
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: March 23, 2015

Of Counsel
732-568-8360 jmcdonough@sh-law.comThe group of lawmakers will consider such a move after Rep. Kevin Brady (R-Texas) introduced the Death Tax Repeal Act of 2015 in February, according to Accounting Today.
While opponents of the estate tax contend that it unfairly hampers small businesses, as well as those tied to family ranches and farms, the legislation sponsored by Brady would eliminate not only the so-called death tax, but also the Generation-Skipping Transfer Tax, the media outlet reported.
During a recent hearing of the Ways and Means Select Revenue Measures Subcommittee, Dave Reichert (D-Washington) spoke to the challenges these fledgling businesses frequently encounter.
“The story is the same in all of our districts – family business owners and farmers work hard for their entire lives with the goal of passing on the fruits of their labor, but face the sometimes insurmountable hurdle of the death tax,” he stated. “And in addition to the actual tax liability the death tax imposes, merely planning for it – regardless of whether these businesspeople and farmers end up owing it – is yet another challenge that we will hear discussed today.”
Amid these difficulties, the House Ways and Means Committee will vote on eliminating the estate tax for the first time in approximately one decade, Doug Andres, a committee spokesman, told The Hill. Congressional republicans have thus far failed to remove the tax completely, but they have managed to scale it down somewhat.
Currently, individuals do not have to pay the death tax on the first $5.43 million of their estate, while this figure is $10.86 million for a married couple. Estates that do trigger the levying of the burden generate a top tax rate of 40 percent.
The Hill reported figures from The Joint Committee on Taxation showing that eliminating this particular burden would cost the federal government nearly $295 billion over the course of 10 years. However, the portion of total tax revenues this policy brings in has declined over the years.
The estate tax provided 2.6 percent of this income four decades ago, but this portion plunged to 0.6 percent in 2014, the committee stated, according to the news source.
Assuming the proposed bill reaches the House floor for a vote and gains approval, many have speculated the legislation has very little chance of being signed into law, as President Barack Obama has advocated expanding the scope of the estate tax.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki

Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton

Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki

For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena

Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!