Obama’s Proposal Would Make Effective Death Tax Rate as High as 68%

Stephen Moore
The Daily Signal

President Obama’s proposed changes to inheritance and capital gains taxes could raise the estate tax rate in the U.S. to the highest in the industrialized world.

The plan, announced during the State of the Union address, would eliminate what is called “step-up basis at death” on capital gains taxation. And the top capital gains rate would jump to 28 percent from 20 percent.

Under current law, when a parent or grandparent dies, the increase in the valuation of his or her asset from when it was originally purchased is not taxed.

This is to offset the effects of the estate tax.

Obama’s plan would tax estates and impose the regular capital gains tax on inherited assets — a business, property or stocks.

This could bring the effective death tax rate to 57 percent, according to Dick Patten, chairman of the American Business Defense Council.

Including state inheritance taxes, the rate would average 65 percent but could go as high as 68 percent…



The article continues at The Daily Signal.




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