Quote:
Originally posted by Tyrone Slothrop
The GOP leadership in Congress this week is pushing for a permanent repeal of the estate tax, a move that would do harm to the government's balance sheet about equal to Social Security's 75-year deficit.
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FWIW, the Wall Street Journal observes that the estimated revenue costs of repeal are massively overstated, because the bill under debate also would repeal the "stepped-up basis" provisions currently in effect. That is, when momma dies, and you inherit stock, your basis is the price as of the date of death (some modifications apply). If the estate tax is repealed per this bill, you now will take her original basis. Any sales will be taxed at the k-gains rate for that. This is estimated to replace nearly all the revenue that would be lost by repealing the estate tax.*
*FWIW, small estates will be worse off under this rule, since they'll have to pay some tax whereas before they had to pay none.
