Raise the state's estate tax exemption to federal level

The New Jersey Estate Tax raises an estimated $675 million, or about 2.5% of the total budget revenues based on taxing all estate value over about $650,000. Yet, the U.S. federal government exempts the first $5 million. 

New Jersey has 2 of the top 10 wealthiest counties in the nation. And New Jersey is a relatively high cost-of-living state. So people's homes tend to inflate their net worth and there are plenty of people with net worth over $5 million.

So I suggest that such a low estate tax exemption of $5 million sounds more appropriate than the current $675,000 NJ tax exemption level.

Talk about sticking it to the little guy ... the New Jersey Estate Tax bits hardest on the first bite: The first $52,000 above the $675,000 exemption is taxed at 37%. The first $52,000 of your estate will be taxed at 37% !!!! ... That's right thirty-seven percent at the bottom of the estate size!!! Then it drops down to 4% !!! ... That's right four percent!!! ...  and rises slowly from there. 

If national statistics hold in New Jersey, then half, or more, of the total net worth of NJ residents are those estates worth more than $5 million. So raising our NJ estate tax exemption level from $650,000 to $5 million likely will cost the state an estimated $350 million or just over 1% in tax revenue. That's would be a small concession by the state in return for a lot of financial security for the average Jerseyan ... small businessperson, family.

Raise the NJ estate tax exemption to the first $5 million.

By Steven J. Reichenstein