Stop Permanent Repeal of the Estate Tax

This alert provides background information on the estate tax and 5 action steps you can take to help prevent repeal of the estate tax. Read through the alert and then contact your Senators through this legislative link -- the talking points included in this alert are also available there to provide suggestions for your letter or call to your Senators.

This alert provides background information on the estate tax and 5 action steps you can take to help prevent repeal of the estate tax. Read through the alert and then contact your Senators through this legislative link -- the talking points included in this alert are also available there to provide suggestions for your letter or call to your Senators.

What is the Estate Tax?

The estate tax is applied when someone leaves behind an estate worth at least $1 million at the time of death. There is no tax on the first $1 million, a limit which rises gradually to $3.5 million by 2009. Additionally, there is no limit on amounts of money that can be given to charitable organizations in order to lower the size of the estate to be taxed.

What is Current Law?

Last summer as part of the massive Bush tax cut, the estate tax was temporarily repealed for one year -- 2010 – and will be reinstated in 2011. This year, the House passed a bill to permanently repeal the estate tax, which will cost $100 billion over the next decade and $850 billion over the next 20 years.

So What's Happening Now?

Sen. Phil Gramm (R-TX), along with Sen. Jon Kyl (R-AZ), have received assurances from Majority Leader Tom Daschle that they can bring up an amendment to permanently repeal the estate tax before June 28.

What Can You Do?

Call or write your Senators and tell them to vote AGAINST the Gramm/Kyl amendment for permanent repeal of the estate tax.

The other side is making this their number one issue. According to Dan Danner, a Vice President for the National Federation of Independent Business and a leader in the Family Business Estate Tax Coalition, "It appears the 'death tax' repeal is doable now, so our recommendation is, 'Go for it.'" Groups such as the National Association of Wholesalers-Distributors "are putting as much shoulder behind this as we possibly can. If we can succeed with the 'death tax,' we'll create significant momentum to make the rest of the tax cuts permanent. If we fail, there will be no more action until after the elections."

We need to get our voice heard against these powerful special interests. Here are five things you can do:

  1. Fax a letter, call, or email your Senator to vote NO on the Gramm amendment to permanently repeal the estate tax. Go to OMB Watch's Action Page and simply type in your zip code in the box provided. Talking points are provided as suggestions.

  2. Visit your Senator during the upcoming Memorial Day congressional recess (May 27 –June 3). Now is a good time to schedule meetings with your Senators (or their staff) to tell them the many reasons why permanent repeal is the wrong choice for your state and the country. We are preparing additional state specific talking points -- so check back here in the next few days.

  3. Write letters to the editor or op-eds for your state and local newspapers -- check back here in the next few days. To send a letter to the editor to your newspaper, visit the media section of this Alert System

  4. Volunteer to get others engaged. If you are willing to help, contact OMB Watch’s Ellen Taylor (taylore@ombwatch.org) or Cate Paskoff paskoffc@ombwatch.org), or United for a Fair Economy’s Chuck Collins (ccollins@faireconomy.org).

  5. Review our Estate Tax Resource Page for more information about the estate tax.

Talking Points

Permanent repeal of the estate tax:

  • Is fiscally irresponsible and sets the wrong priorities for the country – Permanent repeal of the estate tax would cost the federal government just under $100 billion over the next 10 years, with $55 billion of this coming in 2012 alone; it will cost $850 billion over the next 20 years. At a time when we have so many other pressing needs – ensuring the strength of Social Security and Medicare, providing for homeland security, and educating our children – we just cannot afford to repeal the estate tax.

  • Violates our nation’s sense of fairness – A founding principle of our country is the notion of an equal opportunity for all. Repealing the estate tax is a gift to multi-millionaires at the expense of 99% of American taxpayers. Ultimately, it will shift more taxes onto the rest of us.

  • Will hurt charities – The estate tax strongly promotes charitable giving and the creation of charitable foundations. Eliminating it will have an adverse impact on the services provided by nonprofits in our communities – even as repeal also diminished the federal and state revenue for these services.

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