Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Massachusetts Lawmaker Proposes Estate Tax Cut

Author: James F. McDonough

Date: February 25, 2015

Key Contacts

Back

In January, Massachusetts Lawmaker, Shawn Dooley proposed cutting estate taxes in the Bay State in an attempt to prevent elderly citizens from moving to other states.

The Massachusetts Lawmaker revealed that if an estate is worth more than $1 million, the state levies taxes between 8 and 14 percent of that value, The Sun Chronicle reported. In order to retain a greater number of seniors – and also their assets – he is proposing increasing the exemption to $2.6 million, which would be 50 percent of the $5.2 million federal exemption.

As time goes on, he would use this formula – along with inflation indexes – to determine the exemption amount, according to the news source. The lawmaker has said that while his proposal would result in the state losing between $10 million and $15 million every year, very wealthy taxpayers are already circumventing this particular burden.

Ideally, he would eliminate the Massachusetts estate tax completely, but is aware that the state’s legislature would never approve such a motion, the media outlet reported. Currently, only 12 states have this particular revenue source.

Widespread estate tax reform
Massachusetts is not alone in thinking that estate tax reform could help it retain its citizens, as New York State previously increased its estate tax exemption to $5 million from $1 million, Steve Forbes noted in a Forbes article. However, this policy has an interesting caveat. If the estate is valued at more than $5 million, the tax is applied to the entire amount.

This policy could deter small business owners from remaining in the state, Forbes emphasized. This development could impact job creation, creating adverse consequences for the economy.

New York increased this exemption last year, along with Minnesota, Rhode Island and Maryland, policy analyst Jared Meyer noted in The Fiscal Times. Many states have been changing their policies because of the resources that individuals invest into lowering their estate tax burdens, emphasized Meyer, who works at the Manhattan Institute for Policy Research.

Mass. Tax policy considerations
Amid these trends, Noah Berger, president of the Massachusetts Budget and Policy Center, told The Sun Chronicle that lowering estate taxes is not an urgent matter on Beacon Hill. To reduce the burden, state officials would have to decrease revenue that could go toward funding education and local aid.

However, State Rep. Jay Kaufman, chairman of the House Joint Committee on Revenue, has stated that the proposal is worth considering, the media outlet reported.

“Representative Dooley’s bill has merit as it encourages us to examine and consider some interesting potential changes we should consider to our tax code,” Kaufman said in a statement, according to the news source. “The bill raises some very important questions, and should generate a thoughtful analysis and healthy debate on its merits. That’s how democracy is supposed to work. I look forward to the analysis and debate that will follow.”

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide post image

How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide

Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]

Author: Christopher D. Warren

Link to post with title - "How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide"
Gross Lease vs. Net Lease: Understanding the Key Differences post image

Gross Lease vs. Net Lease: Understanding the Key Differences

Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]

Author: Robert L. Baker, Jr.

Link to post with title - "Gross Lease vs. Net Lease: Understanding the Key Differences"
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2 post image

What to Do If You Are Impacted by a Retailer Bankruptcy Part 2

Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]

Author: Brian D. Spector

Link to post with title - "What to Do If You Are Impacted by a Retailer Bankruptcy Part 2"
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business post image

The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business

Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]

Author: Dan Brecher

Link to post with title - "The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business"
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1 post image

Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1

The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]

Author: Brian D. Spector

Link to post with title - "Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1"

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.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: