April 9, 2009 | Read Time: 1 minute
Two umbrella groups of nonprofit organizations are asking the House and Senate to make the estate tax permanent and at levels that are already in effect this year.
Under current law, heirs can exempt $3.5-million from taxes ($7-million for couples), with amounts above that taxed at 45 percent.
In 2001, Congress passed the current law that gradually phases out the estate tax through 2009 and repeals it for 2010. In 2011, however, that current law is set to expire and estate-tax levels that applied years earlier go back into effect unless Congress takes action.
The Council on Foundations, an association that represents more than 2,000 grant makers, and Independent Sector, a coalition of approximately 600 charities and foundations, said they support efforts to permanently keep the estate tax at 2009 levels.
President Obama and key members of Congress — including Sen. Max Baucus, the Montana Democrat who chairs the Senate Finance Committee — have proposed keeping the estate tax at the current rate.
Studies have shown that the estate tax prompts wealthy people to give more money to charity since that shields some assets from taxation.
