| NH Citizens Alliance |
| Over thirty years of working for social, economic, and political justice for all |
| New Hampshire Citizens Alliance 4 Park Street, Suite 304 Concord, NH 03301 603-225-2097 |
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PrioritiesNH
NHCA has a long history of working for economic justice in the
Granite State. In March of 2008 we merged with PrioritiesNH, a group
that focused primarily on federal spending and defense overspending. The
PrioritiesNH project at NHCA has built awareness about the government's
out of control military spending through an intensive and innovative
marketing campaign, which has helped educate and mobilize residents and
legislators alike about the need to reinvest the $60 billion spent annually on obsolete Cold
War weapons and other Pentagon waste in favor of programs that improve the lives of
people and families.
Click here to learn more about Priorities NH.
The Estate Tax
NHCA is for the estate tax since it is a very important source of revenue for our
government that comes only from the top one half of one percent of Americans. The estate
tax has been reduced significantly over the last decade and is set to expire next year, only
to reappear in 2011. The President is proposing to extend the estate tax at its current
(2009) levels, which NHCA supports due to the much needed revenue it will produce. In
2009, estates up to $7 million per couple or $3.5 million per individual are completely
exempt from any tax, since only the value of an estate above those levels is taxed. While the
tax rate is 45 percent, the amount paid by most estates is much closer to 20 percent once
other credits and deductions are taken into account. Some Congressmen want to increase
the threshold and lower the tax rate, but we believe that further raising the exemption level
and lowering the rate at which estates are taxed undermines our nation’s ability to make
needed investments and would make the federal deficit even worse.
Investing in health care, education, infrastructure and reducing the federal deficit are
important for improving our long term economic outlook. Cutting the estate tax should not
take precedence over these important programs that will benefit the other 99.5 percent of
Americans as well as the top one half percent.
Estate Tax FAQs:
What is the estate tax?
A tax on inheritance for the wealthiest (less than half of 1%) of Americans
The estate tax is a progressive and fair source of federal revenue, which has been an
important piece of government funding for almost a century. The tax, which applies to only
less than half of 1% of all estates, is levied on the transfer of an individual’s property at the
time of their death. Last year, the estate tax was levied on only 15,000 estates.
Who pays the tax?
Only those who plan on passing on more than $3.5 million
The estate tax comes with many deductions and exemptions. It is important to note that, in
2009, only individuals with estates worth over $3.5 million (or couples with estates over $7
million) pay any estate tax. This threshold means that the vast majority of estate owners
pay no tax at all. Furthermore, the tax is only levied on the estate’s value after making
allowable deductions such as debts and mortgages, administration expenses, and charitable
giving.
The estate tax only impacts the wealthiest Americans. Since the first $3.5 million of an
individual’s estate (and $7 million of a couple’s estate) is tax free, as few as 3 in 1000 people
who die owe any estate tax.2 According to the IRS, in 2007, this was as few as 0.7% of U.S.
taxpayers. As Bill Gates Sr. stated, “The reason the estate tax makes so much sense is that
there is a direct relationship between the net worth people have when they pass on and
where they live. The government that protects their business activities, the traditions that
enable them to rely on certain things happening, that’s what creates capital and enables net
worth to increase.”
Who benefits from the estate tax?
We all do! We all benefit from the federal revenue provided by the estate tax, as it goes to
fund social services, public programs and federal infrastructure. The estate tax was set up
with the recognition that America’s wealthiest generally benefit most from public programs
and infrastructure (i.e., gasoline subsidies, roads, education, environmental protection),
and thus it is only fair that they contribute more to the longevity of these services.
What is the current state of the tax?
Without government action we will lose billions of dollars in public revenue. In 2001,
Congress and President Bush approved legislation that phased out the estate tax until it
disappears in 2010. Then, if no action is taken this year, the estate tax comes back in 2011
with the same exemption and tax rates as in 2001.
While still hoping for a permanent repeal, many estate tax opponents are calling for a
permanent 35 percent tax on estates larger than $10 million. This policy, while it provides a
tremendous break for America’s most wealthy, leaves the rest of the country behind as our
public program and infrastructure suffer the consequences.
The cost of repeal in 2012 alone would be $42 billion dollars—nearly twice the budget of
elementary and secondary education. It is in our public interest to preserve the estate tax.
Additional Resources:
United for a Fair Economy: http://www.faireconomy.org/
Center on Budget and Policy Priorities: http://www.cbpp.org/
Citizens for Tax Justice: http://www.ctj.org/
Want to help preserve the estate tax?
