“The core element of Biden’s plan turns on taxing capital effectively, and the linchpin of that is collecting a tax on the unrealized gains at death — or they’ll escape taxation completely,” said Steve Rosenthal, a tax expert at the Tax Policy Center, a nonpartisan think tank. “Billionaires and the superwealthy create dynastic wealth by avoiding selling their stocks until death. If we just raised the capital gains tax rate, the rich would just carry their assets to death and avoid them. But if we’re going to tax them at death and induce more sales, that gives Biden much more latitude. It’s absolutely crucial to his plan.”

Source: Washington Post July 09, 2021 22:18 UTC