Estate Tax "Compromise" With 15 Percent Rate Is Little Different Than Permanent Repeal

Center on Budget and Policy Priorities, 5/31/06

Reducing the top rate to 15 percent would lose nearly as much revenue as full repeal.

Reducing the top rate to 15 percent would produce an effective rate of just 6 percent.

Reducing the top rate to 15 percent would provide a tax windfall to extremely large estates.

Reducing the top rate to 15 percent would largely eliminate an important incentive for charitable giving.