Do Not Repeal the Estate Tax Estate tax repeal would remove a powerful incentive for giving, affecting funds available to foundations and direct bequests to charities. It would also reduce funds needed for critical human services programs and increase the disparity between rich and poor. While we would prefer a lower floor, the Santorum-Lieberman bill is a good starting point. A sample letter is provided below. In addition, the tax package should maintain the estate tax as a powerful tool that encourages giving from those that can best afford it.
Studies show taxpayers that receive a deduction are more likely to give, regardless of income.
Since the vast majority of nonitemizers are middle to low income Americans, this proposal would both increase giving and provide much needed tax relief for lower income taxpayers who give back to their communities through charity. Repeal of the estate tax would result in drastic reductions in giving, affecting foundations that give grants to many charities, as well as religious congregations, educational institutions, the arts and health care providers. It also helps maintain equality in society by having those the system has most benefited give something back to help others. American cannot afford to repeal the estate tax.