By Bob Katzen

Senate 5-34, rejected an amendment that would increase from $2 million to $5 million the amount of money that is tax exempt from the value of a person’s estate when calculating the state’s estate/death tax that a person is required to pay following their death before distribution to any beneficiary. The increase to $5 million would be implemented over three years.

Most Republicans are against any such tax and coined the name “death tax” to imply that the government taxes you even after you die. Most Democrats support the tax and call it an “estate tax” to imply that this tax is mostly paid by the wealthy.

Amendment supporters said that Massachusetts is one of only 12 states that have an estate/death tax and that the Bay State’s is the most aggressive of the 12. They said that in light of the high value of houses, with the average home price more than $500,000, the $1 million threshold of this “unfair and regressive” tax is too low and noted the federal tax exempts the first $12 million. They noted that Massachusetts is losing many residents who move to Florida and other states where this tax does not even exist.

Sen. Jamie Eldridge (D-Marlborough) Senate Chair of the Committee on Revenue, said he voted against the increased exemption because the Legislature in a bipartisan manner already raised the threshold last session from $1 million to $2 million, providing tax relief to many middle class and working families. “Further raising the threshold would not only further reduce state revenue at a time when federal budget cuts are looming, but such a change would only make our tax system more regressive, disproportionately benefiting Massachusetts’ wealthiest families,” said Eldridge.

(A “Yes” vote is for increasing the exemption to $5 million. A “No” vote is against increasing it.)

Sen. Patricia Jehlen No