We believe that hammering away at the progressive tax system without addressing this growing disparity will only make this situation worse than it already is. We base our opposition to estate tax repeal on our support of a progressive tax policy. We question the policy of tax relief costing billions of dollars by helping those who need it the least while doing next to nothing for the majority of the population, many of whom have no pensions or little other retirement income. Repeal of the estate tax would seriously undermine the progressive nature of our tax code by granting additional tax relief to the wealthiest Americans. Instead of using the projected surplus for a tax break for some of the wealthiest in the country, Congress can make significant inroads in solving many of the social and economic ills in our society.
States also stand to lose considerable revenues from the estate tax repeal.
Many states have taxes that piggyback on the federal estate tax and will lose revenue since there are no provisions to make up for this loss. The loss of revenues in the Treasury will seriously impact the federal and state level of support of services - many of which are provided by nonprofits through government funding. While studies have indicated that tax incentives are not the only reason people give, they almost always have a significant influence over how much people give. NCNA's Response NCNA's board has clearly articulated the role of the nonprofit sector in society - is to serve as the vehicle that improves people's lives by working on issues of social justice and equity. If ever there was an issue of social and economic justice, this is it.