Foundation Group Opposes Charitable-Deduction Cap and Supports Estate Tax

President Obama has also proposed keeping the estate tax, which is now being phased out and is scheduled to disappear in 2010. He would maintain the current rates, which exempt amounts of up to $3.5-million ($7-million for couples) and impose a 45-percent tax on the value above that.

Studies have shown that the estate tax prompts wealthy people to give more money to charity, both while living and in bequests, since they can shield some assets from taxation.