Estate Tax Action Alert - 3/18/08

Dear Estate Tax Supporter,

We need your help! This is a critical time to support the battle to preserve the estate tax. Several Senators in Congress (see PDF) are moving to support a large estate tax cut as part of budget amendments.

Please call your Senators to voice your concerns about cutting the estate tax, and to urge them to support this important tax. We're asking you to call tomorrow, Wed., March 19. The main number for all Senate offices is 202-224-3121.

By voicing your opinion, you can hold federal policymakers accountable for their decisions.

What to say
Depending on how your Senator has voted recently (see PDF), either thank them for their continued support or voice your concern about their changed stance.

Senators who have voted recently for a bigger estate tax cut, but did not support it last year are: Biden, Boxer, Cantwell, Clinton, Conrad, Dodd, Feinstein, Johnson (was ill and did not vote last year), Lautenberg, Lieberman, McCaskill, Menendez, Murray, Obama, and Webb. We encourage you to contact their offices and express your concern about this vote.

Others held fast (see PDF) and should be applauded and thanked.

When you call your Senators at 202-224-3121, ask for the tax staff person. Leave a message with your feelings about the senator's estate tax votes, and let them know about UFE's estate tax proposal. Give your name and phone number if you want to be contacted.

Our position
The recent Senate budget votes are far from what United for a Fair Economy supports. UFE proposes a freeze in the exemption at the 2008 level of $2.0 million per person, or $4 million per couple. We propose a rate of 45% for estates between $2.0 million and $5 million; 50% for estates between $5 million and $10 million; and the pre-2001 top rate of 55% for estates above $10 million -- all indexed for inflation.

The House did not pass big estate tax cuts in its budget, so the House and Senate still need to make a joint budget. Your voice supporting UFE's estate tax position will make a big difference.

Background
OMB Watch has a short history of the recent budget amendments.

We were very pleased that the Senate defeated Senator Kyl's amendment that would have provided for a massive deficit-financed cut to the estate tax, with a $10 million exemption per couple and 35% top tax rate. His plan would have cost nearly 80% as much as repeal and given the vast majority of its benefits to the richest estates in the country.

We were concerned however, by some of the votes for Senator Salazar's amendment, which expressed support for similar deep estate tax cuts -- provided that they were paid for. Senator Salazar offered the amendment to provide "cover" for Democratic Senators who felt they had to be on record in favor of more generous estate tax changes than Sen. Baucus' plan, which extended the 2009 estate tax parameters ($7 million exemption per couple and a 45% tax rate) through 2013.

The Salazar amendment did not pass, but it secured the votes of many Democrats who opposed a similar amendment last year, including some Senators who we would hope would oppose any estate tax changes that went beyond 2009 law. Even if the cost of those changes were "paid for," they would still be soaking up scarce resources that could be put to more valuable use than tax cuts for the 3 in 1,000 estates valued at more than $7 million per couple!

Please make calls tomorrow. Today, please forward this email to anyone interested.

Thanks for taking action,

Lee Farris
Senior Organizer on Estate Tax Policy
United for a Fair Economy
617-423-2148 x133
lfarrisfaireconomy.org