A bill that would enable Rhode Islanders to pay less in inheritance taxes was the subject of a Senate Finance Committee hearing Tuesday. The bill is one of a number of tax proposals that will be debated during this session.
Independent Senator Edward O’Neill of Lincoln wants to raise the estate tax exemption from $875,000 to $2 million. He says the current threshold has a negative effect on residents inheriting money from deceased relatives.
“I believe we’re losing population to states where people can pass on and leave their estates intact for family members whereas there’s a substantial penalty here in Rhode Island.”
The Finance Committee isn’t expected to vote on the estate tax bill until later in the session. Meanwhile, a labor-backed coalition is pushing a proposal to raise the state income tax by 2 percent for people who earn more than a quarter million dollars a year.
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