Libs.... sticking it to the little guy yet again....
https://www.foxbusiness.com/economy/biden-tax-proposals-hurt-small-businesses-over-time-study
President Biden has laid out a sweeping tax plan to raise the rates paid by wealthy Americans and corporations – but his proposal may inadvertently increase the tax bill of small businesses across the country.
Biden has called for imposing higher taxes on capital gains and income for the top slice of income-earners, in part by closing a decades-old loophole that allows individuals to inherit appreciated assets at current market value with no taxes on the unrealized gain. Known as the "step-up" basis, the quirky tax code allows beneficiaries to sell those assets and pay capital gains based only on the time they receive the asset and the time they sold it, allowing them to minimize the tax penalty.
But the Tax Foundation, in a new analysis published Wednesday, warned that taxing capital gains at death could potentially hit small, family-owned businesses.
Under current law, when a business owner dies and transfers the business to an heir, that individual does not incur any additional capital gains tax liability. If the heir chooses to sell the business, they only have to pay capital gains tax on the gain during the period they owned it rather than the starting value.
https://www.foxbusiness.com/economy/biden-tax-proposals-hurt-small-businesses-over-time-study
President Biden has laid out a sweeping tax plan to raise the rates paid by wealthy Americans and corporations – but his proposal may inadvertently increase the tax bill of small businesses across the country.
Biden has called for imposing higher taxes on capital gains and income for the top slice of income-earners, in part by closing a decades-old loophole that allows individuals to inherit appreciated assets at current market value with no taxes on the unrealized gain. Known as the "step-up" basis, the quirky tax code allows beneficiaries to sell those assets and pay capital gains based only on the time they receive the asset and the time they sold it, allowing them to minimize the tax penalty.
But the Tax Foundation, in a new analysis published Wednesday, warned that taxing capital gains at death could potentially hit small, family-owned businesses.
Under current law, when a business owner dies and transfers the business to an heir, that individual does not incur any additional capital gains tax liability. If the heir chooses to sell the business, they only have to pay capital gains tax on the gain during the period they owned it rather than the starting value.
