Rule detrimental to highly liquid companies

Small and mid-si­zed com­pa­nies will also feel the ef­fects of the new rule, if they eit­her have a great deal of cash and equi­va­lents be­cause of their need for high li­qui­dity or have been able to set aside a so­lid fi­nan­cial cushion from a pro­fi­ta­ble busi­ness. The con­cern here is also that the next ge­ne­ra­tion ta­king over a com­pany will have to pay in­heri­tance ta­xes, which will ul­ti­mately de­prive the com­pany of its li­qui­dity.