Tax Plan May Retain Massive Wealth Transfers

GOP plan supports easy transfer of wealth generation after generation.

Republicans in the House of Representatives have proposed a tax plan that allows a continued transfer of wealth between generations, according to the Wills, Trusts & Estates Prof Blog in “Proposed Tax Policy By Republicans Would Enable Wealthy to Pass On A Massive Income Tax Deduction to Their Heirs Upon Death.”

The proposal would eliminate the estate tax entirely.  However, it would keep the step-up basis for capital gains.

This would let the wealthy to pass assets on to later generations of their family tax free and allow for a greater concentration of wealth.

The plan also proposes to keep the depreciation deduction for rental property.

Reference: Wills, Trusts & Estates Prof Blog (Nov. 6, 2017) “Proposed Tax Policy By Republicans Would Enable Wealthy to Pass On A Massive Income Tax Deduction to Their Heirs Upon Death.”