Posted: Tuesday, January 17, 2012 10:03 am
WASHINGTON D.C.- Following Tennessee Governor Bill Haslam’s announcement regarding his legislative priorities for 2012, the American Family Business Institute (AFBI), Americans for Tax Reform (ATR), Americans for Prosperity (AFP), National Taxpayers Union (NTU), and the Beacon Center of Tennessee, released the following statement: “Governor Haslam is right; the Tennessee death tax is a job killer that chases family businesses away from the state. However, even with an increased exemption Tennessee will still be at a competitive disadvantage to States like Florida that do not have death taxes. While we applaud the Governor for taking a step in the right direction to make estate tax reform a priority, we urge him and the legislature to completely repeal the tax rather than raise the exemption.”
The Associated Press reported that Tennessee Gov. Bill Haslam will include reductions to Tennessee’s inheritance tax in his legislative priorities for the year. Haslam stated, “There’s a whole lot of people who used to live in Tennessee who don’t anymore because it’s cheaper to die in Florida. I can tell you a whole lot of people who spend less than half their year in Tennessee to avoid that estate tax specifically.”
Many seniors flock to states like Florida, to avoid taxes on their hard-earned wealth. According to a recent study by Art Laffer, a world renowned economist, Tennessee’s inheritance tax is the single greatest reason why wealthy people do not want to live in Tennessee. The Tennessee tax burden ties up working capital in expensive estate plans and life insurance policies.