Business / Government Watch / Opinion / Politics

Breaking: Biden Administration Proposes New Death Tax

taxWashington, DC –  During President Biden’s address to a joint session of Congress last night, he proposed that Congress take up the administration’s recently proposed American Families Plan, which includes the creation of a new higher capital gains rate (over 40%) and a new capital gains tax due at death. This second death tax comes in addition to the current federal estate tax, which could make total liabilities for top taxpayers hoping to pass on a family farm or business well over 60%.

AMAC Action and other small business associations are urging Congress not to take up this part of what has been called the American Family Plan, which President Biden will introduce tonight during his address.

AMAC Action President Bob Carlstrom said: “The creation of a new capital gains tax due at death could hit multigenerational family business owners at the worst possible time. It turns out that many of the taxes focused on the so-called wealthy proposed by Congressional Democrats will actually end up affecting the middle class and small family businesses. AMAC Action, together with other small business and advocacy organizations, is urging lawmakers to oppose the new capital gains tax due at death. Congress should be focused on ways to help small businesses keep their workers employed as the country works through this pandemic, rather than on coming up with new ways to tax them upon the death of a business owner.”

Americans for Tax Reform recalled a New York Times post on a previous attempt by Congress to change what is called “step up in basis” laws. From their blog on the subject available here:

As noted in a July 3, 1979, New York Times article, it was “impossibly unworkable”:

However, almost immediately, 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.

The Biden administration has indicated that they may not seek changes to the current estate tax but are considering higher capital gains taxes, including those due at death. So while they may not propose hiking the death tax in the traditional sense, a second death tax in the form of capital gains at death will be proposed, and the issue of “step up in basis” is on the table as well.

AMAC Action will continue to monitor any efforts to roll back the 2017 Tax Cuts, and Jobs Act changes. As of now, no meaningful changes to the death tax have become law. President Trump’s signature tax bill, “The Tax Cuts and Jobs Act,” still remains the law of the land. Still, Congress is gearing up to consider a number of tax changes this summer to fund infrastructure and the priorities that President Biden will lay out tonight, including, as is being reported: a universal preschool program and two years of tuition-free community college. Please stay tuned for more updates as Congress debates which legislative proposals to move forward with this year.

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Lora
1 month ago

It is getting so rediculious. Give and give and give to immigrants crossing our borders but take away everything from US citizens. Take away and make the poor business owners pay and pay and pay to the point that they cant continue to run their business and make any kind of profit, but give to illegal immigrant. What happened to taking v=care of our own. Vets, Homeless, Poor and elderly? Sickening what the Democrats are trying to do . Control us all. Sickening.

Karen
1 month ago

As a middle class citizen, I’m tired of getting kicked in the ass with all the nonsense happening with Biden and his pagan cohorts. Keep prayin’ Reps!

Tim D.
1 month ago

I guess it’s only appropriate for a “dead man walking” to propose a “death” tax. You can fight this! Show the Dems… Just NEVER die! ‘Cause if you do, you’ll end up VOTING Democrat anyway! These Biden decrees are getting really old and more annoying, but HEY! He’s uniting the country…

Jeanne
1 month ago

He is as bad as nancy and chucky.

Garye
1 month ago

Do you notice that the democrat liars are quick to tax and steal OUR families accumulated wealth, but they always exempt themselves and become wealthy through corruption and never give up their families wealth.
Think jobama,obama ,hillary,schumer,Hillary,,, etc.
These people are evil liars.

Robert
1 month ago

In the famous words of the socialist in chief BO, ” You didn’t build that business”. Please tax us more so the goofballs in Congress can give it all away (enter large flushing sound) to their various friends, their various pet giveaway “green” projects, and to their communist pals around the globe. You know, the same people that want to destroy us. Sounds like a great plan. Way to represent us.

Jeanne
1 month ago
Reply to  Robert

Corrupt and rotten to the core. Evil traitors.

Anna Young
1 month ago

If you require additional funds, I recommend increasing membership dues and concentrating on acquiring new members. Everyone has their hands out for our Social Security dollars in donations, in addition to price increases everywhere. I joined because I thought you were the good guys and were involved in making our seniority easier and more financially positive. I may not renew my membership next time…

Wanda
1 month ago

If you have property and do not expect to move and are elderly, go ahead and give it to your kids NOW…with the stipulation in the deed that you can live there as long as you wish …. then when you die, you don’t have anything to allow the government to tax. There are always loop holes in anything.

Garye
1 month ago

It amazes me that some people still believe that government is giving you something free – the only $$$ they have is taken from working American Citizens!!!
The democrats are stealing and spending OUR money!!!

Garye
1 month ago

Useless , corrupt democrats, they either lie, tax or steal from the Citizens of America.
When will their uninformed supporters wake up?
Do you recognize they are lying to you too???

