‘Fiscal cliff’ deal costs California $45 million from death tax

Seventh Seal - BergmanJan. 4, 2013

By John Seiler

Even death is not being kind to the California budget. According to the Bee:

“Because Congress permanently killed an estate tax transfer to states this week, California stands to lose $45 million in inheritance tax revenue that Gov. Jerry Brown and lawmakers anticipated in their June budget, according to the Department of Finance.

“As part of the “fiscal cliff” agreement, Congress permanently eliminated the state estate tax credit, a device once used to return a share of federal inheritance taxes to states. The nonpartisan Legislative Analyst’s Office says that likely means California won’t receive estate tax revenues again without a vote of the people.”

In California, Proposition 6, which voters passed in 1982, prohibits the state from collecting an estate tax — better called a death tax.

The death tax often destroys family businesses because the heirs of an estate only can pay the death tax by breaking up the family farm or business through sales to a big conglomerate.

What do you bet that the supermajority Democrats in the Legislature now will try to bring back to the California death tax by putting it on the ballot in 2014? Democrats will insist, “The filthy rich are ripping us off again! They’re living it up on their yachts even after they’re dead! They need to pay their fair share for the education of our youth in our world-leading schools!” — meaning pay more for the teachers’ pensions, and schools that are leading at the bottom of test scores.

If that happens, it’ll be another reason to leave the state — before the grim taxer follows the grim reaper and grabs your money even as you leave the hospital in a body bag.

 

 

 

3 comments

Write a comment
  1. us citizen
    us citizen 4 January, 2013, 18:30

    That money is not the states. Its whoever it is willed to.

    Reply this comment
  2. Douglas
    Douglas 5 January, 2013, 09:04

    It belongs to the feds, now. They got it and they aren’t rebating part of it to the state.

    Reply this comment
  3. Rex the Wonder Dog!
    Rex the Wonder Dog! 5 January, 2013, 11:03

    The so called fiscal cliff is the SAME SCAM that was used to pass TARP- pass it or the world will end…….yeah, right, and I have ocean front property to sell you in CO……..

    Reply this comment

Write a Comment

Leave a Reply



Related Articles

Absurd Prop 2 provision shows extent of teacher unions’ clout

If you want an example of just how powerful the teachers unions are in Sacramento, consider Proposition 2. The measure

Links To CA's Dismal Finances

Wayne Lusvardi: Here are some news stories documenting California’s dismal state of affairs. Oakland May Double Down Its Faulty Bet:

Why Kathleen Brown lost

With Jerry Brown running for governor — again — I might as well tell my Kathleen Brown Story. Because of