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
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
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.