Legislative / Regulatory | Taxation

Annapolis update: CPAs support estate tax reforms

Myrna Mitnick, CPA, MBA, PFS, of Leonard J. Miller & Associates, Chtd., testified before the House Ways and Means Committee on behalf of the MACPA in support of House Bill 186, “Estate Tax: Recoupling with Federal Law,” sponsored by Del. Susan Krebs.

The MACPA has long supported efforts to recouple the estate tax in Maryland.

Myrna’s expert testimony explained how current Maryland estate tax provisions have unintended tax consequences that can impact surviving spouses and middle class families. Individuals who plan their estates based on federal tax laws are caught off guard by large estate taxes due in Maryland.

Pictured are Del. Susan Krebs and Myrna Mitnick.

We have heard from a number of our members that the decoupling on estate taxes is burdensome not only to CPAs, but more importantly their clients due to the increased complexity and cost of compliance. It has created difficulties for individuals in tax planning and drafting of wills, because of the possibility of having a Maryland tax liability but no federal tax liability.

Two widely recognized indicators of employing good tax policy include “simplicity” and “fairness.” There are several versions of reform to Maryland estate tax proposed in the General Assembly this year. The MACPA supports any of these bills, because they take steps in the right direction and incorporate these two important principles.

We extend our thanks to Myrna and all of our members who volunteer and take time out of their busy schedules to travel to Annapolis and testify on these important issues on behalf of the profession.

Next week, we expect to be back testifying on combined reporting.

Prior legislative updates: