Connecticut Senate Bill SB00599

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Concerning A Phase-out Of The Estate Tax.

Impact

The phase-out of the estate tax is expected to have significant implications for both individuals and the state revenue system. Proponents of the bill argue that abolishing the tax will ease the financial burden on families during a challenging time and encourage wealth retention within the state. By potentially increasing disposable income for beneficiaries, supporters believe it could stimulate the economy. Conversely, this phase-out may result in reduced state revenue, which could impact funding for essential services and initiatives that rely on tax income.

Summary

SB00599 is proposed legislation aimed at phasing out the state estate tax over a five-year period. Introduced by Senator Boucher from the 26th District, this bill seeks to amend Chapter 217 of the general statutes. The primary objective is to eliminate the estate tax, which is levied on the transfer of an estate upon the death of an individual, thereby impacting how wealth is transferred between generations and potentially benefiting heirs financially.

Contention

Debates regarding SB00599 have surfaced concerns about equity and the influence on wealth disparity. Opponents of the estate tax phase-out believe that eliminating this tax could exacerbate wealth inequality by disproportionately benefiting the wealthiest families who often possess significant estates. Advocates for maintaining the estate tax argue that it plays a vital role in creating a fairer taxation system and ensuring that wealthier individuals contribute their fair share to public resources and services.

Noteworthy_points

Additionally, discussions surrounding the bill may touch on the effectiveness of the estate tax as a tool for social equity and addressing the funding of state programs. Thus, while the bill intends to alleviate tax burdens, it raises broader conversations about fiscal policy and social responsibility in taxing estates.