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Ohio Officials Look at Estate Tax Repeal

1 min readBy: Joseph Bishop-Henchman

From the Columbus Dispatch:

Elimination of the estate taxAn estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits, at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. , which hits estates valued at more than $338,333 when a person dies, was among the first 18 bills rolled out yesterday by House Republican leaders, who officially regained control of the chamber last week.

The estate taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. brings in about $245 million a year to local governments and about $60 million a year to the state. Some cities, villages and townships rely on it more heavily than others.[…]

John Mahoney of the Ohio Municipal League has fought for a decade to preserve the estate tax, which hits about 7 percent of estates, according to state estimates.[…]

It’s important to note that while only a small number of estates pay an estate tax, the compliance costs of it are much more widespread. Many individuals engage in complex estate planning and/or buy insurance policies to avoid the estate tax. Put another way, the estate tax is one of the least efficient taxes, imposing huge compliance costs for each dollar of revenue collected, relative to other taxes.

More on estate taxes here.