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
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.