A project of the Council of Michigan Foundations
In 1993, the Council of Michigan Foundations’ Government Relations Committee advocated for the Michigan inheritance tax to be replaced with an estate tax to bring it into line with federal rates, and to prevent the flow of charitable capital from Michigan to states with lower inheritance taxes. By keeping Michigan wealth within the state, they hoped to encourage larger philanthropic gifts among wealthy donors. This tax relief was phased out between 2002 and 2010, at an estimated cost of $17 billion (nationally) in charitable bequests (1).
(1) Charitable Bequests and the Repeal of the Estate Tax (2004), Congressional Budget Office.