Tax Cut Could Hurt Charities

Father Bill Geenlaw does the Lord's work — and sets the president's example.

"Anyone who is hungry is welcome here," he says of his soup kitchen at New York's Holy Apostles Church. The soup kitchen serves 250,000 meals a year — exactly the kind of faith-based service President Bush sees reducing government's role as a safety net.

But Greenlaw says while the president is asking charities to do more, he's proposing they do it with less — by eliminating the estate tax, reports CBS News Correspondent Jim Axelrod.

"It's crazy in my judgment to think about eliminating the estate tax so that the most wealthy of our society can become still more wealthy," he said.

It's a tax that can take more than half of a wealthy person's estate. To avoid it, people write wills that leave money to charities rather than the government. The IRS estimates between $14 and 16 billion are given away to avoid it each year.

Philanthropist Edith Everett gives away millions every year. She's among the dozens of super-rich who signed a petition calling estate tax repeal a bad idea.

But Republican Rep. Jennifer Dunn of Washington — the bill's sponsor in the House — says don't assume donations will dry up if the death tax dies.

"I believe when people have more dollars in their pockets they'll give more to charity. That's a very deep thread of altruism that runs through us," said Dunn.

"I think that's just dead wrong," said Greenlaw, who has to raise $34,000 every week to keep the soup pots full.

"The gifts will be reduced in size and number," he predicts.

"I think you should tell him not to be fearful," said Dunn. "Just because things have been done in that way for years doesn't mean that the dollars won't come from people who care about what he's doing."

Greenlaw will pray she's right. But on the soup lines and the front lines, he won't take it as an article of faith.

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