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 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 A Survey of State Responses to Egtrra s Estate Tax Changes written by Joel Michael and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author examines states' responses to federal estate tax changes. He points out that most states have maintained their link to the federal tax even though that means their taxes will be phased out, but some of the most populous states will impose estate taxes.

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 Estate and Gift Taxes written by Jane Gravelle and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA, P.L. 107-16) repeals the estate tax in 2010. During the phase-out period, the new law increases the exempt amount to $3.5 million by 2009 ($1.5 million in 2005), lowers the top rate to 45% by 2007 (the top rate in 2005 is 47%), and repeals the federal credit for state death taxes in 2005. The federal gift tax remains though the rate is reduced to the top personal income tax rate (35% in 2005). After repeal of the estate tax, carryover basis replaces step-up in basis for assets transferred at death. The legislation includes an exemption from carryover basis for capital gains of $1.3 million (and an additional $3 million for a surviving spouse). However, the estate tax provision in EGTRRA automatically sunsets December 31, 2010.

Download or read book Estate and Gift Taxes written by Jane Gravelle and published by . This book was released on 2005 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Estate Tax written by and published by . This book was released on 2009 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Wrestling with Decoupling written by Jeffrey A. Cooper and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) dealt a fiscal blow to state governments by repealing the state death tax credit, a mechanism by which the Federal government effectively shared estate tax revenues with the states. Between 2001 and 2005, the repeal gradually took effect and is now complete. When EGTRRA repealed the state death tax credit, it also effectively repealed all state estate taxes calculated by reference to that credit. This change impacted state estate taxes nationwide and completely eliminated 38 state estate tax regimes. In a process known as "decoupling," some of the affected states have responded by imposing new, independent, state estate taxes. This brief Article highlights three areas in which this decoupling of Federal and state death tax regimes has impacted modern estate planning: (1) forcing estate planning lawyers to rethink the fundamental structure of modern estate plans, (2) dramatically increasing the potential tax savings to be achieved by taxpayers changing their state of domicile, and (3) imposing new administrative burdens on decedent's estates.

Download or read book The Repeal of the Federal Estate Tax Under the Economic Growth and Tax Relief Reconciliation Act of 2001 EGTRRA written by Douglas A. Edwards and published by . This book was released on 2003 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book State Estate and Gift Tax Revenue written by and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: P.L. 107-16, the Economic Growth and Tax Relief Reconciliation Act of 2001, repeals the federal estate tax for decedents that die in 2010. In addition, the act repeals the credit for state estate taxes for decedents dying after December 31, 2004, and replaces the credit with a deduction. In most states, the repeal of the tax and the significant increase in the federal exclusion will also repeal or diminish state estate, inheritance, and gift taxes. Some state budgets depend on the estate tax more than others. As a percentage of total tax revenue collected from FY1984 to FY2003, state estate tax contributions ranged from 0.12% in Alaska to 3.58% in New Hampshire. When the federal "credit for state death taxes" is changed to a deduction (beginning in 2005), 28 states, including Alaska and New Hampshire, will no longer levy estate taxes. Several bills introduced in the 109th Congress would repeal the sunset for estate tax repeal: H.R. 8, H.R. 183, S. 7, and S. 420. Repeal of the sunset would make repeal of the estate tax permanent and retain other modifications to the valuation of assets at death and gift taxes implemented by EGTRRA. This report will be updated as events warrant.

Download or read book General Explanation of Tax Legislation Enacted in written by and published by Government Printing Office. This book was released on 2005 with total page 652 pages. Available in PDF, EPUB and Kindle. Book excerpt: JCS-5-05. Joint Committee Print. Provides an explanation of tax legislation enacted in the 108th Congress. Arranged in chronological order by the date each piece of legislation was signed into law. This document, prepared by the staff of the Joint Committee on Taxation in consultation with the staffs of the House Committee on Ways and Means and the Senate Committee on Finance, provides an explanation of tax legislation enacted in the 108th Congress. The explanation follows the chronological order of the tax legislation as signed into law. For each provision, the document includes a description of present law, explanation of the provision, and effective date. Present law describes the law in effect immediately prior to enactment. It does not reflect changes to the law made by the provision or subsequent to the enactment of the provision. For many provisions, the reasons for change are also included. In some instances, provisions included in legislation enacted in the 108th Congress were not reported out of committee before enactment. For example, in some cases, the provisions enacted were included in bills that went directly to the House and Senate floors. As a result, the legislative history of such provisions does not include the reasons for change normally included in a committee report. In the case of such provisions, no reasons for change are included with the explanation of the provision in this document. In some cases, there is no legislative history for enacted provisions. For such provisions, this document includes a description of present law, explanation of the provision, and effective date, as prepared by the staff of the Joint Committee on Taxation. In some cases, contemporaneous technical explanations of certain bills were prepared and published by the staff of the Joint Committee. In those cases, this document follows the technical explanations. Section references are to the Internal Revenue Code unless otherwise indicated.

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 The Federal Gift Tax written by David Joulfaian and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The gift tax was first enacted in 1924, repealed in 1926, overhauled and reintroduced in 1932. At its peak in fiscal year 1999, it raised $4.6 billion in revenues, before the recent phased-in tax rate reductions ushered by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) took effect. It is noteworthy that the gift tax was first enacted as a protective measure to minimize estate and income tax avoidance, and not for its direct revenue yield. Similarly, EGTRRA, while phasing out the estate tax, retained the gift tax for the very same reasons. Unlike the estate tax which faces an uncertain future, the gift tax is little affected by recent legislative proposals and will remain part of the tax code for the foreseeable future. Nevertheless, the gift tax has been the subject of little scrutiny and studies of its economic implications are rare. This paper is an attempt to fill this void. It traces the evolution of the gift tax since its inception, and sketches out the structure of the tax and its complex interactions with the income and estate taxes. The paper also provides an overview of the direct fiscal contribution of the gift tax, and traces the number of taxpayers over time as well as their attributes. It concludes with a discussion of the behavioral effects of the gift tax and a review of the scant literature. These include empirical evidence on the choice between gifts and bequests, timing of gifts, and compliance among others.

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 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.

Download or read book War and Taxes written by Steven A. Bank and published by The Urban Insitute. This book was released on 2008 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction: This book explores the long history of American taxation during times of war. As political scientist David Mayhew recently observed, since it's founding in 1789, the United States has conducted hot wars for some 38 years, occupied the South militarily for a decade, waged the Cold War for several decades, and staged countless smaller actions against Indian tribes or foreign powers. The cost of these activities has been immense, with important and lasting consequences for the tax system, the economy, and the nation's political structure. By focusing on tax legislation, we hope to identify some of these consequences. But we are not interested in simply recounting statutory details. Rather, we hope to illuminate the politics of war taxation, with a special focus on the influence of arguments concerning "shaped sacrifice" in shaping wartime tax policy. Moreover, we aim to shed light on a less examined aspect of this history by offering a detailed account of wartime opposition to increased taxes.

Download or read book 2017 State Business Tax Climate Index written by Jared Walczak and published by . This book was released on 2017-09-28 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Tax Foundation's State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states' tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems, and provides a roadmap to improving these structures.