“Sopranos” star James Gandolfini’s death last month came as a shock to fans and probably produced sticker shock within the actor’s family.
The tax bill on his $70 million estate could total $30 million, reports the New York Daily News. And while that is bad news for Gandolfini’s kin, those in Washington who are working toward repealing the estate tax are smelling opportunity.
Palmer Schoening, president of Schoening Strategies, is a lobbyist trying to get rid of the estate tax, dubbed the “death tax.” He, first, blames the Gandolfinis predicament on poor estate planning. “I think it’s mostly because he didn’t expect to kick the bucket, he was only 51,” Schoening said of Gandolfini’s messy will.
But also, as the law stands now, 40 percent of inheritance must be paid to Uncle Sam, if it’s more than $5 million. “It looks like his family is going to have to start selling off assets because…even a mob boss doesn’t keep $30 million in cash laying around,” Schoening continued.
While Gandolfini’s name is a familiar one, most of those impacted by the death tax are business owners and farmers, Schoening said. “It looks like they’re rich on paper,” he said. “But really they don’t have much in liquid assets to pay the death tax, so they have to sell off part of the farm, they have to sell off equipment or they have to fire people–it’s really a horrible situation.”
Earlier this month, the “Death Tax Repeal Act of 2013” was introduced in both houses, spearheaded by Sen. John Thune, R-S.D., and Rep. Kevin Brady, R-Texas. While the legislation is more heavily supported by Republicans, some Democrats–like Rep. Mike McIntyre, D-N.C.–have jumped on board. Rep. Kristi Noem, R-S.D., noted that it was this issue that compelled her to run for Congress, after her father died in a farming accident, and her family was forced to take out a loan to hold on to their land.
In Gandolfini’s case, he was a big name in Hollywood, but also a self-made man. “The thing that we want to stress is that he had humble upbringings and now the IRS is after him for achieving the American dream,” Schoening argued. “He was an awesome actor, he worked hard, built up his wealth and the government takes half of it.”
