Advocacy
Legislative Update: Repeal of Estate and Gift Tax
On August 31, President Bill Clinton vetoed a bill that sought to eliminate the Estate and Gift Tax. On September 7, Republicans in Congress attempted a veto override, but were unsuccessful in garnering the two-thirds support required to override the president's veto.The repeal of the Estate and Gift Tax would likely have had a significant impact on charitable donations. A U.S. Department of Treasury report finds that without the estate tax, charitable contributions could drop as much as 12 percent—or roughly $5 to $6 billion a year. Charitable contributions to colleges, universities, museums, and arts nonprofits could have decreased dramatically had Congress been successful in repealing the Estate and Gift Tax.
Even though President Clinton was able to veto the repeal of the Estate and Gift Tax, it is likely Congress will introduce similar legislation next year.