Despite the flowery promises in the White House “American Families Plan” Fact Sheet, The Heritage Foundation summed it up as follows.

Biden’s American Families Plan will hurt families. The AFP would increase Washington’s control of preschool, child care, community college, and four-year colleges.

The AFP is a wolf in sheep’s clothing, promising “free” assistance that will result in more debt for our children and grandchildren to pay.

The wolf promises to ease our burdens but, in reality, stands ready to take charge of the decisions that families and communities know how to handle best.

“More debt for our children and families.” Bingo. Including potentially catastrophic financial disasters for untold numbers of those children and families.

Part of Biden’s plan to fund the AFP is by amending federal estate tax law — the so-called “death tax” — that would eliminate stepped-up-basis on appreciated assets inherited by family members, meaning heirs would be forced to pay taxes on assets that increased in value during the lifetime of the deceased relative.

As reported by Just the News, current federal estate tax law — not to be confused with the various state inheritance tax laws — includes a stepped-up basis tax provision that allows an heir to report the value of an asset at the time of inheriting it, thus “stepping up” the cost basis to the current value of an asset at the time of the inheritance, at which point they could sell the asset immediately and essentially avoid paying capital gains taxes, or retain the asset and either sell it later at an appreciated value, at which point they would pay capital gains tax on the increase between the inherited value and the selling price — or retain the asset and pass it to heirs at death. //

If we’re talking investment portfolios — fine; we can have that debate at a later time. But we’re also talking about family farms — many of them, generational family farms — as well as other family businesses. //

One potential family disaster is the fact that most family businesses consist largely of illiquid assets. Large plots of land owned by farmers are a perfect example; the land can often push a modest farm valuation past Biden’s $1 million threshold. //

“Farmers responsibly pay taxes to contribute their fair share to our country. They should not have to face tax burdens to pass their land from one generation to the next. This is how we keep generations of families farming.

“Therefore, we need to maintain protections to ensure the long-term success of family farms. They are the backbone of economic activity in rural areas, and we know the production of food and fiber is a national security issue.” //

Jmied01 • 19 minutes ago

“If we close that loophole, that saves us $400 billion”

Ala Ozark’s Marty Byrde: The *** it Does.

As if merely because it exists, you were always entitled to it? Removing more money from tax payers under implied threat of force is SAVING you money?

Well, I’m just going to rob a bank! I’m only SAVING MONEY. Knocking off the corner store? Creating new income! Nabbing the purse of the little old lady across the street? Generating revenue! //

scgrl625 • an hour ago

Here's some facts. If you plan on leaving your spouse or children anything, set up a revocable trust. If a spouse or child receives your inheritance, they will not have to pay inheritance taxes on the monies and property received from that trust. Also, there are only 6 states in the US that require an inheritance tax. Those states are PA, NE, NJ, MD, KY and IA, but not all tax laws for those states are the same. Some heirs may have to pay, and some may not.

Here's a quote from Smartasset.com, story titled "All About The Inheritance Tax" by Amanda Dixon, dated 7-30-2021.
"If the value of the assets being transferred is higher than the federal estate tax exemption (which is $11.7 million for singles for tax year 2021 and $23.4 million for married couples), the property can be subject to federal estate tax. States have their own exemption thresholds as well. Estate taxes are deducted from the property that’s being passed on before a beneficiary claims it. However, President Joe Biden has proposed eliminating the “stepped-up basis,” a provision that resets the value of inherited property to its current market value when its original owner dies." //

skeptic62 • 6 minutes ago • edited

I would encourage those who would be impacted by Biden’s government seizure by taxation to consider this. Choose a worthy heir early and sell your property, farm or business to your heir for a dollar plus a lifetime lease for you and your spouse. You don’t have to move out of your house. You don’t have to shutter your business. Everything stays pretty much the same. So, when the Grim Reaper comes a callin’ Uncle Sam can only seize your liquid assets. Done right, this would be a much smaller bill. //

johncv skeptic62 • 4 minutes ago

They have you covered with "gift tax" rules. Maximum per year "gifts".