Time sensitive: Stop the repeal of the estate tax!

TIME SENSITIVE REQUEST

We have just learned that the Revenue Laws Study Committee of the NCGA will likely consider whether or not to repeal North Carolina's estate tax at their meeting at 9:30 AM on Wednesday, March 7th (tomorrow!). Repeal of this tax would rob the state of $80 million in revenues ANNUALLY while benefiting ONLY those people inheriting estates worth $3.5 million in the case of individuals or $7 million for an estate left by a couple.

In other words, repeal of this tax would benefit less than half of North Carolina's 1% while slashing tens of millions of dollars badly needed in our state budget for many public services, including healthcare and our public school system -- already reeling under the burden of devastating budget cuts this year.

Don't let them get away with it! Please send your NC Reps and the Revenue Laws Committee an email tonight telling them these are not North Carolina’s priorities! We’ve made it easy for you to send one email to all here:

Do it now.

Comments

More background on repealing taxes on the wildly wealthy

In addition to the revenue it would cost the state (as you mention above)...

From NC Policy Watch:

2.It’s a solution in search of a problem. Only a very few wealthy estates in North Carolina owe any estate tax in any given year. Because of generous exemptions ($3.5 million for individuals, $7 million for couples in tax-year 2009), the estates of only 2 of every 1,000 decedents in North Carolina resulted in any estate tax liability in 2010, a mere 123 estates in total.

3.Eliminating the estate tax will not help small businesses or family farms. Contrary to the claims of estate-tax opponents, there are almost no small businesses or farms among the very few estates with any estate tax liability. Only an estimated 1.3 percent of tax-liable estates nationwide have significant small-business or farm assets, about 140 in all states in 2011. Furthermore, there are many estate-tax provisions that make it easier for estates with closely-held businesses and farms to pay the estate tax, including spreading the payments over 14 years.

4.A significant share of North Carolina’s estate tax is essentially paid by the federal government.North Carolina’s estate tax is also entirely deductible on federal estate tax returns, meaning that the federal government would essentially pay up to 45 percent of the cost of an estate’s North Carolina estate tax liability if the 2009 federal estate tax parameters are made permanent. At a time when low-income and middle class families are still struggling to recover from the enduring impact of the Great Recession, including bearing the brunt of state cuts to public education, early childhood programs, and health services, preserving North Carolina’s estate tax is an important part of ensuring everyone pays their fair share to support adequate resources for North Carolina’s vital public investments.

emphasis mine

 

Some relevant Tweets

ncbudgetandtax 11:25am via HootSuite
There are almost no small businesses or farms among the very few estates with any #estatetax liability #ncga #ncpol

The problems of the few outweigh the problems of the many. That's not leadership, it's the worship of the wealthy.

ProgressNow_NC 11:32am via Twitter for iPhone
Repeal of NC estate tax wouldn't reduce tax bill for families. All money would just go to fed govt. Who thinks this is a good idea??? #NCGA

If nothing else, NC could use those dollars to pay back the Federal government for the state's unemployment debt. But I'm probably overthinking it.

ProgressNow_NC 11:41am via Twitter for iPhone
Civitas speaker supports repeal of the estate tax. He must trust Congress to spend that money better than the GOP-led #NCGA.

Another example of the reactionary, poorly-thought-out advice from NC's premier stink-tank.

ncbudgetandtax 11:45am via HootSuite
Deduction for charitable donations & spousal bequests benefits largest estates most, not small farms and businesses #ncga...

And as long as those small businesses keep gobbling up the right-wing propaganda that's directed at them, they'll never get the help they need to prosper.

ncbudgetandtax 11:57am via HootSuite
Rep. Luebke: estate tax just as legitimate source of revenue as any other state tax #ncga #ncpol #wellsaid

Of course it is. And as far as "income" is concerned, inheriting should be taxed (at least) as much as pushing a broom or digging a ditch.

ncbudgetandtax 12:00pm via HootSuite
Sen. McKissick: let's look at other options before putting $170 million hole in the state budget by repealing the #estatetax #ncga #ncpol

NC GOP, consider yourself warned: If you abolish this tax (on less than 1% of NC'ians), after refusing to cap the gas tax (that impacts everyone), you will pay dearly for it at the polls in November.