Download or read book The Impact of the Federal Estate Tax on State Estate Taxes written by Steven Maguire and published by Createspace Independent Publishing Platform. This book was released on 2012-11-22 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: An estate tax is a tax levied on the assets left behind by a decedent. The federal government and many state governments levy estate taxes or some type of tax on the transfer of assets at death. In 2012, the federal estate tax allows for a $5.12 million exclusion and a top rate of 35%. The federal estate tax is scheduled to revert to the pre-2001 structure on January 1, 2013, with a $1 million exclusion and top rate of 55%. The Administration's FY2013 budget proposes a federal estate tax with a $3.5 million exemption and top rate of 45% for 2013. Many states also levy estate or inheritance taxes (or both) that are linked to federal law. If the federal estate tax is allowed to revert to pre-2001 law, state and federal estate tax revenue will increase significantly by imposing a greater tax burden on estates than would an extension of 2012 law or the President's FY2013 budget proposal. The percentage increase in state estate tax revenue would likely be greater than the percentage increase in federal estate taxes under a return to pre-2001 law. The principal cause is the return of the federal credit for state death taxes when the tax changes originally enacted by the Economic Growth Tax Relief and Reconciliation Act in 2001 (EGTRRA, P.L. 107-16) expire. Before EGTRRA, all 50 states and the District of Columbia imposed an estate tax where state estate taxes were linked directly to the federal credit for state death taxes paid ("death" taxes because the credit could also be used for inheritance and succession taxes). The dollar-for-dollar credit meant that state taxes were not an additional burden, creating the equivalent of a revenue sharing arrangement between the federal government and the states as most states structured their taxes to match exactly the federal credit. EGTRRA gradually replaced the federal credit with a deduction. Because of this change to a deduction, state estate and inheritance taxes were no longer offset on a dollar-for-dollar basis and, as a result, imposed an additional burden on estates and heirs. States were then lobbied for relief from this additional estate tax burden. As a result, by 2012, just 16 states and the District of Columbia imposed an estate tax and 8 states imposed an inheritance tax (2 states levied both). As Congress considers the future of the federal estate tax, questions concerning the coordination of the tax with the states have arisen. This report examines the interaction of federal and state estate taxes under three policy alternatives: (1) extend the 2012 law, (2) revert to the pre-2001 law, and (3) return to the 2009 law as proposed in the Administration's FY2013 budget proposal. A fourth option, repeal of the federal estate tax, has also been proposed. If the federal estate tax were repealed, repeal of most remaining state estate taxes would likely follow. This option, however, would most likely be considered in the context of broader tax reform and is beyond the scope of this report. Which course of action Congress will choose is uncertain and the impact on the states is unclear. What is more certain is that coordination with states would likely reduce administrative and compliance costs of the estate tax, increase the progressivity of the code generally, and possibly increase the economic efficiency of state estate taxes.
Download or read book Impact of the Federal Estate Tax on State Estate Taxes written by Steven Maguire and published by . This book was released on 2012-12-26 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact of the Federal Estate Tax on State Estate Taxes written by Steven Maguire and published by . This book was released on 2012-12-26 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Effects of the Federal Estate Tax on Farms and Small Businesses written by United States. Congressional Budget Office and published by . This book was released on 2005 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Rethinking Estate and Gift Taxation written by William G. Gale and published by Rowman & Littlefield. This book was released on 2011-07-01 with total page 544 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although estate and gift taxes raise a small fraction of federal revenues, they have become sources of increasing political controversy. This book is designed to inform the current policy debate and build a conceptual basis for future scholarship. The book contains eleven original studies of estate and gift taxes, along with discussants' comments. The essays provide background and historical information; analyze the optimal taxation of estates and gifts; examine the effects of the tax on charitable contributions, saving behavior, the distribution and level of wealth, tax avoidance and tax evasion; and explore the effects of alternatives to estate taxation.
