Individuals pay a 40% tax on the FULL MARKET VALUE of their assets, when they die, not just on the appreciation of those assets.
That is why they receive a “step up in basis” to this value. On July 21, 2021, Senators Thune, Daines, McConnell, Crapo and ALL Senate Republicans Urged President Biden to keep step up in basis.
See link to Press Release . Note that Policy and Taxation Group was quoted in this Press Release.
“If step-up in basis is eliminated it will be an economic disaster for family businesses, their employees, the local communities, and the national economy,” said Pat Soldano, president and CEO of the Policy and Taxation Group. “Family businesses create 59% of the workforce, 83.3 million jobs, and 54% of the GDP, $7.7 trillion. Elimination of step up and an increase in capital gains could result in an 81% tax on the business owner when he dies.”
Read full press release, “Thune, Daines, McConnell, Crapo Lead Entire Senate Republican Caucus in Urging Biden Administration to Drop Step-Up In Basis Tax-Hike Proposal “.
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