As of January 1, 2011, the estate tax has been reinstated with a $5 million individual exemption ($10 million for couples) and 35 percent rate for two years as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (PL 111-132).

President's FY 2012 Budget Proposal                                                                        President Obama's FY 2012 budget proposes permanently restoring the estate tax at 2009 levels ($3.5 million individual exemption; 45% rate) once the current estate tax regime expires at the end of 2012. 

Center on Budget and Policy Priorities (CBPP) Report on the Estate Tax
CBPP released a report on May 26, 2011 calling on Congress to allow the current estate tax regime to expire at the end of 2012. The report concludes that weakening the tax beyond the 2009 levels is unaffordable and unnecessary given the country's financial circumstances.

IS Position                                                                                                             Independent Sector called on Congress to preserve this critical tax incentive for philanthropic giving by ensuring that any modifications to the tax did not raise the exemption level or lower the tax rates beyond the 2009 levels ($3.5 million exemption; 45 percent rate).

IS signed onto an Americans for a Fair Estate Tax coalition letter that called for the estate tax to be permanently reinstated during the 2010 lame duck session at no less than the 2009 levels, as well as a coalition letter of nearly 75 estate tax advocates in support of the Responsible Estate Tax Act (S.3533).

Why it Matters
The Congressional Budget Office has estimated that repealing the estate tax would reduce charitable bequests by 16 to 28 percent.  The tax has been a critical incentive for wealthy Americans to support the work of charitable organizations that improve the quality of life in our communities. LEARN MORE.