Taxation burden shifted
From a state budget perspective, eliminating the state estate tax estimated to generate $52 million in revenue next year doesn’t make good sense unless one’s goal is to accelerate the growing wealth gap between high-income households and everyone else.
Considering that wealthy households and their wealth are on the increase, revenue lost in future years from such a proposal will only be more damaging to our state’s finances. Coupled with another Republican proposal to reduce personal and corporate income taxes, one must conclude that Republicans have a political agenda to shift the burden of taxation from the wealthiest taxpayers to the rest of the state’s population. Perhaps, this is their way of thanking the wealthy for putting them in office.
Thus far, all Republican proposals to change the state’s tax system (estate, income and sales taxes) are a serious blow to progressive taxation. Despite all historical evidence to the contrary, Republicans continue to hold fast to the economic theory that lower taxes are a sure-fire path to economic growth.
John F. Bridgers