When a million isn't enough
Less
than a week after a report from the Institute
on Taxation and Economic Policy [ITEP] showed that Rhode Island has
a regressive tax structure that benefits the top one percent of earners at the
expense of the lowest 20% of earners, members of the Rhode
Island Senate introduced a bill, S2064, to lower the taxes paid by
dead millionaires.
From the band Dead Billionaires
If signed into law, the bill would increase the net taxable estate exemption to $4 million for deaths that occur on or after January 1, 2025. It is supported by Senators David Tikoian, Ryan Pearson, Hanna Gallo, John Burke, Matthew LaMountain, Valerie Lawson, Walter Felag, Dawn Euer, Frank Lombardo, and Frank Ciccone, all Democrats.
Note that this bill is being introduced at
a time when Governor Daniel
McKee, Senate President Dominick
Ruggerio, and Speaker of the House K.
Joseph Shekarchi have announced a period
of fiscal
belt-tightening following the end of
Covid-era federal relief dollars.
So what is the estate tax?
The estate tax is paid by dead millionaires. No one in Rhode Island who dies with an estate worth less than a million dollars pays the estate tax. No living person has ever paid one penny in estate tax.
When a millionaire dies, their estate typically consists of real estate, stocks and bonds, mutual funds, and other financial assets. Before these assets are passed onto their inheritors, a tax is assessed, but only if the estate is worth more than $1.5 million.










