“TRIM commends the efforts of both Rep. Wilson and Sen. Goodman and supports the permanent elimination of all death taxes,” said Ray McCarty, executive director of TRIM, who offered testimony on both bills. “However, I have pointed out to the sponsors that removing these statutes could result in no savings for the taxpayer and would result in future death taxes being payable in full to the federal government.”
The federal government phased out the credit for state death taxes as part of the phase-out of the federal death taxes. Currently, Missourians do not pay state death taxes and pay a reduced federal tax.
In 2011, barring any further action by Congress, the federal death tax will be reinstated in full. At that time, the state credits will also be reinstated.
“If Missouri leaves these statutes in place, the taxpayer would pay no more in taxes, but part of the taxes would flow to the state,” McCarty said. “If the statutes are eliminated, the federal government would receive the entire amount of death taxes.”
TRIM urges the House and the Senate to send a resolution to the Missouri Congressional delegation supporting the full and complete repeal of the federal estate tax.
“If the federal government permanently ends the death taxes, we could then safely remove the state estate tax statutes and taxpayers would be free of the death taxes permanently,” said McCarty.
Originally incorporated in 1940, TRIM is the oldest and most respected organization dedicated to providing a one-stop source for vital economic and tax research information. TRIM is a division of Associated Industries of Missouri.