At long last, Virginia is on the verge of repealing its death tax. The Senate and House of Delegates finally found something they could agree upon, passing compromise legislation yesterday. Gov. Timothy M. Kaine has indicated his support for repeal, so his signature should be a formality.
As Death Tax foes have argued, the tax on inherited estates posed a huge burden to farmers and family businesses. Having already paid taxes on salaries, profits and dividends for years, family business had to pony up one more time, often by taking on a crippling load of debt or selling the land/enterprise outright.
As House Speaker William J. Howell, R-Stafford, said in a press release yesterday, Virginia’s top-rated business climate just got better. Citing the state’s Number One “Best State for Business” ranking by Forbes magazine, he said: “Repealing unfair taxes and improving our regulatory framework are precisely the kind of positive state tax and regulatory actions enacted over the past decade and more that enabled our Commonwealth to garner this latest accolade.”