DOVER, Del. (AP) - Republican lawmakers have introduced legislation to eliminate Delaware’s estate tax effective July 1.
The legislation introduced Thursday aligns with a recommendation by a state panel formed by Democratic Gov. Jack Markell.
The panel, which studied how to make Delaware’s revenues more predictable and aligned with economic conditions, noted that the estate tax is volatile and brings in little money - only $1.3 million last year.
Officials also note that the estate tax could actually be a drag on revenues by prompting wealthy individuals with very large estates to move elsewhere, taking their taxable personal income with them.
The review panel said the estate tax is so small that the movement of only a few very-high income individuals might reduce personal income tax revenue by more than total estate tax revenues.
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