But Gray also told interviewers through the years that he was not a full-time resident of his beloved Connecticut. The reason, he said, was that Florida has no inheritance tax, and Connecticut's tax ranks among the highest in the country.
So Gray switched his official residence to Florida — and told a Courant reporter he had the plane tickets to prove it.
Republicans say that Gray, who died in Hartford last month at 89, is an all-too-common example of how Connecticut's tax policy drives away its richest residents.
via www.courant.com
It's a burdensome process, but yes, people with estates valued at over $2M have taken steps to change their domicile to a state without estate tax.
What's interesting is how far apart the two sides are on this issue. The Republicans want Gov. Rell's plan of a repeal of the estate income tax in exchange for higher "sin" taxes on cigarettes and a higher tax on incomes over $500K . The Democrats want to add a 30% surcharge on the estate tax. Not much room for compromise.
Maybe a better compromise would be to remove the "cliff" at $2M and peg the Connecticut exemption at the federal level? Seems logical to me.
