Estate Tax Preserved: A Victory for Amercia's Charities For Immediate Release May 26, 2001 Contact: Ellen Taylor 202/234-8494 For over ten years now, those opposed to the estate tax have worked consistently to portray the estate tax as a "death" tax, a cruel and unusual means of "double" and "confiscatory" taxation, and the destroyer of innumerable small businesses and farms. Despite their intense lobby effort and promotion of misleading information, the tax bill passed by Congress only temporarily repeals the estate tax for one year in 2010. The tax bill repeals the estate tax starting January 1, 2010 but reinstates it on January 1, 2011 because the overall tax bill sunsets at midnight December 31, 2010 reverting to current law. In effect, the estate tax has been preserved and they have been left with only a symbolic victory. Not very long ago, it appeared that the 107th Congress would repeal the estate tax. Less than four months ago and against all odds, OMB Watch, a nonprofit research and advocacy group concerned with government accountability and citizen participation, formed a broad coalition of nonprofits called Nonprofits to Preserve the Estate Tax (see OMB Watch's Estate Tax Resources page). In concert with United for a Fair Economy and its Responsible Wealth members, the nonprofit coalition has been working hard over the past few months to correct the misinformation that surrounds the estate tax and show that it serves an essential purpose in our democratic society. The estate tax is a valuable curb against great concentrations of wealth being transferred from generation to generation, protecting against creation of a new aristocracy and a wider gap between the very rich and the poor. The estate tax is an important source of federal and state revenue that is generated by the wealthiest 2% of taxpayers and supports a broad array of government services to low and middle-income Americans. The estate tax is a vital incentive for giving to charities and foundations, supporting the important efforts of faith-based, environmental, human services, arts, education, and advocacy groups all over the country. Round one is over. David beat Goliath. Those who would repeal the estate tax won only a rhetorical repeal. But they will be back to try to make repeal permanent. This time, however, nonprofits will be ready. We will insure that the public is not mislead by false claims of the tax collector showing up at someone's death bed or swayed by phony stories about small farm owners being driven off their land by tax collectors. Through the voices of charities, individuals concerned with charitable giving, and wealthy individuals from across the country, we will describe the importance of preserving the estate tax. Gary Bass, the Executive Director of OMB Watch and chair of the nonprofit coalition said, "We're in it for the long haul-ten years is a long time with many changes in the political environment. The voices of nonprofits, speaking substance over rhetoric, will not let proponents of repeal continue a free ride with their 'death tax' messages. We shall continue to emphasize the value and importance of the estate tax in preventing concentrations of wealth, generating federal and state revenue, and providing an crucial incentive for charitable giving."