• The federal estate tax provides strong incentives to people to donate from their estates to charitable organizations and thereby encourages the donation of significant revenues to support services and programs that are vital to sustaining healthy communities and the well-being of Americans of all ages.
  • The Congressional Budget Office* found that the estate tax leads affluent individuals to donate far more than they otherwise would, because such donations sharply reduce estate tax liability.
• Giving through charitable bequests totaled $23.8 billion in 2009 – 8% of total giving and contributions from philanthropic foundations, many of which were created through bequests accounted for another $38.44 billion in 2009.

Estate Tax as Federal Revenue

• The estate tax is a vital source of revenue for the federal government, and at this time of record deficits and crippling debt, we cannot afford to lose tens of billions of dollars in revenue each year.
• Permanently extending the estate tax at 2009 levels would generate an estimated $515 billion in federal revenue over 10 years
  
• Repeal of the estate tax would result in the loss of over $1 trillion in tax revenues for federal government over the next ten years.

Who is Subject to the Estate Tax?

• Fewer than 3 in every 1,000 estates were subject to the estate tax in 2009.
• Extending the estate tax at 2009 levels would shield virtually all farm and small businesses from tax liability.
  • A Congressional Budget Office study found that of the few farms and small businesses that would owe an estate tax liability in 2009, an overwhelming majority would have significant liquid assets to pay the tax without touching the farm or business.