NC House Bill 101 Aims to End the Death Tax

by Erik Soderstrom on March 31, 2013

Death shouldn’t be a taxable event. At least, that’s the consensus of the 23 Republican House members who have signed on as co-sponsors to House Bill 101 which would repeal North Carolina’s “death tax.” The companion bill in the Senate boasts 29 co-sponsors, a majority of the Senate.

Americans for Prosperity is actively supporting the bill, and notes that just “16 states impose an estate tax” on their residents. They have made elimination part of their 2013-2014 legislative agenda.

Unlike much of the legislation coming out of Washington, North Carolina’s House Bill 101 is admirably succinct, stating quite plainly, “Article 1A of Chapter 105 of the General Statutes is repealed.”  For those who are unfamiliar, this is the section of the law that defines and mandates the estate tax.

For those unfamiliar with the death tax, or estate tax, this is a statute that imposes a tax on the estate of deceased residents. For small business owners, this means all of the property owned by the business is assessed, valued, and taxed when the business owner dies. This double taxation generates little tax revenue, but can sink the small businesses it impacts, especially if the owner’s death is sudden and unexpected.

Although the Heritage Foundation is focused on federal policies, their series of videos highlighting the economic pitfalls of a federal death tax—two of which are embedded below—is equally relevant to the current debate in North Carolina. The only difference is the source of the economic drag is our state legislature rather than Washington, DC.

About Erik Soderstrom

Erik Soderstrom has written 24 articles for CarolinaRight.

Erik is the founder of CarolinaRight. He is also a member of the board of Students for Concealed Carry. In addition to his work here, Erik writes at his own site and at BlogCritics.

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