Legislation & Politics

Letter to Senators opposing the repeal of the inheritance tax

July 11, 2005

Dear Senator:

On behalf of the 1.4 million members of the American Federation of State, County and Municipal Employees (AFSCME), I strongly urge you to oppose the repeal of the inheritance tax and other unacceptable "reform" proposals which would serve to make the estate tax meaningless. At this time of war and record setting deficits, we should not divert funds from the essential needs of America's troops abroad or our citizens at home. AFSCME strongly opposes tax policies that weaken America's ability to invest in the needs of all Americans.

Earlier this year, Congress approved a budget resolution that would cut important services, including Medicaid, community development, and child care. If trends continue, budgetary pressures on these and other vital programs will worsen. Given that repealing the inheritance tax would cost nearly $1 trillion during 2012-2021, we cannot afford to divert this vital tax revenue from investments in public schools, health care, homeland security, and other essential services.

The inheritance tax is directed at those most able to pay and is a fair and progressive tax. In 2004, it impacted less than one percent of eligible estates. Currently, it only affects estates larger than $1.5 million ($3 million per couple) and in 2009 will only affect estates larger than $3.5 million ($7 million per couple). Furthermore, almost 50 percent of all estate taxes are paid by the wealthiest one percent of all estates. AFSCME opposes tax changes that grant multi-million dollar tax breaks to a few thousand families — each worth millions or billions of dollars — at the expense of others. Rather than repealing the estate tax, Congress should fully fund homeland security needs, the No Child Left Behind Act, veterans' health care, health care for children and other urgent needs.

There is no need to repeal the inheritance tax or to enact a so-called "reform" that significantly reduces its revenues. We oppose estate tax proposals that benefit a few wealthy families at the expense of America's working men and women and that undermine investments in our nation's future.


     Sincerely,

     Charles M. Loveless
     Director of Legislation

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