Adding to an earlier post, here is more reaction from Massachusetts media outlets following the Senate’s announcement of it’s estate tax relief proposal. From The [Lowell] Sun:
Compared to the House proposal, the plan from Senate Democrats suggests a more limited child and dependent tax credit and a different approach to reducing the estate tax.
[. . .] The proposal also exempts estates valued under $2 million from the estate tax and seeks to eliminate the “tax cliff,” when any estate above the threshold triggers taxes on the entire value rather than just the overage.
[. . .]
The Senate’s version of the estate tax reform, also controversial with progressives, carries a total cost of $185 million to the state. It aligns with the House’s proposal to double the threshold at which the estate tax kicks in, from $1 million to $2 million, and seeks to eliminate the so-called cliff effect, by allowing a uniform credit of $99,600.
The House took a slightly different approach to try to eliminate the cliff effect, instead only taxing the value of an estate that exceeds $2 million, and not the entire estate as law currently requires. This approach carries a larger price tag for state coffers, likely costing an estimated $231 million.
This post is a part of Old Colony Law’s Estate Tax Updates.