Media

An interesting article emerged in the Oregonian recently about a bill that may hike up estate taxes in Oregon. In fact the increase is so great that Oregon would find itself with the second highest tax rate on estates in the nation. However, what will really raise your eyebrow about all of this is that it is gaining conservative support.

The reason that politicians like Kevin Mannix are in support of this bill is actually because they would like to see the “death tax” repealed altogether. They are betting that this substantial hike in the estate tax rate will provide enough opposition momentum to have the tax eliminated completely.

The way it stands presently Oregonians are taxed (upon death) on any portion of their estate that exceeds one million dollars. Furthermore, if the estate exceeds five million dollars than they will incur a federal tax as well. The problem with taxing estates below the five million dollar value is that it makes it exceedingly difficult to bequeath a business from parents to children. In fact many property based business owners (farmers, loggers etc.) in Oregon already find it impossible to pass on their businesses without first having to sell of portions of their land to settle the tax burden.

The solution to all of this is to marry the state tax with the federal tax at five million. This alleviates the burden of the death tax on the majority of Oregonians and improves the business climate for larger family run corporations. Hopefully, in the long-run, we will see both a state and federal death to the death tax, but until then, marriage is the best option.