Download or read book Federal and State Estate Tax Report written by Illinois Economic and Fiscal Commission and published by . This book was released on 2001 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Economics of the Estate Tax written by United States. Congress. Joint Economic Committee and published by . This book was released on 1999 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book State Estate Taxes after EGTRRA written by Jeffrey A. Cooper and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: From 1924 to 2001, federal estate tax laws included a credit for state death taxes paid by a decedent's estate. The 1954 version of the Internal Revenue Code codified this state death tax credit in section 2011, providing a dollar-for-dollar reduction in federal estate tax for state death taxes paid up to specified limits. As of 2001, all fifty states collected a state estate tax calculated with reference to the maximum state death tax credit. Such taxes, known as pick-up taxes, enabled state governments to share in federal estate tax revenue without imposing any additional tax burden on their residents' estates. lt;brgt;lt;brgt;In 2001 Congress passed, and President Bush signed into law, The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). This legislation provided in relevant part for the elimination of the state death tax credit over a period of 4 years.lt;brgt;lt;brgt;As the state death tax credit was eliminated, so too was the state estate tax in every state with a pick-up tax. In response, state legislatures across the country acted to establish separate state estate taxes that operate independently of the federal estate tax system. The result is a seemingly non-stop progression of new state estate tax laws, often enacted with concern only for preserving state revenue and without adequate consideration for the complexities that result. lt;brgt;lt;brgt;This Article is organized in three sections. The first is an analysis of EGTRRA as a piece of estate tax legislation, focusing on the repeal of the state death tax credit as a stealth revenue measure hidden within a tax cut. Second is a survey of the multitude of state legislative responses, seeking to both explain and to categorize these new state estate taxes emerging in response to EGTRRA. Last is a study of the impact of these different state responses to EGTRRA, both from the vantage point of state revenue considerations and from the perspective of estate planning and administration.
Download or read book Basis of Assets written by United States. Internal Revenue Service and published by . This book was released on with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inheritance and the State written by Richard E. Wagner and published by . This book was released on 1977 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Estate and Gift Taxes written by and published by . This book was released on 1992 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Withholding and Estimated Tax written by and published by . This book was released on 1993 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estate Taxes Going Going Gone written by David Zin and published by . This book was released on 2001 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal and New York State Income and Estate Taxes Affecting Estates and Trusts written by Prentice-Hall, Inc and published by . This book was released on 1930 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Basis of Assets written by and published by . This book was released on 1995 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Individual retirement arrangements IRAs written by United States. Internal Revenue Service and published by . This book was released on 1990 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Federal Estate Tax written by David Joulfaian and published by MIT Press. This book was released on 2024-02-06 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive and accessible account of the U.S. estate tax, examining its history and evolution, structure and inner workings, and economic consequences. Governments have been levying some form of inheritance tax since the ancient Egyptians did so in the seventh century BC. In the United States, the federal government experimented with various forms of inheritance taxes, settling on an estate tax in 1916 and a gift tax in 1932. Despite this long history, there are few empirical studies of the federal estate tax. This book offers the first comprehensive look at U.S. estate and inheritance taxes, examining their history and evolution, structure and inner workings, and economic consequences. Written by David Joulfaian, a veteran economist at the U.S. Department of the Treasury, the book provides accessible accounts of such topics as changes in tax laws, issues of equity, the fiscal contribution of the estate tax, and its behavioral effects. Joulfaian traces the evolution of U.S. inheritance taxes from 1797 to the present, noting that the estate tax rate and base expanded through 1976, then began to decline. He describes the tax itself, explaining that it currently applies to estates and gifts in excess of $11.18 million, and outlines applicable deductions and credits. He sketches a profile of taxpayers and their beneficiaries; surveys the revenues from estate and gift taxes; and discusses the effect of estate taxation on labor decisions, saving and wealth accumulation, charitable giving, life insurance ownership, and other economic activities. Finally, he addresses criticisms of the estate tax and analyzes its shortcomings. Accompanying tables present a wealth of data gathered by Joulfaian in his research and not available elsewhere.
