This is how Joe Biden will tax generational wealth transfer

[TomCADem]

I am glad they are eliminating the loophole for a step-up in basis even if you don’t pay the estate tax. This loophole puts the heir in an even better position then the decedent. By taxing the unrealized gain at death, heirs would get hit at the transfer, regardless of whether they sell the asset.

https://www.cnbc.com/2020/03/13/this-is-how-joe-biden-will-tax-generational-wealth-transfer.html

Former vice president Joe Biden’s $4 trillion tax plan would raises taxes on higher income households both in life and at death, according to analysis by the Tax Policy Center.

The Democratic presidential contender proposed a raft of tax policy changes that would raise levies on the wealthy, including boosting individual income tax rates on households with taxable income over $400,000, according to the center’s study.

Biden has also set his sights on estates, but is taking a different tack from merely raising rates on wealth transfer.

He would levy a tax on unrealized appreciation of assets passed on at death, the center found.

[at140]

1. I like the plan! nt

[Hoyt]

2. Great. Lack of robust estate taxes is a factor in wealth inequality.

[kurtcagle]

3. Good. It's about time this happened

There is no more powerful wealth transfer mechanism to the wealthiest 0.1% than kneecapping the estate tax.

[MRDAWG]

4. Stepped up basis was good when there was a real estate tax but..............

now there is really no estate/gift tax.

When my mother died in 1976 I paid just over $10,000 in estate tax. Her estate was valued at $120,000 and I got a $60,000 exemption!

[drmeow]

5. We need to get rid of the capital gains tax

Income is income is income - people who live off dividends shouldn't pay lower taxes than people who earn salary and wages.