- President Biden plans to fund ambitious spending programs with hike in estate taxes targeted at rich
- Tax experts warned that the middle class will be badly affected by changes
- It could mean family assets, such as homes, businesses and farms, have to be sold to meet capital gains bills
- Republicans have asked for assurances that family farms will be protected
The Biden administration’s plan to hike the inheritance tax bill for wealthy Americans will snare the middle class, farmers and family businesses in a double taxation dragnet to finance its massive spending plans, according to tax experts.
President Joe Biden’s vast expansion of social spending programs will be funded in part by ending ‘step-up in basis,’ a provision which protects estates from capital gains tax at death.
Biden says the aim is to close a loophole that allows rich families to pass wealth from generation to generation.
But congressional Republicans warn it could have a devastating impact on family businesses, particularly farms, and Democrats have begun considering ways to limit the damage.
Chad Silver, attorney, said the rich would find new loopholes while the middle classes would get hit with bills on ‘unrealized gains’ – property and other assets that have risen in value.