Estate tax is targeted for repeal which could hurt charities across America.
President Trump and most Congressional Republicans are generally in agreement to end the estate tax. However, many others are pointing out that it could hurt charities, according to the Financial Advisor in “Estate Tax Repeal Could Cost Charities, Attorney Says.”
Any estate tax repeal would come out of a larger tax reform or tax cut package.
To reach an agreement, the President and Republicans will likely need to drop some of their plans, especially if they need Democratic votes to pass the final legislation.
With estate tax repeal being an issue, people are beginning to discuss what it might mean.
One of the many methods that wealthy people use to shrink the size of their estates below the estate tax exemption, is to give some wealth away to charities.
The fear is that, without the need to shrink the size of their estates, the wealthy will stop giving.
The obvious counter to this is that the estate tax is not the only reason wealthy people give to charities, or even the primary reason. They give because they believe in being charitable and the estate tax is just an extra, but unnecessary incentive.