Non-Profits Shouldn’t Fight to Save Their Tax Subsidies

William Beach / November 12, 2009

Congress soon will seal the fate of federal death taxes. If Congress acts by doing nothing, then the federal tax rate on estates will fall to zero for all of 2010 before rising to 55 percent on January 1, 2011. That’s current law. On the other hand, it could pass legislation to set the tax rate above zero for 2010.

That zero rate has a number of people worried, including executives of some of the nation’s largest non-profit organizations, who think that a one-year repeal of death taxes will undermine charitable contributions. The Wall Street Journal reported this morning that the some of the largest non-profit trade associations are urging their members to lobby Congress for a continuation of the current tax rate of 45 percent and exempt amount of $3.5 million through 2010. (more…)