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100%. There will probably be an initial calm, and maybe markets will jump as he starts giving us away to China and everyone else, but in the end he will destroy our economy within 12-36 months.
I can get why he would do this but there are more practical ways to tax such as going by net worth...only tax inheritance over $5 million and adjust it for the real inflation rate (Not the fake CPI)
Why tax the middle class person's inheritance? The top and bottom already suck from the middle and upper middle class worker bees the most as a percentage of ones total income. The top pay a relatively low percentage of their income while the bottom are net leeches.
Not true. Here's a CRS report chart that shows which income groups are not paying their fair share. If the share of income is higher than the share of individual income tax paid (light blue bar is higher than dark blue bar), those in that income group are under-paying, not paying their fair share:
Right now you don't get taxed on receiving it unless the estate is above 5 million for an individual. If it is above that amount then yes - double taxation for the amount of assets above 5 million. That does not include state taxation - just federal. Every situation is different.
A financial planner told me his firm is planning on the 5 million exemption dropping back to 2.5 million under Biden.
Biden's stated plan is to eliminate the "step-up" basis for inherited assets.
Now: You inherit a house from your parents that they bought for 100k and it is now worth 400k - that 400k is your cost basis. You sell it for $400k and pay zero capital gains tax.
Biden's plan: You inherit the same house and sell it for $400k - you will get hit with tax on a $300k gain.
Same with stocks or other financial assets. Inheriting and IRA or 401k? It will be worth much less under Biden after taxes.
No but if you work hard & buy your own home, it is better to be able to keep some of that money if a spouse dies & you need to sell it, to live. The stepped up basis can also help older people who have a home. Becasue when a spouse dies, the surviving spouse can take the stepped up basis.This is not about rich people, this is about everyday people.
Exactly. Biden's plan on eliminating the "step-up" will slam the middle class. Think about Mom and Pop businesses' property and other assets. Biden will tax the hell out of them when they're inherited. Biden to the middle class: F YOU, suckers!
Biden's stated plan is to eliminate the "step-up" basis for inherited assets.
Now: You inherit a house from your parents that they bought for 100k and it is now worth 400k - that 400k is your cost basis. You sell it for $400k and pay zero capital gains tax.
Biden's plan: You inherit the same house and sell it for $400k - you will get hit with tax on a $300k gain.
Same with stocks or other financial assets. Inheriting and IRA or 401k? It will be worth much less under Biden after taxes.
In other words - govt. taking your money.
It's modeled after an Obama era proposal which allows for exclusions:
per person $100,000 indexed for inflation plus the existing exclusion of $250,000/person - $500,000/couple on a house.
A married couple passing away with an $800K house they bought for $100,000 would owe nothing. A married couple with $500,000 in unrealized stock gains and no other assets would owe tax on $300K.
Per the WSJ.
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