Texas House Bill HB4453

Texas 2021 - 87th Regular

Caption

Relating to imposing a state estate tax and using the revenue generated by the tax to provide payments to parents.

Impact

If enacted, HB4453 will amend the Texas Tax Code by adding provisions for estate taxation, marking a significant change in state fiscal policy. The introduction of this tax sets a precedent for the state government to utilize estate taxes as a means of generating revenue for support programs. The funds collected will directly contribute to a specific initiative aimed at aiding new and adoptive parents, potentially fostering family stability and growth. This highlights a strategic shift in how the state governments can leverage tax mechanisms to address social needs.

Summary

House Bill 4453 proposes to impose a state estate tax in Texas, specifically targeting the estates of individuals who die as residents of the state. The legislation sets a tax rate of five percent on the taxable estate value, with provisions for the administration and enforcement of this tax handled by the comptroller. The primary purpose of generating revenue through this tax is to fund one-time payments to parents who give birth to or adopt children in Texas, aimed at supporting families during significant life changes. This payment is initially set at $1,000 and will be adjusted annually based on the Consumer Price Index, reflecting an intended commitment to support family growth.

Contention

The proposed estate tax has led to discussions about its implications on wealth distribution and financial burden on families. Critics may raise concerns about the fairness of taxing estates, especially during times of grief following the loss of a loved one. Supporters of the bill argue that the benefits provided to parents could stimulate economic welfare through increased financial support for families. However, the bill's approach to funding such social programs through estate taxation raises questions about its long-term sustainability and the possible need for robust measures to ensure compliance and equity in tax collection.