The Wall Street Journal
featured an article describing the ineffective role of the death tax. Comparing Tennessee and Florida, both states free of income tax, Tennessee's economy has fallen below its potential due to its death tax. Given this year's $5 million exemption on federal estate tax, Tennessee has become an expensive state to die in. Initially designed to tax the top 1%, with 29 states abolishing the tax
at death, wealthy people have simply taken their businesses and expenses
to a state that allows them to pass their property to the heirs without
penalty, like Florida.
See "Death Tax Defying
", The Wall Street Journal (March 23, 2012).
Posted by Myriam Clerge
, Associate Editor, Wealth Strategies Journal