"May 19, 2010
Dear Senator:
We are writing to express our alarm that an apparent deal
is being negotiated to weaken the estate tax beyond even the very generous 2009
levels as proposed in President Obama's budget. The discussion is being
disguised as a "compromise" between lawmakers on both sides of the
issue, but instead the proposal is being crafted entirely by senators that have
consistently supported weakening or completely repealing the estate tax. In
fact, this new "compromise," although camouflaged by phase-ins and deceptive
budget tricks, is likely to ultimately result in the same costly giveaway proposed
last year by Senators Lincoln and Kyl and added to the Senate budget
resolution.
Reducing the estate tax is the wrong policy priority and
the wrong fiscal priority. It is incomprehensible that more than $ 250 billion
in tax cuts for the nation's wealthiest families should be placed higher on
Congress's agenda than extending tax cuts for the middle class or making
improvements to the refundable tax credits permanent. Indeed, it is disturbing
that cutting the taxes of wealthy trust fund heirs would even be on the agenda
at a time when one in ten Americans is out of work, discretionary spending is
being frozen, and budget deficits are looming.
Revenue from a robust estate tax could be used to save
teacher jobs, to provide access to college, to finance critical health care
research, to help struggling families, and to build the nation's
infrastructure, or to reduce the continuing deficit. These investments can
strengthen the recovery from the current economic crisis and put us on a path
for long-term growth and shared prosperity.
The Administration's proposal to reinstate the 2009
estate tax exemptions and rates is more than generous and is projected to cost
the country $ 253 billion over ten years compared to current law. The country
cannot afford additional tax cuts that benefit only the very wealthiest among
us -- the emerging proposal will cut the taxes of the richest 1 in 400 estates.
The 2009 rules, with a $ 7 million per couple exemption, already exempt the
vast majority of small businesses and farms. The few that will pay the estate
tax have several significant safeguards to protect them from having to liquidate
any business or farm assets in order to pay the tax.
We are also extremely concerned about the budget gimmicks
that will reportedly offset the cost of this windfall to the super rich.
Proposals to phase in rate reductions or exemption increases only mask the
enormous revenue loss in years outside the budget window. The same is true of
proposals to allow estates to prepay the tax. The additional revenue in the
first few years will be dwarfed by the cost of the provision over the long
term. These irresponsible revenue losses cannot be tolerated when the country
faces the deficits and debt levels that are projected. Any true revenue
offsets, even within the estate tax, should be used to fund critical programs,
to reduce the deficit, or to offset the already enormous cost of extending the
2009 rules. Another tax cut for the wealthiest estates in the country should
not be anyone's priority.
We urge you to communicate your concern to leadership and
to vote against any amendment that would further reduce revenue from the estate
tax. We are counting on you to make the urgent needs of ordinary Americans and
the long-term fiscal health of the country the top priorities for Congressional
action.
Sincerely,
American
Federation of Government
Employees,
AFL-CIO
American
Association of University
Women
(AAUW)
American
Federation of State,
County,
and Municipal Employees
American
Federation of Teachers
Americans
for Democratic Action,
Inc.
Americans
for Responsible Taxes
Campaign for America's Future
Citizens
for Tax Justice
Coalition
on Human Needs
CommonGoods Network
Communication Workers of America
Community
Action Partnership
Economic
Opportunity Institute
Every
Child Matters Education Fund
Friends
Community on National
Legislation
Institute
for Policy Studies --
Program on
Inequality and Common
Good
Money With
A Mission
The
National Advocacy Center
Sisters of
the Good Shepherd
National
Committee for Responsive
Philanthropy
National
Education Association
National
Women's Law Center
NETWORK: A
National Catholic Social
Justice Lobby
OMB Watch
Responsible Wealth
RESULTS
Sargent
Shriver National Center
on Poverty
Law
Service
Employees International
Union
Sugar Law
Center
Tax
Justice Network USA
Unitarian
Universalist Association
of
Congregations
United
Church of Christ, Justice
and
Witness Ministries
United
Food and Commercial Workers
International Union
United for
a Fair Economy
USAction
US Public
Interest Research Group
Wealth for
the Common Good
Wider
Opportunities for Women
Working
America
YWCA USA"
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