saving and building businesses is to pass assets on so children and grandchildren have a better life.What all this means is that the higher the estate tax, the lower the incentive to reinvest in family businesses. Former Congressional Budget Office director Douglas Holtz-Eakin recently used the Summers study as a springboard to compare the economic cost of a 45% estate tax versus a zero rate. He finds that the long-term impact of eliminating the death tax would be to increase small business capital investment by $1.6 trillion. This additional investment would create 1.5 million new jobs.In other words, by raising the estate tax in the name of fairness, Mr. Obama won't merely bring back from the dead one of the most despised of all federal taxes, and not merely splinter many family-owned enterprises. He will also forfeit half the jobs he hopes to gain from his $787 billion stimulus bill. Maybe that's why the news of this unwise tax increase was hidden in a footnote.

Please add your comments to the Opinion Journal forum.Printed in The Wall Street Journal, page A20

Regards,

Brian