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Politics & Religion / Re: Biden proposes Ending "Stepped Up Value"
« Last post by DougMacG on April 25, 2024, 09:52:36 AM »https://www.atr.org/biden-calls-for-44-6-capital-gains-tax-rate-highest-capital-gains-tax-since-its-creation-in-1922/
It's worse than just the highest rate EVER on capital investment.
From the link:
Biden’s proposed capital gains tax hike will also hit many families when parents pass away. Biden has proposed adding a second Death Tax (separate from and in addition to the existing Death Tax) by taking away stepped-up basis when parents die. This would result in a mandatory capital gains tax at death — a forced realization event.
As previously reported by CNBC:
“When someone dies and the asset transfers to an heir, that transfer itself will be a taxable event, and the estate is required to pay taxes on the gains as if they sold the asset,” said Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center.
Biden’s proposal to take away stepped-up basis has already been tried, and it failed: In 1976 congress eliminated stepped-up basis but it was so complicated and unworkable it was repealed before it took effect.
As noted in a July 3, 1979 New York Times article, it was “impossibly unworkable.”
NYT wrote:
“Almost immediately, however, the new law touched off a flood of complaints as unfair and impossibly unworkable. So many, in fact, that last year Congress retroactively delayed the law’s effective date until 1980 while it struggled again with the issue.“
As noted by the NYT, intense voter blowback ensued:
“Not only were there protests from people who expected the tax to fall on them — family businesses and farms, in particular — bankers and estate lawyers also complained that the rule was a nightmare of paperwork.“
Larger point is: People create wealth in order to leave it to the next generation, to leave each generation better off than we were. [When they create the wealth for themselves it's called consumption.]
All these people want to leave the next generation is failed socialism and debt.
The Left wants that whole concept of leaving the next generation better off destroyed. They don't want just the majority dependent on the government; they want ALL dependent on the government.
Fine, but if all ride in the wagon, who pulls the wagon?
And back to the first point, these policies don't bring in more money to pay for the government - exposing their real vulnerability, they don't care about paying for the government. If they wanted government paid for, they would have to spend less.