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.
Not to be outdone, estate tax bill co-sponsor, Representative Brian Rea (Republican, District 53, Smithfield), has introduced an even more extreme version of an estate tax cut. As of this writing there is not bill number attached.
Press release:
Rhode Island House Representative Brian Rea (Republican, District 53, Smithfield) introduced legislation (LC004847) to incrementally increase Rhode Island’s estate tax exemption threshold until it is equal to the federal estate tax exemption, which is projected to be $13.61M in 2024.
Rhode Island has one of the most aggressive estate taxes in the region. In 2023, Rhode Island only exempted the first $1.7M of an estate. Beyond that point, the estate is taxed on a sliding scale of 0.8% - 16% based on the value of the estate after the exemption is applied. Introducing this legislation to increase the exemption threshold not only helps Rhode Island retirees, but also protects families of small business owners, whose assets on paper may put them beyond the exemption limit -- creating a financial burden on the surviving family members, who may have to sell off assets to be able to pay the associated tax.
“It is a disservice to the people of Rhode Island for the government to tax what has been gained during a lifetime of hard work,” said Representative Rea. “While paying taxes is our responsibility, double taxing decedents’ property is not only improper - some might say it is outright criminal. Rhode Island is among 12 or so states who still apply an estate tax. Maintaining this type of revenue stream is not forward-thinking, as it creates an exodus of knowledge and experience within our well-to-do and senior populations. It can also be argued that this tax stifles economic growth and suppresses wages.”
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I will note that Rea is not being truthful when he says the "decedents" pay estate taxes. The taxes are paid only by dead millionaires.
A bipartisan group of Rhode Island House of Representative members introduced the House version of the estate tax bill, H7487, which upon passage would "increase the net taxable estate exemption to $4m for deaths that occur on or after January 1, 2025."
It's backed by Representatives Gregory Costantino, Samuel Azzinaro, Jacquelyn Baginski, Arthur Corvese, Joseph Solomon Jr., Raymond Hull, Brian Rea, Michael Chippendale, Edward Cardillo, and Anthony DeSimone.
thanks for calling attention to this, giveaways to the wealthy rarely get notice elsewhere. After all the tax breaks already given to business and wealthy interests it is never enough - for example GoLocal is proclaiming rankings that rate RI low on our business climate. Perhaps if RI taxpayers matched the value of the estate to give to heirs and re-instituted slavery for free labor we could get a higher business rating, but even then they would probably say we need to do more to attract business - maybe get the riffraff off the rods so the wealthy could travel faster
Call me naive, but I’m surprised to see a couple of those cosponsors. Lawson and Gallo were among the few to vote against increasing the limit for campaign contributions last year.
The RI legislature really does not understand economics, the only thing they seem to understand is contributions from wealthy folks. Reducing revenue from the estate tax makes no sense economically or fiscally. But the rich ask for it and RI legislators say sure. This will harm the budget and create zero new jobs. it is completely foolish.
The piece has been updated with additional information courtesy of the Economic Progress Institute.
Not to be outdone, estate tax bill co-sponsor, Representative Brian Rea (Republican, District 53, Smithfield), has introduced an even more extreme version of an estate tax cut. As of this writing there is not bill number attached.
Press release:
Rhode Island House Representative Brian Rea (Republican, District 53, Smithfield) introduced legislation (LC004847) to incrementally increase Rhode Island’s estate tax exemption threshold until it is equal to the federal estate tax exemption, which is projected to be $13.61M in 2024.
Rhode Island has one of the most aggressive estate taxes in the region. In 2023, Rhode Island only exempted the first $1.7M of an estate. Beyond that point, the estate is taxed on a sliding scale of 0.8% - 16% based on the value of the estate after the exemption is applied. Introducing this legislation to increase the exemption threshold not only helps Rhode Island retirees, but also protects families of small business owners, whose assets on paper may put them beyond the exemption limit -- creating a financial burden on the surviving family members, who may have to sell off assets to be able to pay the associated tax.
“It is a disservice to the people of Rhode Island for the government to tax what has been gained during a lifetime of hard work,” said Representative Rea. “While paying taxes is our responsibility, double taxing decedents’ property is not only improper - some might say it is outright criminal. Rhode Island is among 12 or so states who still apply an estate tax. Maintaining this type of revenue stream is not forward-thinking, as it creates an exodus of knowledge and experience within our well-to-do and senior populations. It can also be argued that this tax stifles economic growth and suppresses wages.”
------------------------
I will note that Rea is not being truthful when he says the "decedents" pay estate taxes. The taxes are paid only by dead millionaires.
A bipartisan group of Rhode Island House of Representative members introduced the House version of the estate tax bill, H7487, which upon passage would "increase the net taxable estate exemption to $4m for deaths that occur on or after January 1, 2025."
https://webserver.rilegislature.gov/billtext24/housetext24/h7487.htm
It's backed by Representatives Gregory Costantino, Samuel Azzinaro, Jacquelyn Baginski, Arthur Corvese, Joseph Solomon Jr., Raymond Hull, Brian Rea, Michael Chippendale, Edward Cardillo, and Anthony DeSimone.
thanks for calling attention to this, giveaways to the wealthy rarely get notice elsewhere. After all the tax breaks already given to business and wealthy interests it is never enough - for example GoLocal is proclaiming rankings that rate RI low on our business climate. Perhaps if RI taxpayers matched the value of the estate to give to heirs and re-instituted slavery for free labor we could get a higher business rating, but even then they would probably say we need to do more to attract business - maybe get the riffraff off the rods so the wealthy could travel faster
Call me naive, but I’m surprised to see a couple of those cosponsors. Lawson and Gallo were among the few to vote against increasing the limit for campaign contributions last year.
The RI legislature really does not understand economics, the only thing they seem to understand is contributions from wealthy folks. Reducing revenue from the estate tax makes no sense economically or fiscally. But the rich ask for it and RI legislators say sure. This will harm the budget and create zero new jobs. it is completely foolish.
This is obscene.