The potential repeal of Tennessee’s inheritance tax has once again drawn national attention. Last week, the Wall Street Journal published an article and a letter to the editor regarding this matter. This week, the Institute on Taxation and Economic Policy has published a scathing rebuttal of an analysis done by Arthur Laffer and Wayne Winegarden.
In stark contrast to the Laffer article, the ITEP article concludes that repealing the inheritance tax will not significantly increase jobs in Tennessee. I sincerely doubt that Governor Haslam and the legislature believe that repealing the inheritance tax will create 220,000 new jobs. Rather, they perceive the tax to be unfair and realize that some of our wealthiest citizens have left Tennessee to avoid the tax.