Estate tax compliance costs are high (and may approach the amount of revenue that such taxes yield), and affected households engage in extensive and costly tax planning to reduce estate tax liability. Economic simulations indicate that the federal estate tax has roughly the same effect on entrepreneurial incentives as a doubling of income tax rates, even though the federal estate tax generates less than 1 percent of federal revenue. Wisconsin lawmakers’ proposal would increase estate tax burdens by up to 50 percent over federal levels, yielding a combined top estate tax rate of 60 percent. While the proposed Wisconsin estate tax purports to exempt family farms, it provides no such protection to other family-owned businesses. Heirs to illiquid businesses can be forced to sell land, equipment, or the entire business to pay estate tax liability.