Connecticut's governor to constituents: Get out of here before you die!

[David S]

Estates of Pain
Connecticut's governor to constituents: Get out of here before you die!

Monday, August 1, 2005 12:01 a.m. EDT
Florida Governor Jeb Bush ought to send his counterpart in Connecticut, Republican Jodi Rell, a thank-you note with a box of chocolates and a ribbon tied around it. Last month Ms. Rell marked her first anniversary as Governor by signing into law a tax bill that might as well be called the "Palm Beach Economic Development Act."
The law requires that any resident of the Nutmeg State with an estate of more than $2 million pay a death tax of up to 16%--merely for the privilege of dying in Connecticut. The legislators in Hartford hope that the tax will raise $150 million in revenue each year--money that will come in only if the legislators in Hartford are also planning to build a Berlin Wall around the state.
Otherwise, expect a stampede of retirees and family businesses out of Connecticut into the many states without a death tax, such as Florida, which has a constitutional prohibition against estate taxes. Thanks to the Connecticut death levy, a successful small business owner with a $10 million estate can save about $1 million by packing up and heading south.
Full article at http://www.opinionjournal.com/editorial/feature.html?id=110007043

[MODU]

DUH!  hehehe . . . has she slapped herself in the head yet?  Were we not saying just last week how stupid death taxes are?  sheesh!

[MasterJedi]

Wow, how pathetic can you get?

[YRABNNRM]

Alright then, maybe Connecticut won't be my escape from NY.

[A18]

What states have no estate, inheritance, or gift taxes?

[ag]

What states have no estate, inheritance, or gift taxes?

Actually, the question can't be answered.  All states collect some form of estate tax. Most states, however, tie it into the Federal tax (since you can deduct your State tax payment from the federal tax liability, states doing it get a "free lunch" - not imposing it would not change the overall tax liability, but allow the Federal government to collect whatever the state government chose not to collect).  Once the Federal tax is abolished, these states would automatically have their estate taxes abolished as well. While at this point for most states (32 in total) have only this form of a tax, in anticipation some of them are changing the state law to "decouple" the state tax liability from the federal - that's what Connecticut has done (it isn't a new tax, just a decoupling).  I would expect most states to do something like this by the time the federal estate tax is gone.

In any case, among the states that collect their estate taxes directly (and thus will continue collecting them even if the Federal governmet doesn't) are such outposts of socialism as Montana, Oklahoma, Indiana, Mississipi, Nebraska and South Dakota. Connecticut is merely joining this distinguished company.

[A18]

Well, yes, I was aware that many states are going through the decoupling process, though it doesn't look as if the federal estate tax is going to be outright repealed.

Do the states simply use the federal rate?

[Cubby]

Well the sunbelt has all the young people now so maybe this is a way to get rid of some of our elderly population (in the near future some states like CT will have more people over 65 than under 18)

"Death Tax" is a GOP talking point, not a real phrase. I haven't heard anything about this Estate tax, and this is a small state so I would have heard something if this was actually a big deal.

Lets not waste tears over poor poor millionaires who can now only keep $10 Million instead of $15 M. There are other more deserving people who need our compassion.

[David S]

Well the sunbelt has all the young people now so maybe this is a way to get rid of some of our elderly population (in the near future some states like CT will have more people over 65 than under 18)

"Death Tax" is a GOP talking point, not a real phrase. I haven't heard anything about this Estate tax, and this is a small state so I would have heard something if this was actually a big deal.

Lets not waste tears over poor poor millionaires who can now only keep $10 Million instead of $15 M. There are other more deserving people who need our compassion.

The point is that wealthy geezers will simply say adios and head for states without such taxes.

[dazzleman]

Well the sunbelt has all the young people now so maybe this is a way to get rid of some of our elderly population (in the near future some states like CT will have more people over 65 than under 18)

"Death Tax" is a GOP talking point, not a real phrase. I haven't heard anything about this Estate tax, and this is a small state so I would have heard something if this was actually a big deal.

Lets not waste tears over poor poor millionaires who can now only keep $10 Million instead of $15 M. There are other more deserving people who need our compassion.

The point is that wealthy geezers will simply say adios and head for states without such taxes.

Exactly.  States need wealthy people, and it makes no sense to drive them away.

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

[Giant Saguaro]

My goodness.

As a side, I'll tell you: with what I've been reading, FL is sounding more and more sane by the day.

[??????????]

Well the sunbelt has all the young people now so maybe this is a way to get rid of some of our elderly population (in the near future some states like CT will have more people over 65 than under 18)

"Death Tax" is a GOP talking point, not a real phrase. I haven't heard anything about this Estate tax, and this is a small state so I would have heard something if this was actually a big deal.

