The death of generational wealth and the family owned farm
Hope all the idiots that voted for these Democrats enjoy their new taxes.
We tried to tell them. They never listen.
“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.”
Terrible, shoddy “journalism”. Do they not have editors? Have they not heard of the federal inheritance tax? Yes, it has a large exemption at present but it still exists and has for a very long time. Perhaps they mention it later in the article but the part excerpted is flatly false.
Bastards. Aside from the confiscatory, Marxist nature of this proposal, it ignores major parts of the rationale for the stepped-up basis.
1. Much of a typical “capital gain” is not a real gain in capital at all. It’s mere price inflation. Real property, for instance, may not have actually been improved in any way. It’s simply worth more because the Fed has devalued the dollar.
2. For some things like publicly traded stocks, it’s simple enough to calculate basis (i.e., it’s simply purchase price). But for a ton of other stuff, like real estate that has been improved over the course of decades, it’s damned near impossible to figure out how much capital has truly been invested in the place. Hence the stepped-up basis is a tool of simplification. When you’re trying to figure out the basis of grandma’s house that she bought 60 years ago, and remodeled, and expanded, and improved, it’s a hell of a lot easier, simpler and cleaner to just take the date-of-death value as the basis than to try to really calculate how much grandma invested in the place.
By the way they do tax assets in retirement accounts (401k or IRA) based on the cost basis of the original owner and at the higher regular income tax rate (not the capital gains rate).
The step up in cost basis at the time of a person’s death only applies to non retirement assets.
“Democrats are the greediest people you’ll ever meet.”
Of course. That’s why they want to take everyone ELSE’S money and give it away, they haven’t the character to give much of their own.
STINGIEST bastards on Earth are leftists, among whom charitable giving jiggles the needle at about 2%.
bmp
Here’s a thought. Most Reps/Senators make millions as “public servants” and many stay until death in office as long as they are re-elected (Byrd, McCain, others) not to mention the “retirement packages” and death benefits they receive- continued salaries after leaving office, so why not extend the “Capital gains” to include accumulated wealth by Politicians?
I would suggest that any and all gains made during “public service” are subject to the capital gains tax rate plus 25% upon retirement from the senate or house or upon their death if they pass while in office.
The only reason politicians pass the laws they do is that they are exempt from the impacts. When you tie the pain to their actions, maybe they will look to truly serve the public rather than themselves.
I like how they call it a loophole. Why should I pay capital gains on a car that I inherited? John Kerry didn’t pay dime of inheritance on the Billions he inherited.
Time to contact this guy’s office and voice your displeasure.
Just because they cannot live within a budget does not mean they can increase the tax yoke on our necks!
Somehow this will not affect the super rich who fund the democrat party.
What they don’t want to tell you is that this tax scheme affects EVERY possession that a parent owns and passes down to a descendant.
So, it doesn’t mean just stocks and bonds, or “real estate investments”. It means the primary residence and everything in it. It means the painting on the wall, that was bought decades ago direct from the artist, which might now be worth 100K. It means dad’s coin collection or mom’s stamp collection. It means the old car in the garage, once considered junk, that is now a hot collectible. It means the Luger or Japanese sword that dad brought home from the war. It means everything. Look on eBay and see what some ordinary household items are bringing, like the old electric fan that recently sold for $20K which might have cost $5 when new.
Art, antiques, and collectibles are already unfairly burdened by a special 28% “capital gains” tax rate. That isn’t enough for the tax’n’spend liberals, they want more and more and more.
**Democrats are the greediest people you’ll ever meet. On the bright side, the deceased will always have a chance of voting them out.**
But, but, but, the Dems need all of this money to bribe the voters with “free” stuff.
“It’s time to stop subsidizing massive inheritances for the rich and start investing in everyday Americans,” Van Hollen said...”
The Biden family going to have one hell of a fight after Joe checks out.