CEO Musings: Is the Estate Tax a Voluntary Tax?
by Mike Hoffman, Esq., CPA
After languishing between $3.5 trillion dollars of total tax revenue from 2014-2020, the U.S. tax collections hit a record $4.05 trillion in fiscal year 2021. During that time nearly 2600 estates paid $18.4 billion dollars in taxes, which was almost double the estate taxes collected in 2020.
Out of the almost 3.5 million people who died in 2021, only .8% were subjected to estate tax. Of those, the IRS said 369 people accounted for 61% of last year’s estate tax revenue.
The point is, if you are one of the very few who might be exposed to this confiscatory tax (currently 40%), that is a list you don’t want to be on. As I have said many times, the federal estate tax is a voluntary tax, one which can be eliminated through appropriate planning.
As the Democrats continue talking about expanding the estate tax to achieve wealth equality, and the Republicans continue to propose the appeal, do you really want to sit on the sidelines and risk a significant portion of the family wealth that you have accumulated?
If your answer is no, please reach out to Mike Hoffman or Bobby Hoffman to discuss your options.
