Most Republican lawmakers seem to favor a repeal of the estate tax as part of overall tax reform. What many have failed to consider are the negative repercussions for charitable giving if the repeal is successful. When the estate tax was temporarily repealed in 2010, gross charitable bequests dropped over 37% from the previous year. William Gale, co-director of the Urban-Brookings Tax Policy Center, noted that, “Charitable contributions are highly concentrated among very wealthy households. It [the estate tax] encourages people to give during life as well.” This may be true, but many view the estate tax as being inherently unfair. While the tax affects a small minority, the idea of severely taxing assets that have already been heavily taxed does not seem equitable. Jim Jordan, a representative from Ohio, echoes this sentiment: “I want to preserve charitable contributions, but I definitely want to get rid of the estate tax. It’s peoples’ money. It’s their families’ money. It’s not the government’s money.”
See Sahil Kapur, GOP Plan to Kill Estate Tax Sets up Charitable Giving Conflict, Bloomberg, August 25, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
