How to Keep the Wealthy From Fleeing Connecticut
When it comes to saving on taxes the wealthy have to continually consider all their options because lawmakers never seem to stop pushing for more legislation aimed at making the wealthy pay more taxes. Lately, it seems that there are more and more reports of the nation’s wealthiest individuals living in high-tax locations deciding to pack up their bags and head for states that are more tax-friendly.
Connecticut continues to face this problem because the state reportedly continues to spend more than it should. Because of the overspending the state keeps creating new efforts to squeeze more taxes from its wealthiest citizens. The problem is, many of these wealthy individuals are moving out. According to a recent report in the Hartford Courant, two of the biggest offenders are Connecticut’s estate tax and it’s gift tax.
Connecticut relies on wealthy taxpayers more than most states, but the number of wealthy individuals coming to the state is slowing down, while the number of wealthy taxpayers leaving is increasing. In fact, after the state introduced a huge tax increase in 2011, more than 27,000 residents moved out and took close to $4 billion in annual adjusted gross income with them.
Perhaps the best way to deter the exodus of high net worth individuals is to repeal, or at least reform the estate tax and to completely eliminate the gift tax, as Connecticut is the only state with a tax of that kind.
www.courant.com/opinion/op-ed/hc-op-smith-repeal-ct-estate-tax-0515-20160513-story.html
10 Strategies When Handling an IRS Audit
10 Strategies When Handling an IRS Audit The IRS is using new technology to process tax returns and conduct tax audits. As more people are submitting returns through Electronic Filing, the IRS efficiency in processing returns is improving. They also have more data in their system to identify tax returns with non-compliance issues. The IRS…
When to Exercise Your Stock Options
When to Exercise Your Stock Options “Deciding when to exercise your option can be a complex decision. Therefore, it is important to know the rules before you decide to cash in your options.” Know the Rules Employee stock options can provide you with a substantial source of deferred income and permit you to control the…
Accounting Joke Videos
Accounting Joke Videos Insanity So, you’re saying it’s ok. Insanity, is a side-effect of tax law. Accounting Classes I tried taking a course on ethics for my CPE credits, but everything contradicted what I learned in my accounting classes. Feelings So, you’re saying that I should own my feelings… but my accountant said that it…
Series LLC: Simplify Your Legal Entity Structure
Series LLC: Simplify Your Legal Entity Structure By Ron Cohen, CPA, MST Partner Greenstein, Rogoff, Olsen & Co., LLP Many businesses are being set up as a Series LLC where multiple projects are involved. Rather than setting up an entirely new Limited Liability Company (LLC) for each project, a Series LLC can be formed, with…