| For Immediate Release 4/20/2005 |
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| NCRP Condemns House Vote that Makes Repeal of Estate Tax Permanent | |||
| Tax Repeal would decrease federal revenue as well as significantly reduce charitable giving from the wealthy | |||
| WASHINGTON-The National Committee for Responsive Philanthropy (NCRP) today condemns the House voting to pass the Death Tax Repeal Permanency Act, a bill that makes the repeal of federal taxes on large estates permanent. Last week, House lawmakers voted 272-162 to pass H.R. 8, permanently repealing the estate tax. The tax, which brought the government $24.8 billion in revenue in 2004[nt1] , will be permanently repealed in 2010, costing the government about $290 billion in tax revenue in the next decade, according to the Associated Press. Without the tax in place, estate owners and inheritors would no longer have a tax break as an incentive to donate to charity. Economic research has shown that a permanent repeal would cost charities roughly $10 billion in lost donations, and dramatically reduce charitable estate bequests. The IRS has reported that charitable bequests have declined from $16.15 billion in 2001 and $17.83 billion in 2002 to $14.6 billion in 2003, a decrease that is due in part to recently implemented lower estate tax rates and higher thresholds for exemptions. "For an administration that claims to support the advancement of the nonprofit sector, its proposed gutting of the estate tax and the consequent loss of billions in charitable giving reeks of hypocrisy," said NCRP Executive Director Rick Cohen. " You can't claim to support the nonprofit sector at the same time that you deprive it of critical resources stimulated by the incentive of the estate tax." "Truly fair taxation would have been to keep the estate tax firmly in place," said Jeff Krehely, NCRP's deputy director. "This is yet another example of the reckless tax policies of the Bush Administration. This repeal places a heavier tax burden on the overwhelming majority of all U.S. tax payers, and also harms the charitable sector that is already reeling from federal funding cuts." The tax applies to fewer than 2 percent of Americans who pass away. This year, only estates worth more than $1.5 million for individuals, or $3 million for a couple, will be taxed. To find out how your representative voted on H.R. 8, the Death Tax Repeal Permanency Act, visit: http://clerk.house.gov/evs/2005/roll102.xml. The bill is now in the Senate. NCRP encourages all concerned citizens and members of the nonprofit community to urge their senators to work against the permanent repeal of the estate tax. For contact information for senators, please visit: www.senate.gov. ### [nt1]From Congressional Research Service |
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