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Estate tax relief bills gain momentum - The Frederick News-Post : Budget And Tax

Estate tax Estate tax relief bills gain momentum

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Posted: Wednesday, January 22, 2014 2:00 am

ANNAPOLIS — Maryland lawmakers are thinking of easing estate taxes this legislative session, a change proponents say would prevent many retirees from decamping to warmer, and less taxed, parts of the country.

While the federal government begins taxing estates after the first $5.25 million, Maryland spares only the first $1 million from its tax, which ranges between 8 and 16 percent. Some lawmakers are concerned this disparity prompts people to leave Maryland when they near retirement age and settle in states like Florida, which does not assess an estate tax. This session of the Maryland General Assembly, several legislators have proffered proposals for making Maryland look more attractive to retirees.

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9 comments:

  • watson4sherlock posted at 8:44 pm on Wed, Jan 22, 2014.

    watson4sherlock Posts: 11578

    It's not the dead who are taxed, it is the property that is transfered to the beneficiaries.

     
  • watson4sherlock posted at 8:44 pm on Wed, Jan 22, 2014.

    watson4sherlock Posts: 11578

    Why would easing the estate tax keep people with higher incomes here? They just create trusts to minimize their tax liability and go live where living expenses and income taxes are the lowest. Estate taxes are not even a factor to consider.

    Retirement can be an ideal opportunity to relocate. Here's our new list of 25 top U.S. cities for seniors. Data considered include living and housing costs, taxes, weather, air quality, doctor availability, crime rates and active-lifestyle rankings for bicycling and volunteering. We also take into account the Milken Institute's latest ranking of "Best Cities for Successful Aging." Cities are listed in alphabetical order.

    See http://www.forbes.com/pictures/mjf45glmi/time-for-a-move/

     
  • Arcticdc5 posted at 3:11 pm on Wed, Jan 22, 2014.

    Arcticdc5 Posts: 953

    Taxing the dead - horrible.

     
  • rscott25 posted at 1:21 pm on Wed, Jan 22, 2014.

    rscott25 Posts: 783

    I believe he is referring to home purchases. But, if you think about it, most of the things Maryland charges you on in the estate tax, life insurance benefits, homes, retirement accounts....you will have already paid income taxes in order to obtain them. So it really is double dipping from that angle. It is like a VAT tax on the inheritance you plan pass down.

     
  • public-redux posted at 11:12 am on Wed, Jan 22, 2014.

    public-redux Posts: 3008

    To which tax are you referring? No one pays an estate tax when they buy something.

     
  • public-redux posted at 9:37 am on Wed, Jan 22, 2014.

    public-redux Posts: 3008

    Yes, the estate tax exemption should be increased across the board. Not the big-government Afzali way where she picks and chooses who gets a bigger exemption and who doesn't.

    Here's a grand compromise idea for getting this done politically: link increases in the estate tax exemption to increases in the minimum wage.

     
  • pixie-dust posted at 7:30 am on Wed, Jan 22, 2014.

    pixie-dust Posts: 1119

    [thumbup]

     
  • pixie-dust posted at 7:30 am on Wed, Jan 22, 2014.

    pixie-dust Posts: 1119

    Our esteemed lawmakers are forgetting about the gift tax. The Feds have a unified gift and estate tax. The amount for this year is $5.34 million, not the $5.25 million mentioned in the article. Maryland has no gift tax at all.

    Consequently, a Marylander worth $5.34 million could prevent all of that money from being taxed at both the state and federal levels with a little forethought and some legal advice.

    So is Brinkley proposing that Maryland institute a gift tax just like the Feds?

     
  • Chron posted at 7:11 am on Wed, Jan 22, 2014.

    Chron Posts: 67

    While I think it is a good idea to increase the threshold for this tax to keep up with the times from when it was first established (like, maybe it should be increased to $2 million threshold instead of $1 million threshold), there are two things stated in this article that are just idiotic:

    (1) People leave for Florida because of low estate taxes.

    No, they don't. They leave for Florida because of warm weather and lack of snow. Lower taxes are just icing on the cake. Florida could not repel seniors by instituting or raising taxes. Many who leave for Florida do not have estates above $1 million anyway (just like many people who stay in Maryland).

    (2) If the federal government doesn't tax it, neither should we.

    This is a patently bizarre, logically-challenged idea. If we adhered to that idea, then we should get rid of the sales tax because the federal government doesn't (and can't) charge a sales tax. We should get rid of real estate taxes because the federal government doesn't charge real estate taxes. Etc, etc, etc ... just dumb.

     

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