Discuss what changed at the end of 2004 that caused some states to decouple from the federal estate tax.
Before 2001, the federal estate tax provided a credit for state tax and inheritance taxes. This credit offset up to 16% of an estate's value against federal taxes and gave an incentive to states to impose estate or inheritance tax. However, the 2001 tax act phased out the credit and replaced it in 2005 with a less-valuable deduction. Some states decoupled from the federal law, either setting up a ...
Economic Growth and Tax Relief Reconciliation Act 2001 and its effect on decoupling is explained in a structured manner in this response. The answer includes references used.