James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Everyone Has An Opinion On Estate Tax Reform
Author: James F. McDonough
Date: May 4, 2015
Key Contacts
Back
Currently, just about everyone has an opinion on estate tax reform.
A proposal to permanently repeal the federal estate tax has obtained approval in the U.S. House of Representatives, but there are many – including lawmakers, policy analysts and various kinds of experts – who have spoken their opinion on estate tax reform.
Opponents of abolishing the so-called death tax have contended that the policy hampers small businesses, giving them an unnecessary burden that can interfere with their ability to operate properly.
Advocates of repealing tax speak out
A perfect example of a lawmaker who has illustrated the cost of the federal estate tax is Rep. Kristi Noem, R-S.D., who explained that following her father’s death in a farming accident, her family needed to borrow money to pay off the estate tax burden, according to The Wall Street Journal.
“We owed [the government] money because we had a tragedy happen,” stated Noem, the media outlet reported. “It took us 10 years to pay off that loan.”
A burden for small businesses
Reps. Kevin Brady, R-Texas, and Steve Scalise, R-LA., also criticized the estate tax in a USA Today column, asserting that the policy forces many families to sell their small business simply to appease the IRS.
While those who oppose repealing the death tax assert that eliminating the levy would benefit the wealthiest Americans, Brady and Scalise asserted that farmers, ranchers and entrepreneurs – who have their wealth stored in assets like property, real estate and capital equipment – would suffer. As for the super rich, many have asserted that these Americans can find countless ways to reduce their tax burdens.
Finally, the authors cited figures from nonpartisan think tank The Tax Foundation, which reveal that repealing the estate tax will result in the creation of 139,000 new jobs and also increase worker compensation.
Regardless of which arguments are circulated, many political observers have emphasized that President Barack Obama has been quite critical of any efforts to eliminate the federal estate tax, and has threatened to veto any legislation that would enact this change should it reach his desk. Before the bill gets to the leader of the free world, it would need to get past the Senate, where its reception is unclear.
- 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
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
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.