As a non-millionaire who paid an estate tax, I am tired of the false claims made in Thursday's guest column by Dick Patten. For starters, a recent non-partisan study found that virtually no farm or small business would pay estate taxes with a few simple changes to current law. In our state, raising the exempt amount to $3.5 million per person means that only 80 estates would likely pay any estate tax in 2006, and just 3 percent of them are family-owned farms or businesses.

Millions of average Americans have good reasons to oppose repeal.

Money from estate taxes helps support public schools, roads, hospitals, nursing homes, the postal service, national defense, farm subsidies and, yes, small businesses.

The estate tax is a proven incentive for charitable giving. For 2006, estate tax repeal would cost our state's local charities $169 million. That's more than the $156 million in annual grants from the Gates Foundation. The state budget couldn't make up that loss.

Third, it wasn't just assets that my parents passed along to me and my siblings, but values -- such as patriotism and a belief that U.S. citizenship includes shared responsibility as well as enormous benefits. The tax lets those who've benefited most from this country's stability and opportunity give back a little to the country that made it all possible.

Nancy Amidei
Seattle

You can also find it here!

Posted by Jennifer Lowe, 12:03:54 PM



Nonprofits Benefit from Estate Tax, Seattle Op-Ed Says
Grateful Americans don't mind giving something back

As a non-millionaire who paid an estate tax, I am tired of the false claims made in Thursday's guest column by Dick Patten. For starters, a recent non-partisan study found that virtually no farm or small business would pay estate taxes with a few simple changes to current law. In our state, raising the exempt amount to $3.5 million per person means that only 80 estates would likely pay any estate tax in 2006, and just 3 percent of them are family-owned farms or businesses. Millions of average Americans have good reasons to oppose repeal. Money from estate taxes helps support public schools, roads, hospitals, nursing homes, the postal service, national defense, farm subsidies and, yes, small businesses. The estate tax is a proven incentive for charitable giving. For 2006, estate tax repeal would cost our state's local charities $169 million. That's more than the $156 million in annual grants from the Gates Foundation. The state budget couldn't make up that loss. Third, it wasn't just assets that my parents passed along to me and my siblings, but values -- such as patriotism and a belief that U.S. citizenship includes shared responsibility as well as enormous benefits. The tax lets those who've benefited most from this country's stability and opportunity give back a little to the country that made it all possible. Nancy Amidei Seattle You can also find it here!

Posted by Jennifer Lowe, 12:03:03 PM



CRS Report Re JCT Ideas for Charitable Donations
The Report summarizes major proposals by the staff of the Joint Committee on Taxation (JCT) for dealing with high-profile issues in the area of charitable giving.

The proposals came from a January 2005 report compiled by the JCT staff (JCS-02-05) and have not been endorsed by the chairman or the ranking member on the Senate Finance Committee. However, the ideas could play a role as the Finance Committee staff molds a comprehensive overhaul of tax exemptions with introduction of legislation possible in September.

According to the report, the JCT proposal on conservation easements would eliminate deductions for property still used as personal residences, reduce the amount that could be deducted, restrict some of the conservation purposes, and impose requirements on the appraiser who determined the contribution's value.

The JCT proposals also would cap the deduction on gifts of clothing and household items at $500 annually. That would be in line the $500 threshold above which donors must report their gifts to Internal Revenue Service, the CRS report said.

The JCT also recommended restricting gifts of appreciated property by limiting the deduction for any contribution to the smaller of the donor's basis in the property or the property's fair market value, but allowing for the donee organization to use the gift to further its tax-exempt purpose.

Such a change, the JCT staff reasoned, would encourage useful gifts to charitable groups. "Cash, publicly traded securities, and arguably property that can be used directly in substantial furtherance of exempt purposes meet this standard. Other gifts of property generally do not and so need not to be as favored," the CRS report quoted the JCT paper as saying.

Posted by Jennifer Lowe, 10:52:51 AM