Biden capital gains tax plan would raise $113 billion if 'step up in basis' is killed, says Wharton

[Yo_Mama_Been_Loggin]

President Joe Biden is expected to pitch a higher capital gains tax this week to raise funds for his economic agenda. But the policy would lose the U.S. billions in revenue if it doesn't also scrap a tax break for heirs, according to a new analysis.

Eliminating that tax break — known as a "step-up in basis" at death — would raise $113 billion over a decade starting in 2022, when coupled with a higher tax on capital gains, according to the University of Pennsylvania's Wharton School.

But the anticipated capital-gains proposal would cost the U.S. $33 billion over that period if it doesn't get rid of that step-up, according to the analysis.

Biden called for an elimination of a step-up in basis at death as a presidential candidate.

https://www.msn.com/en-us/money/markets/biden-capital-gains-tax-plan-would-raise-113-billion-if-step-up-in-basis-is-killed-says-wharton/ar-BB1g709j

[Hoyt]

1. Better than nothing, but $12 Billion a year is not a lot of new revenue.

[AZSkiffyGeek]

2. I'm of two minds on this

I think it needs to be more focused - my wife worked on cost-basis step-ups for Vanguard, and by in large it was people trying to plan retirement and not knowing how they would be affected by a death inheritance. This would affect a lot more people than the rich, and I wonder if it should be more targeted towards the wealthy, or limit the amount stepped up, rather than eliminate it completely.