Estate Tax News – More Reaction to the Massachusetts Senate’s proposal to cut the estate tax

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.