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DOUBLE TAKE
The Federal Reserve Bank of Boston released this week its much anticipated follow up to its landmark “Color of Wealth” report from 2015. The new analysis, years in the making, takes a deeper dive into family wealth by surveying more than 5,000 Massachusetts residents. One data point that caught our attention because it wasn’t studied last time: About one in six families expect to receive an inheritance in the future. It’s another way to look at generational wealth and the ability for families to pass on their assets. The study found that only 3.7 percent of Latino families and 4.3 percent of Black families expect to receive one, compared to 18.6 percent of white households and 13.1 percent of Asian American households.
It didn’t take long for the progressive Massachusetts Budget & Policy Center to seize on that part of the Fed study as a reason to keep the estate tax. Their argument: proceeds from the tax — which is expected to bring in more than $700 million a year — could be used to address economic disparities. MassBudget will have a fight on their hands: Major business groups say the estate tax is driving wealthy people out of the state, and they want it eliminated. This issue could be the next big tax-related showdown when lawmakers start their new two-year session in January.
