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Oregon Transformation
The federal death tax rate in this country is currently 35%. There are 22 states that impose an additional tax on top of the federal rate with a state death tax, including Oregon.
So, for the folks who qualify for this death tax, what is the tax penalty for dying in the state of Oregon? Nearly half of a lifetime’s savings.
This table shows combined federal and state death tax rates, according to the Wall Street Journal, for all 22 states:
| State (w/rank) | Rate % | State (w/rank) | Rate % |
| 1 New Jersey | 54.1 | 6 Kentucky | 45.4 |
| 2 Maryland | 50.9 | 6 Illinois | 45.4 |
| 3 Indiana | 48 | 6 Hawaii | 45.4 |
| 4 Washington | 47.4 | 6 Minnesota | 45.4 |
| 5 Nebraska | 46.7 | 6 Massachusetts | 45.4 |
| 6 Delaware | 45.4 | 6 Maine | 45.4 |
| 6 Oregon | 45.4 | 7 Iowa | 44.8 |
| 6 North Carolina | 45.4 | 7 Pennsylvania | 44.8 |
| 6 New York | 45.4 | 8 Connecticut | 42.8 |
| 6 Rhode Island | 45.4 | 9 Tennessee | 41.2 |
| 6 Vermont | 45.4 | 10 Ohio | 39.6 |
Oregon has the sixth highest combined death tax rate in the country.
Why is this significant? A 2008 study by the Connecticut Department of Revenue Services found that:
“… the states without an estate [death] tax produced twice as many jobs from 2004-07 and had a growth rate 50% faster than those with estate taxes.”
The “folks” that qualify for the death tax penalty in Oregon are mostly family business owners, ranchers, farmers and retirees.
It’s nearly impossible for a family business, family farm or ranch to survive for the next generation when the tax collector takes a 45% cut.
The logical decision would be to move to a state that doesn’t have a death tax. Those states are welcoming the businesses, the jobs, and the competitive advantage.
Sources: http://online.wsj.com/article/SB10001424052748703960804576120050963075390.html [2]
Learn more by visiting the Oregon Transformation website [3]