During the 2020 Presidential campaign Democratic candidates have made many proposals for changes to the tax code, ranging from changes to the tax rates to the imposition of new 5% excise tax and a national sales tax. As the Democratic Nominee for President, Joe Biden has a tax plan that includes the following proposals:
· Eliminate the step-up of the cost-basis for inherited property,
· Increase estate and gift tax rates by an unspecified amount (it is now 40%), and
· Decrease the estate tax exemption from $11.58 million to $3.5 million, and the gift tax exemption from $11.58 million to $1 million.
The proposal for changes to the Estate and Gift taxes reverses the long-standing policy on reforms to the tax code made ever