Democrats look to impose capital gains tax at death

The Hill ^ | 3/29/21 | Alexander Bolton

[Libloather]

Several Senate Democrats are pushing to boost federal revenue by taxing certain capital gains that are passed down after death.

Traditionally, unrealized capital gains have not been taxed, allowing wealthy individuals to transfer stocks, bonds and real estate investments to their children and grandchildren without the recipients being taxed.

Under current law, heirs don’t have to pay tax on the capital gains that were accrued by an asset or investment before they received it. They only have to pay capital gains taxes on an inherited asset after they sell it, and they only have to do so for the amount the asset or investment appreciated after it came into their possession.

Democrats, led by Sens. Chris Van Hollen (D-Md.), say it’s time for that to change.

Van Hollen has joined with Sens. Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Cory Booker (D-N.J.) and Sheldon Whitehouse (D-R.I.) to introduce a proposal to close what they call the “stepped-up basis loophole by taxing the unrealized capital gains of fortunes on which the original owner never paid income or capital gains taxes."

“The stepped-up basis loophole is one of the biggest tax breaks on the books, providing an unfair advantage to the wealthy heirs every year. This proposal will eliminate that loophole once and for all. It’s time to stop subsidizing massive inheritances for the rich and start investing in everyday Americans,” Van Hollen said in a statement Monday afternoon.

[GailA]

We have a modest 2 annuities, our modest IRA’S which we take the minimum mandated amount, I have my own checking account for SS. Hub has his own for his USN pension, Jr College Prof’s pension. Paid for house and cars. Neither of which are large. Wrong time frames.

We tied everything into 2 trusts, Family issues from our 2 sets of kids forced that. Marital for the 1 who passes first. Enough for me to live modestly. He’s nearly 81, I’m nearly 73. 2nd trust go to our kids, weird spilt as We are a blended remarried family. His is property mainly, money is mine, mainly left over life ins. and the small IRA from my late husband.

What does this death tax do to that?

[Stingray51]

Oh gosh, I am sorry but I don’t know. I did take a tax course 30 years ago but I don’t know enough to be helpful or give safe advice. And at this point, nobody really knows what will pass Congress. I heard that what Comrade Bernie is proposing would not take effect until the end of the year. But I suppose changes could also be retroactive. Buckle your seatbelt - elections have consequences, even stolen ones.

[Vaduz]

The Biden family going to have one hell of a fight after Joe checks out.

[minnesota_bound]

Meanwhile there are foundations that shelter their money.

[minnesota_bound]

It is not their money.

[entropy12]

I am speaking of immigrant voters who keep voting democrat, in spite of doing very well financially.
Look at this data based on national origin:

Origin Country————Population——Median household Income

India Americans-———4,240,466-——$126,705
Taiwanese Americans-—187,756-———$102,405
Filipino Americans-——2,983,596-——$100,273
Indonesia Americans——81,269-———$93,501
Pakistani Americans——506,193-———$87,509
Chinese Americans-——4,216,922-——$85,424
Japanese Americans——755,672-———$85,007
Korean Americans-——1,461,843———$76,674

White American’s data:
White Americans———236,173,020-—$65,902

So in spite of higher incomes than white Americans, majority keep voting democrat. Only reason I can determine is Democrats claim to be more inclusive than republicans. I have not seen any posts on DU for example, attacking any Americans with origins in a foreign country. On FR it is is allowed to stand.