The political debate over the future of the estate tax is being watched closely by those in the philanthropic world, many of whom believe the tax motivates people who inherit wealth to give more to charity.

Not surprisingly, the tax is becoming a key issue for those in the nonprofit world who are sizing up how the contenders for the White House would affect charities if they are elected.

Sen. John McCain wants to cut the tax, while Barack Obama favors maintaining it at the levels that go into effect in 2009.

Their positions on the issue have become much more clear in the past month, as the two candidates have been trading barbs over the tax on the campaign trail.

The current law is complex, and varies by year. This year, heirs may exempt up to $2-million ($4-million for couples) from taxation, with amounts over that level taxed at a 45-percent rate. Next year, however, the…

Read More