As my readers will attest, I’m no fan of California tax policy. But there is one area where the Golden State is tied for the BEST tax policy — we have ZERO estate and inheritance taxes. Don’t be too impressed — we are tied with 30 other states that now have no such tax — and that number is growing. Check out the map at the bottom of my article from the Tax Foundation.
I’d love to give California politicians credit for repealing the CA estate tax in 1982. But, to no one’s surprise, this repeal was done by the VOTERS — over the OBJECTIONS of our Democrat-controlled state legislature and Big Government bottom feeders. Props 5 and 6 repealing such taxes passed easily, with over 60% of those casting ballots voting approval.
http://ballotpedia.org/California_Propositions_5_and_6,_Repeal_of_Inheritance_and_Gift_Tax_Laws_(June_1982)
It’s interesting to read the ballot arguments for and against the two props — and to see who signed the arguments. The proponents advocating the repeal of this tax were Tea Party people — before there was a modern Tea Party movement. They make the same plainspoken grassroots arguments, and had a lack of any Establishment support.
The opponents reveal all. Leading the charge to keep our high taxes was the “nonpartisan” League of [Progressive] Women Voters. I love to embarrass them in public forums by asking them this question — “Has your objective, nonpartisan organization EVER opposed a tax increase, or supported a tax cut?” Doubtless they did at least once, but to date no one can recall such an instance.
The other “usual suspect” is the PTA — who also signed the opposition ballot arguments. Same story. Led by Big Government activists, the PTA’s state and local leadership supports tax increases left and right (well, left end left).
As you would expect, most of the states that still have such taxes are run by liberals. Washington state, which has zero state income tax, has the worst minimum and maximum estate/inheritance tax rates. The rest are mostly concentrated in the Northeast.The only Southern state that still has such a tax is Tennessee — and they’ve already voted to phase it out by 2016. Indiana repealed their estate tax in 2013. Some other liberal taxing states are instituting minor improvements in rates and exemptions, but they can’t let go — much to the delight of the tax-free states beckoning their wealthy retirees.
Ain’t competition (via federalism) grand?NOTE: Apparently this map graphic is intended for the legally blind. To see this map properly displayed:
This entry was posted
on Saturday, May 31st, 2014 at 9:20 am and is filed under Blog Posts.
