|2019-01-09||lower||REF. TO JOINT COMM. ON Finance, Revenue and Bonding|
The estate tax is essentially a double-tax, a tax paid when the money was earned and again when people pass away.
The estate tax hits descendants who owned small businesses and farms and are forced to pay tax on the value of that property. Many times that required having to sell the family property in order to pay the tax.
Right now 37 states don’t have an estate tax and attract residents from states like Connecticut that tax estates.
Residents who have built wealth and have managed their earnings successfully are advised by their financial planners to move to states that don’t tax their savings. Frankly, it’s a choice between leaving their money to their family or charities they care about vs having it taken by state government.
The real hit to Connecticut is the loss of tax revenue that follows them to their new home state. A prime example is when former Connecticut resident, Paul Tudor Jones, a hedgefund manager, moved from CT to Florida that resulted in Connecticut losing $30 million of income taxes Mr. Jones paid.
A repeal of the estate tax would be an incentive for higher income residents to remain in Connecticut.
-State Rep. Brenda Kupchick