New Study Shows Death Taxes Hurt States That Impose Them

The Heritage Foundation has released a new report which shows that states that impose estate taxes have driven away many of the wealthy from their states. As of now, thirteen states have the tax with rates ranging from 9% to 20% although many states have recently repealed the levy or cut the rate. The result of this outflow on capital from death tax states has lead to lesser investment in state as families look to safer tax regimes to invest their money. In addition, the revenue generated from the duty has fallen short of projections which has lowed the incentive to enforce the tax administratively and politically. Ultimately, the future of the estate tax at the federal and state level is still in doubt as both political parties have candidates that have indicated the estate tax will be an issue in the campaign.