Signatures are currently being gathered for a potential November ballot measure that would abolish Oregon’s estate tax.
Kevin Mannix is spearheading a group, Common Sense for Oregon that hopes the tax. The Death Tax Phase-Out Initiative phases out the Oregon estate tax by reducing the existing tax by 25 percent in 2013, 50 percent in 2014 and 75 percent in 2015.
As of January 1, 2016, the tax would be zero.
With a July 6 deadline, supporters say they have collected about 75,000 signatures. A total of 87,213 valid signatures are needed. Locally, candidate for Oregon Senate District 54 Tim Knopp is leading an effort to help with those remaining signatures.
Currently Oregon’s estate tax sets the first million as exempt. The tax rates start at 10 percent for the first dollar over $1 million and increase to maximum rate of 16 percent for estate values over $9.5 million. There is a natural resources credit that allows the deduction from an Oregon estate of up to $7.5 million in value of certain farm businesses, forestry businesses, or fishing businesses that make up at least 50 percent of the adjusted estate value.
While the level of tax may not seem like much as most estates are not worth more than a million dollars, the tax itself, no matter who has to pay, is unfair. Money you’ve earned and assets you have accumulated throughout your life have been taxed by numerous levels of government. Why should you and your heirs once again be taxed on assets including land, buildings, equipment and all other forms of property you’ve already paid taxes on when you die?
The ever-increasing instability and inability for families to plan for the future adds to the already staggering burden caused by already high taxes.
While heirs of very wealthy estates would likely be able to make a few phone calls and drop a few investments to come up with the cash due on the death tax, the small manufacturer’s heirs would be forced to sell off the company’s specialty machines and heavy equipment in order to pay the tax. Ultimately, the most rational economic choice for many of these families will be to give up control of the business altogether.
The burden of expensive estate planning and ongoing estate tax payments creates a constant drain of time and cash, both of which could be reinvested into the business to create new jobs.
You may sign the petition at http://endoregondeathtax.com/sign-the-petition. pha
