4 ms·
Seems the solution to that (if u think it’s a problem) is eliminating step up basis. The reason that works is that basis is reset at death.
by arn 5y ago
Seems the solution to that (if u think it’s a problem) is eliminating step up basis.
The reason that works is that basis is reset at death.
- imgabe 5y agoEstate taxes make a lot more sense. Heirs don’t need to get free billions of dollars for doing nothing and I have no problems with taxing dead people.
- arn 5y agoWell, estate tax already exists.
- imgabe 5y agoSure, but it’s pretty toothless and there are many ways to avoid it.
- spikels 5y agoWhy not both? They are different things. The free step-up in basis at death makes no sense for the very wealthy. The rule originates from the difficulty in determining the basis of assets of dead people. The very wealthy have accountants that track this. Warren Buffett can pay capital-gains tax AND estate tax.
- imgabe 5y agoSure, the free step up basis does seem like a bad thing. Getting rid of that sounds like it makes sense. That is a far cry from taxing unrealized gains as income which is what a lot of people seem to want to do.