King Chuckie
1 month ago

This is ridiculous. The death tax was one of the most heartless things to a person who has just lost a loved one. During Mr. Trump’s presidency, it was finally done away with. Now this jackass some people call president is making a new death tax. And most of my fellow Americans sit there with their thumbs up their asses saying; What can we do about it. The death tax doesn’t benefit anyone but these corrupt politicians.

Judi
1 month ago
Reply to  King Chuckie

Idiots like Joey Biden have never worked a REAL job in their pathetic lives, so they don’t care about hard-working Americans. They have lived off the government dole (and CHINA) all their useless lives.

Donald Gleason
1 month ago

Now they will tax you when you die. Ridiculous

Sharon Clark
1 month ago

This president and his cronies are destroying the United States of America and it is disgusting. Taxes, taxes, taxes. Pretty soon this government will be taking all of our income. I am so for term limits, congress cannot vote on their wages and benefits, you do not receive a lifetime pension for working two terms in your position. These positions were not meant to be a “job”. There should be a cap on the amount of money a candidate can raise for his/her campaign. No outside of state donations to a campaign. There should be no free college.I paid for my own college and because of it I was able to get a good job and that it why you go to college? So get of your asses and go to college or find the job you really like. Stop asking everything for free. Get off welfare and pay your way. There is nothing in this world that your are entitled to.

par
1 month ago

That idiot is taxing everyone to get money, even the dead. Why not the dead voted for him.

Ben
1 month ago
Reply to  par

The dead did vote for him, it was a rigged election.

Wanda
1 month ago
Reply to  Ben

Yes it was rigged.

Oren
1 month ago
Reply to  par

But, when you die, and continue paying taxes, you will also remain on the voter’s role.

Wayne Peterkin
1 month ago

The Democrats really believe that every dollar that we have earned belongs to them and that we should be grateful they allow us to keep and use any small part of it. That is the big government mentality, and they use the money they steal from us to buy votes by redistributing whatever wealth we have to others, often including themselves. It is the most fundamental difference between liberals and conservatives. A truly great quote by an outstanding economist, Dr. Thomas Sowell, was: “What is your fair share of what someone else has worked for?” Biden would incorrectly answer “All of it”. This administration has proven in just 100 days to be the most corrupt and immoral in my 77 years. They are truly evil.

James
1 month ago

When the Government is No Longer
Of the People
By the People
For the People
It Is the Duty of The People
to ABOLISH said Government…

Randall Smith
1 month ago

The only solution to the quagmire that is our Federal government is TERM LIMITS. We must get rid of all these career politicians and get back to true representation

Xtech
1 month ago
Reply to  Randall Smith

True! But they will never vote themselves out of such a lucrative money-making career!

Wayne Peterkin
1 month ago
Reply to  Xtech

So we exclude them from the process. It’s the only way.

Sharon Clark
1 month ago
Reply to  Xtech

No, but we can..

Wayne Peterkin
1 month ago
Reply to  Randall Smith

Yes, but the only way we get those limits is by an Article V Convention of the States which is being organized with many states already on board for the sole purpose of developing necessary constitutional amendments, term limits among them, and get them ratified. That convention is completely and totally outside of Washington’s control. Not even the SCOTUS can interfere. It was the means our founders gave us for the people to take control and fix an out-of-control government, and should we fail to use it now the nation is doomed.

Steven Huskey
1 month ago
Reply to  Randall Smith

The problem is the voters who keep voting for these people.

K. Martin
1 month ago
Reply to  Steven Huskey

You mean the Dominion machines that keep voting for these people.

Larry Johnson
1 month ago

Republicans won’t ever win anything again until Dominion Vote Tabulating machines are relegated to the dust bin of history, and all such contraptions are outlawed from the process. That means, IMO, Republicans must control both houses of Congress plus the White House before the 2022 mid-terms. Give that some thought. #SaveAmerica

Last edited 1 month ago by Larry Johnson
Xtech
1 month ago
Reply to  Larry Johnson

Correct! While all the noise was about mailin voting and such, the election was actually STOLEN by the massive vote changing accomplished with the Dominion machines. The fact that Commicrats fight to kill voting audits PROVES there’s something they desperately want to hide!

Bonnie
1 month ago
Reply to  Larry Johnson

Are you suggesting that Trump can still get back into the WH in 2022? Are you thinking the audits that are going on will overturn the election?

Phillip
1 month ago
Reply to  Larry Johnson

How can Republicans control the White House before the midterms? Best we can hope for is both houses of Congress, especially with some Tea Party type newcomers. Then we can allow gridlock to prevail until 2024.

kevin
1 month ago

The Dim’s have never met a tax they didn’t LOVE…

J. Shenk
1 month ago
Reply to  kevin

Though not a fan, Ross Perot did make the occasional savvy statement during his misguided campaign for President including this one: “giving more tax money to the government is like giving drugs to an addict”. Meaning that additional tax revenues will only be squandered, and our (Democrat) politicians, like the hogs they are, will only return to the trough wanting more. Sad, but true.

Dave Shreeve
1 month ago

Isn’t a death tax a violation of the 4th amendment? It is an unreasonable seizure of private property.

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