In order to turn President Biden’s sought after capital gains tax increases into revenue raisers, the President has also proposed dramatic changes to estate tax law.  The Administration’s proposal would not just repeal of “stepped-up basis” in assets transferred at death, but would also tax those “built-up gains” at death as though the assets had been sold. These drastic changes in estate taxes could well make it impossible for privately-owned businesses and family farms/firms to be passed to heirs. [The estate tax changes come on the heels of President Biden’s recently announced proposal to raise the capital gains tax rate to 39.6/43.4 percent, which analysis have suggested would actually reduce rather than increase federal revenue]. 

CIRT has joined a cross-section of organizations as part of the “Family Business Estate Tax Coalition” to strongly oppose repeal of “stepped-up basis” and the taxation of “built-up gains” at death.  [See details of the FBETC letter here].