Lets not waste tears over poor poor millionaires who can now only keep $10 Million instead of $15 M. There are other more deserving people who need our compassion.

The point is that wealthy geezers will simply say adios and head for states without such taxes.

Exactly.  States need wealthy people, and it makes no sense to drive them away.

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

I also believe the law in NY is that if you only live there 6 months out of the year you don't have to pay property tax (or it's a greatly reduced rate). That's why we have many NYers that stay here six months of the year. For Canadians they have to remain in country for 4-6 not sure quite which to be able to keep their free healthcare nonsense. Also many of our northern "visitors" can skip around voting rules and vote in both states. One absentee and one at the polls.

[○∙◄☻¥tπ[╪AV┼cVê└]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

[○∙◄☻¥tπ[╪AV┼cVê└]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

[John Dibble]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

[○∙◄☻¥tπ[╪AV┼cVê└]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

Like what?

[Bono]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

If they are that damned rich, they can have their official residence in the Cayman Islands or Andorra or someother tax heaven.

[○∙◄☻¥tπ[╪AV┼cVê└]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

If they are that damned rich, they can have their official residence in the Cayman Islands or Andorra or someother tax heaven.

So? The Clinton adminstration was going after these tax havens.  Bush reversed that.

[John Dibble]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

Like what?

Rich people move out, businesses getting sold and business owners moving out, less business owners and rich people moving in, ect. - all these can affect the economy.

[○∙◄☻¥tπ[╪AV┼cVê└]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

Like what?

Rich people move out, businesses getting sold and business owners moving out, less business owners and rich people moving in, ect. - all these can affect the economy.

Sounds rather vague. So the rich people move out? They can't take their houses with them.

[Bono]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

If they are that damned rich, they can have their official residence in the Cayman Islands or Andorra or someother tax heaven.

So? The Clinton adminstration was going after these tax havens.  Bush reversed that.

Yes, those countries would eliminate the basis of their own economy and be doomed to eternal poverty so that Bill Clinton could have his way.

[○∙◄☻¥tπ[╪AV┼cVê└]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

If they are that damned rich, they can have their official residence in the Cayman Islands or Andorra or someother tax heaven.

So? The Clinton adminstration was going after these tax havens.  Bush reversed that.

Yes, those countries would eliminate the basis of their own economy and be doomed to eternal poverty so that Bill Clinton could have his way.

You could get around it by passing the right American laws. Nice of you to try to avoid this solution.

[John Dibble]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

Like what?

Rich people move out, businesses getting sold and business owners moving out, less business owners and rich people moving in, ect. - all these can affect the economy.

Sounds rather vague. So the rich people move out? They can't take their houses with them.

Don't expect new rich people to move into those houses, and remember that those rich people are taking their money with them - money that they won't be spending any of in Conneticut, money they won't be paying their property taxes in Conneticut with anymore, money Conneticut can't tax at all anymore.

[Bono]

Of course, state taxes are very easy for the rich to circumvent.  My next door neighbors are very wealthy, and have their official residence in Florida, not Connecticut.  So unless Florida has this tax, they won't pay it.  And others will follow suit, denying the state the money they "need."  The liberals who pass these types of laws never learn.

So basically you support the federal estate tax?

If they are that damned rich, they can have their official residence in the Cayman Islands or Andorra or someother tax heaven.

So? The Clinton adminstration was going after these tax havens.  Bush reversed that.

Yes, those countries would eliminate the basis of their own economy and be doomed to eternal poverty so that Bill Clinton could have his way.

You could get around it by passing the right American laws. Nice of you to try to avoid this solution.

If the republicans wanted to pass those kinds of laws, you'd be crying it was an infringment on the "right to privacy". Plus I support all possible means of evading abusive taxes.

[○∙◄☻¥tπ[╪AV┼cVê└]

Most people could care less about a 16% on estates over $2 million. Even in CT, $2 million is a lot of money.  I wonder if she continues having the lowest disapproval rating in the country.

They'll care more when there are negative effects on their economy.

Like what?

Rich people move out, businesses getting sold and business owners moving out, less business owners and rich people moving in, ect. - all these can affect the economy.

Sounds rather vague. So the rich people move out? They can't take their houses with them.

Don't expect new rich people to move into those houses, and remember that those rich people are taking their money with them - money that they won't be spending any of in Conneticut, money they won't be paying their property taxes in Conneticut with anymore, money Conneticut can't tax at all anymore.

Someone is going to own the land and pay property taxes. You think that everyone will desert CT just because they won't be able to pass on arbitrarily large estates untaxed to the next generation , hurting meritocracy?