Capital Gains Tax Changes in the Reconciliation Bill

[Geee]

American Thinker

Because Democrats are trying to incorporate the president’s American Families Plan into their $3.5 trillion reconciliation bill, Americans should be happy that it’s having such a devil of a time getting through Congress. Biden’s “plan” is to raise taxes, and not just by upping tax rates, but also by changing how and when taxes are collected. The proposed changes to the capital gains tax are supposed to target only the super-wealthy, but that’s also how the income tax was sold, and we know how that went.

On April 28 the White House released a fact sheet that outlines the American Families Plan and its designs on your money. The fact sheet is rather lengthy, but the part that deals with capital gains is conveniently located at the very bottom of the webpage under this heading: “End capital income tax breaks and other loopholes for the very top.” Only the first paragraph of this section deals with taxes on capital gains; here’s how it ends:

The President’s plan will close this loophole, ending the practice of “stepping-up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity. The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business. Without these changes, billions in capital income would continue to escape taxation entirely.

Maybe those billions should “escape taxation entirely.”