Massachusetts Representative Proposes Estate Tax Cut

As a way of keeping older residents and their assets in Massachusetts, State Representative Shawn Dooley is proposing a cut in the state estate tax. 

Rep. Dooley would accomplish the cut by doubling the exemption from the tax so it only impacts estates worth $2.6 million or more.  The bill he is filing would exempt the first $2.6 million of an estate and change the rates to 10 to 13 percent, with larger estates being hit with higher rates. 

Although Rep. Dooley estimates Massachusetts would lose between $10 million and $15 million a year in estate taxes if his changes were made, currently the very wealthy are avoiding the tax and less wealthy people are paying it.  Furthermore, by keeping more elderly people in the state rather then have them move their residency would increase some revenue. 

See Jim Hand, Attleboro Area State Rep Proposes Cut in Mass. Estate Tax, The Sun Chronicle, Jan. 13, 2015.