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
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
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.