Democrats want to make death a taxable event once again by repealing the stepped-up basis and then doubling the pain by imposing a capital gains rate as high as 43.4 percent. This will cause family heirs to liquidate assets or the inherited property itself to pay these untenable tax rates.
Last week, Republicans on the Ways and Means Committee held a meeting to hear from family farm owners about the impact the Democrats’ tax plan would have on them. The testimony was powerful, here’s an excerpt:
Pat McDowell, owner of McDowell Ranch, warned that Democrats’ repeal of stepped-up basis threatens his family’s ability to pass their five-generation cattle operation on to their niece:
“This is our story. We are 59 to 65 years old. Our goal is to pass our family ranch and farm to my niece and her husband because they want to continue our family business. We’ve done considerable estate planning which has cost a lot of money, and time. Our estate plan has been centered on using stepped-up basis. The Biden administration proposal totally undermines our estate plan. This plan punishes our family, just because we want the next generation to be able to make a living in agriculture. […]
“Taxing farmers and ranchers out of business only demolishes our national food security. Our kids want to be able to continue to help feed our nation. […]
“The loss of stepped-up basis will kill our family farm.”
President Biden says that family farms won’t be hit by his massive tax hike but hasn’t explained how that would work and as Ways and Means Ranking Member Kevin Brady said,
“Ag folks are smart. They remember when Congress tried to do the same thing related to the death tax with similar provisions and carve outs for family-owned farms and businesses. That effort failed miserably. They’re not easily duped, and they understand where this is headed. And they’re very fearful about this. In fact, they’re considered to be wealthy and should be in some way punished. That’s how they feel provisions like this treat them. And it alarms them.”
Everything that glitters is not gold. Inheritance isn’t something a lot of us ever had an issue with. My inheritance consisted of due credit card bills and funeral expenses. This is only an issue of the very very rich of which I am not part of. From my perspective we should let heirs receive up to 1 Million dollars each individually inheritance tax “free”. Beyond that it becomes income and is taxed accordingly. A company, ranch, business, hotel, houses, cash, stocks, bonds, art, cars, airplanes, etc., or what ever is inherited is evaluated for it’s worth and what ever exceeds 1 million gets taxed as income. If I were very very rich I would think that wasn’t fare, but I’m not part of a very very rich family and from my lower middle class view I see this issue as whining.
This is a perfect example of why we should #StopTaxingIncome and all inheritence, investments and savings. Learn about FAIRtax at fairtax.org/about/how-fairtax-works
Better to let Greek lightning take its coarse after the insurance lapses.
The Demacratic run states are already running people out of their states.If this death tax is ever passed the federal government will be running people out of the country. Too many people in this country expect to be paid for nothing and the Demacrats have to keep paying them for their votes!
You didn’t build that anyway (remember your nothing but a bunch of deplorable’s and we’re handed everything you have anyway. So what’s the difference if we take back your life’s work and give it to the corrupt government. The elites are far better off controlling everything and everyone anyway so what’s the difference?j
I’ve never quite understood the Consitutional basis for a Death Tax. At least not to the extent that goes above a trivial amount. But … we all know how the Federal Government feeds it greed by inflation, unjustified wars, etc. BTW, it is long, long time past the justification of term limits for Federal Senators and House Representatives. Allowing no term limits just feeds the politicians urge to Rule rather than Govern.
This is so despicable! What the —— is happening to our country? These so called politicians work for us ! Can’t they leave an inheritance alone? Everyday I wake up, and some stupid nonsense happens. We’re sick of it! It puts us in a bad mood! It’s so unfair ! I’m getting to the point where I don’t want to keep up with the current events of the day. This shitty administration implements crap everyday! Vote in 22, and 24, or we’re doomed . ????????
Crazy! We work so hard to put away money to take care of our needs in retirement, and pass on the remainder to our children, and the Democrats want to take away their inheritance!