In this past year’s elections it was obvious to Ohio Republicans that the families of their state agreed with their promise to eliminate estate or “death taxes,” reported a New York Custody Lawyer.
The State holds a deficit currently of more than $8 billion. This tax cut promises to create more jobs, enhance consumer confidence and to encourage elderly citizens to maintain local residence.
“Our wealthier, older citizens change their legal residence to their property in Florida to avoid having their survivors pay estate taxes when they die,” said a local republican.
“If we keep them here as legal citizens year round, they will pay more income tax,” he added.
The state’s current governor said he believes the state’s collection of income taxes in its local municipalities will offset the loss in revenue that will come with the loss of the estate tax.
“That’s what local families wanted,” he said, “more choice in local government.”
A Nassau Family Lawyer said their local officials expressed worry that losing this income might hurt the cities, said a New York Family Lawyer, and explained that the city had been using these funds from the estate taxes for building fire stations, police stations, repairing roads, purchasing land and building things like museums and parks.
“It’s a double whammy,” one trustee said. “I don’t want to ring the fire bell too soon, but we simply cannot make up a shortfall if we lose that plus the local government funds.”
Most economists, estate planning and family attorneys argue the elimination of the estate tax will more than likely stimulate things positively and lead to economic growth.
“It should not come as a surprise that Ohioans are changing their residency to avoid the estate tax,” a New York Estate Planning Lawyer added.
A study by the Connecticut Department of Revenue recently concluded that 26 states without an estate tax introduced twice as many new jobs and their economies grew nearly 50 percent more from 2004-2007 than the 24 states with estate taxes.
A Queens Family Lawyer said that in the end, most agree that it varies from city to city whether or not the loss of revenue from estate tax will negatively or positively impact their economic growth or state of affairs. Some of the cities clearly depend on the revenue for road repair and other parts of their annual maintenance and some don’t depend on the revenue or even include it in their budget.
The governor says he hopes and believes that the increase in local income taxes they will receive from this change will be enough to offset the loss. Changes in local laws regarding estate taxes will absolutely affect you and your family. A New York Family Lawyer can help you and your loved ones stay informed in these areas.