An Estate Tax Ruling With Big Implications
The US Supreme Court rules on the impact of estate taxes on life insurance benefits in closely held businesses. The High Court ruled yesterday that contractual agreements to purchase shares of a deceased CEO do not diminish the value of those shares, which must reflect the corporation’s fair market value when calculating the federal estate tax. Companies are now prohibited from deducting a contract agreement to buy a CEO’s shares from life insurance proceeds.
Illinois has a 2025 budget. Democratic Gov. JB Pritzker signed the $53.1 billion package this week. It enacts $1.1 billion in revenue increases, including a higher tax rate for sportsbooks’ profits and a cap on the percentage of the sales tax retailers can retain to offset administrative costs.
A sales tax hike for Denver Health Medical Center? Given the hospital’s funding crisis, the hospital’s CEO asked a Denver City Council committee to advance a ballot question to voters requesting a sales tax increase. The additional revenue would raise $70 million annually to help cover the center’s costs for emergency services, paramedics, clinics, and other operations. It would cost consumers an extra 3.4 cents on a $10 purchase.
On Capitol Hill next week. The Senate Budget Committee will hold a hearing Wednesday, June 12, on Wall Street and options to raise revenue. Also Wednesday, the House Ways & Means Trade Subcommittee will hold a hearing on trade programs that are set to expire in 2025. The House Budget Committee will hold a hearing on Thursday, June 13, on Medicare and Social Security solvency and the potential impact on the federal budget.
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