James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
End the Double Taxation Created by the Estate Tax
Author: James F. McDonough
Date: June 12, 2015
Key Contacts
Back
Double Taxation & the Federal Estate Tax
As many lawmakers push to end the federal estate tax for good, one national senator has written a letter to the Twin Falls Times-News, contending that this particular policy may be one of the least fair taxes on the books due to the double taxation it creates. In the piece, Sen. Michael Dean Crapo, R-Idaho, voiced his support for scrapping the policy and lamented the impact it has had on residents of his home state.
Crapo is certainly not alone in this sentiment, as many have stated that the levy can interfere with families passing down their small businesses.
Those looking to garner support for eliminating the measure entirely have repeatedly pointed to instances where entrepreneurs had to sell their companies even though they had remained in the family for generations.
Effects of the Policy
Those unlucky enough to trigger this levy have a 40 percent tax to pay, and Crapo noted IRS figures indicating Idaho residents with taxable federal estates footed an average federal estate tax bill of $1.6 million in 2013. In addition to generating this liability, many families invest significant time, energy and money into estate planning to meet their obligations.
Overcoming these hurdles can be even worse in certain areas where land values have soared, presenting the owners of this property with high tax burdens, the Republican senator noted. No small business owner should be prevented from passing their life’s work on to their children.
Over the last several years, lawmakers have focused a great deal on tax reform. Since 2000, government officials have enacted several changes to federal tax law. However, Crapo emphasized that they have failed to create the policies needed to put our economy in a better place, which would include simplifying the tax code, making the tax base larger and cutting rates for Americans. If lawmakers are truly interested in creating jobs and stimulating the economy, they should start by eliminating the death tax for good.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.