Washington DC, August 5, 2021 – Individuals pay a 40% tax on the full market value of their assets, when they die, not just on the appreciation of those assets. That is why they receive a “step up in basis” to this value. On July 21, 2021, Senators Thune, Daines, McConnell, Crapo and ALL Senate Republicans Urged President Biden to keep step up in basis.
U.S. Sens. John Thune (R-S.D.), Steve Daines (R-Mont.), and Mike Crapo (R-Idaho), members of the tax-writing Senate Finance Committee, and Mitch McConnell (R-Ky.) led the entire Senate Republican caucus in urging President Biden to abandon his effort to impose a capital gains tax increase on family-owned businesses, farms, and ranches. Repealing this part of the tax code would have a devastating effect on multigeneration operations, which could lead to job losses, liquidation, or outright closure.
“If step-up in basis is eliminated it will be an economic disaster for family businesses, their employees, the local communities, and the national economy,” said Pat Soldano, president and CEO of the Policy and Taxation Group. “Family businesses create 59% of the workforce, 83.3 million jobs, and 54% of the GDP, $7.7 trillion. Elimination of step up and an increase in capital gains could result in an 81% tax on the business owner when he dies.”
About Policy and Taxation Group
Policy and Taxation Group (PATG) is dedicated to the ultimate repeal of estate, gift and generation-skipping transfer (GST) taxes, and the elimination of the destructive effect those taxes have on families, family businesses, job creation, the national economy, and government revenues.
For more information, please visit https://policyandtaxationgroup.com/