U.S. Seventh in World Giving
The U.S. ranks behind six other countries in private philanthropy, a new Johns Hopkins study says. The study, conducted by the Center for Civil Society Studies at the school's Institute for Policy Studies, finds the Netherlands in the lead, followed by Sweden, Tanzania, Norway, France and Britain.

The ranking evaluates private philanthropy, which includes cash and in-kind gifts from individuals, businesses and foundations, as well as the value of volunteer time, as a percentage of gross domestic product. Giving in the Netherlands accounted for 4.4 percent of GDP, compared to 2.5 percent for the U.S., the study says.

The study does not include giving to religious congregations because data were not available for all countries, the study says. The U.S. leads the world in giving when the value of volunteer time is excluded.
Philanthropy Journal 12/28/04

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Estate Tax Permanent Repeal in 2005?
In early 2005, Sen. John Kyl (R-AZ) and other advocates of repeal will seek to pass a law that permanently repeals the estate tax. Previous attempts by Sen. Kyl were four votes short of permanent repeal. However, with the new Republican senators who will be coming to Washington in January, the advocates of permanent repeal may have the necessary 60 votes.

The Senate has been divided into two groups with very strong and directly opposing positions. The advocates of complete repeal of the estate tax have consistently voted against all compromises. Those who wish to retain an estate tax for the top one-third of one percent of the nation (generally families with estates of $10 million or more after the year 2010), have proposed various compromises and consistently voted against repeal.

Permanent repeal in 2005 may depend primarily on Sen. Blanche Lincoln (D-AR) and Sen. Mary Landrieu (D-LA). Both have indicated a preference for the compromise offered by moderate Democratic senators, but both have also voted for permanent repeal. Their votes could easily lead to the success or failure of the permanent repeal effort.
Giftlaw 12/31/2004

Is There Less Cushion Than We Think?
For two decades, the Social Security system has been creating a "surplus," and that reserve is widely thought to be available to make up for shortfalls projected to begin in 2018, when more money has been promised to beneficiaries than will be taken in through payroll taxes. But that surplus isn't a pile of cash waiting to be used. In fact, the money -- $1.5 trillion plus interest to date -- has already been spent.

In accordance with the law, the extra money Social Security takes in is loaned to the U.S. Treasury, in exchange for which it receives special-issue Treasury bonds. The actual cash goes into the government's general revenue pool.

The bonds are special because, unlike other government bonds, they can't be bought or sold on the open market, and they can be redeemed at any time at face value.

But just like other government bonds, the special-issue Treasurys pay interest and are backed by the full faith and credit of the U.S. government, which has never defaulted on its debt.

When Social Security looks to tap those special securities, starting in 2018, the government will have to come up with a way to pay the money. It has several options. Among them, it can:

One might argue that any of these options comes at the expense - directly or indirectly -- of U.S. workers, both those who paid the surplus into the system and their children.

Whatever options the government chooses, "there will be budget pressure," said Craig Copeland, director of EBRI's nonpartisan Social Security Research Program.

• Education Incentives
• Tax Credits
• Retirement Plans / Individual Retirement Arrangements
• Inflation Adjustments
• Extension of Expiring Provisions and
• Miscellaneous Items

To view the IRS summary in a printable format, click here.

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