Resources IS and Catholic Charities op ed in Roll Call...12/16/09 Fair estate tax group letter...12/17/09 IS letter on the Estate Tax....12/14/09 IS Statement on the Estate Tax...12/4/09 Why the estate tax matters Proposed Legislation in the 111th Congress Estate Tax and Charitable Giving fact sheet Background

The estate tax, which expired at the end of 2009, provides significant revenues for the federal government and is a strong incentive for wealthy Americans to give back through their estates to support services vital to healthy communities and the wellbeing of Americans of all ages. Congress should reinstate the federal estate tax at no less than 2009 levels as soon as possible.

Status
The federal estate tax expired December 31, 2009 after Congress was unable to reach an agreement on either a permanent or short-term extension of the tax. The House passed legislation (HR 4154) on December 3, 2009 to permanently extend the estate tax at 2009 levels ($3.5 million exemption; 45% tax rate). Senate tax-writers have indicated that they intend to act quickly in the beginning of 2010 to work to restore the estate tax on either a permanent or temporary basis, although formal plans remain unclear.

In his FY 2011 budget request, President Obama Obama proposes permanently extending the estate tax at 2009 levels with no adjustments for inflation.

Why it Matters
The estate tax has been a critical incentive for people of great wealth to give back through their estates to support the work of charitable organizations that improve the quality of life in communities throughout the world. Giving through charitable bequests totaled $22.6 billion in 2008 (7% of total giving) and contributions from philanthropic foundations, many of which were created through bequests, accounted for another $32.65 billion.

The estate tax is also a vital source of revenue for the federal government, helping to fund a variety of federal programs and services, including those that are delivered through or in partnership with nonprofit organizations, vital to the people served by the nonprofit community. Repeal of the estate tax would result in the loss of over $1 trillion in tax revenues for federal government over the next ten years.

Last updated: February 5, 2010