News
Estate Taxes On Average Create $165 million In Tax Revenue When Billionaires Die
Summary: If for some unforeseen reason Amazon CEO Jeff Bezos passed away today, The state of Washington would see almost $12 billion in revenue from the estate tax, which is more than 50% of what they raise in a year. In a study on the costs and benefits of the estate tax found that state coffers ...
If for some unforeseen reason Amazon CEO Jeff Bezos passed away today, The state of Washington would see almost $12 billion in revenue from the estate tax, which is more than 50% of what they raise in a year.
In a study on the costs and benefits of the estate tax found that state coffers saw a tax revenue of $165 million following the death of a Forbes 400 billionaire.
David Koch’s recent passing is estimate to bring New York State about $4.17 billion in tax revenue.
The estate tax is a tax imposed on the nation’s richest after their passing. This law has both its supporters and detractors as people feel that it drives the wealthy out of state, particularly as they get older. The feeling is that they’re losing out on billionaire’s income tax for the one-time estate tax.
The study from University of California, Berkely’s Enrico Moretti and Federal Reserve Bank of San Francisco’s Daniel J. Wilson, found the opposite. Typically reaping the one-time estates tax from a billionaire has generated 31% more revenue than what is lost from foregone income tax.
The states that currently employ estate taxes are Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington.
By Ramsey Baker
Tags: estate tax,income tax,Revenue,Study
Link: Estate Taxes On Average Create $165 million In Tax Revenue When Billionaires Die [Copy]
