To the Editor:

In your editorial defending the Connecticut estate tax (“Death and Taxes in Connecticut,” Aug. 27), you claim there has not been an exodus of seniors moving their legal residence to other states, primarily Florida, to escape the tax.  But estate tax attorneys testified before the Finance Committee (of which I am the ranking member) that this is exactly what is happening.
           
Retirees are motivated by taxes.  Connecticut reduced the movie production tax to induce producers to come here.  It stands to reason that the opposite also happens, namely that mobile retirees, not tied to jobs or schools, will move if the state imposes an estate tax. 
           
The tax will not bring in the $150 million revenue you mention.  In fact, the tax will reduce net state revenue over the long term.  The governor’s budget director testified that if 10 percent of retirees moved to Florida (a conservative estimate), there would be a net decline in state revenues.  For example, if one out of 10 retirees moves at 65 and dies in Florida 20 years later, the state loses all the income, sales and other taxes he would have paid over 20 years.  This more than offsets the estate tax on the other nine retirees who remain.

William H. Nickerson
            State Senator, 36th District
Greenwich