If you are interested in getting more involved, please contact NHCA at the address or
phone number listed below.
NHCA has a long history of working for economic justice in the
Granite State. In March of 2008 we merged with PrioritiesNH, a group
that focused primarily on federal spending and defense overspending. The
PrioritiesNH project at NHCA has built awareness about the government's
out of control military spending through an intensive and innovative
marketing campaign, which has helped educate and mobilize residents and
legislators alike about the need to reinvest the $60 billion spent annually on obsolete Cold
War weapons and other Pentagon waste in favor of programs that improve the lives of
people and families.
Click here to learn more about Priorities NH.
The Estate Tax
NHCA is for the estate tax since it is a very important source of revenue for our
government that comes only from the top one half of one percent of Americans. The estate
tax has been reduced significantly over the last decade and is set to expire next year, only
to reappear in 2011. The President is proposing to extend the estate tax at its current
(2009) levels, which NHCA supports due to the much needed revenue it will produce. In
2009, estates up to $7 million per couple or $3.5 million per individual are completely
exempt from any tax, since only the value of an estate above those levels is taxed. While the
tax rate is 45 percent, the amount paid by most estates is much closer to 20 percent once
other credits and deductions are taken into account. Some Congressmen want to increase
the threshold and lower the tax rate, but we believe that further raising the exemption level
and lowering the rate at which estates are taxed undermines our nation’s ability to make
needed investments and would make the federal deficit even worse.
Investing in health care, education, infrastructure and reducing the federal deficit are
important for improving our long term economic outlook. Cutting the estate tax should not
take precedence over these important programs that will benefit the other 99.5 percent of
Americans as well as the top one half percent.
Estate Tax FAQs:
What is the estate tax?
A tax on inheritance for the wealthiest (less than half of 1%) of Americans
The estate tax is a progressive and fair source of federal revenue, which has been an
important piece of government funding for almost a century. The tax, which applies to only
less than half of 1% of all estates, is levied on the transfer of an individual’s property at the
time of their death. Last year, the estate tax was levied on only 15,000 estates.
Who pays the tax?
Only those who plan on passing on more than $3.5 million
The estate tax comes with many deductions and exemptions. It is important to note that, in
2009, only individuals with estates worth over $3.5 million (or couples with estates over $7
million) pay any estate tax. This threshold means that the vast majority of estate owners
pay no tax at all. Furthermore, the tax is only levied on the estate’s value after making
allowable deductions such as debts and mortgages, administration expenses, and charitable
giving.
The estate tax only impacts the wealthiest Americans. Since the first $3.5 million of an
individual’s estate (and $7 million of a couple’s estate) is tax free, as few as 3 in 1000 people
who die owe any estate tax.2 According to the IRS, in 2007, this was as few as 0.7% of U.S.
taxpayers. As Bill Gates Sr. stated, “The reason the estate tax makes so much sense is that
there is a direct relationship between the net worth people have when they pass on and
where they live. The government that protects their business activities, the traditions that
enable them to rely on certain things happening, that’s what creates capital and enables net
worth to increase.”
Who benefits from the estate tax?
We all do! We all benefit from the federal revenue provided by the estate tax, as it goes to
fund social services, public programs and federal infrastructure. The estate tax was set up
with the recognition that America’s wealthiest generally benefit most from public programs
and infrastructure (i.e., gasoline subsidies, roads, education, environmental protection),
and thus it is only fair that they contribute more to the longevity of these services.
What is the current state of the tax?
Without government action we will lose billions of dollars in public revenue. In 2001,
Congress and President Bush approved legislation that phased out the estate tax until it
disappears in 2010. Then, if no action is taken this year, the estate tax comes back in 2011
with the same exemption and tax rates as in 2001.
While still hoping for a permanent repeal, many estate tax opponents are calling for a
permanent 35 percent tax on estates larger than $10 million. This policy, while it provides a
tremendous break for America’s most wealthy, leaves the rest of the country behind as our
public program and infrastructure suffer the consequences.
The cost of repeal in 2012 alone would be $42 billion dollars—nearly twice the budget of
elementary and secondary education. It is in our public interest to preserve the estate tax.
Additional Resources:
United for a Fair Economy: http://www.faireconomy.org/
Center on Budget and Policy Priorities: http://www.cbpp.org/
Citizens for Tax Justice: http://www.ctj.org/
Want to help preserve the estate tax?
If you are interested in getting more involved, please contact NHCA at the address or
phone number listed below.
