40% Short Term Capital Gains tax -- a catastrophe?

[loves2read]

Originally Posted by Avondalist

The estate tax is only assessed on the part of the estate that exceeds the threshold.

With a $3.5 million threshold and a $4 million estate, only $0.5 million of the estate would be subject to the tax.

You are anticipating estate reduction then...

[loves2read]

Originally Posted by RationalExpectations

But
(a) it doesn't materially contribute to the concentration of wealth - in fact, it disperses wealth rather than concentrates it
(b) it would have been passed down to heirs regardless

But it is tax free
If held in the estate, depending on the estate size at death of remaining parent, there could be sizable tax bill...depending on taxable estate threshold at time of death...

[DaveC9114]

Isn't getting rid of the stepup thus triggering long-term capital gains and estate tax going to be double taxation?

That would be like 70 or 80%. Good thing I'm not rich.