Biden Death Tax Impacts Farmers and Middle Class Families

The new death tax would apply to many people making under 400k a year, going completely against what the media and Biden campaign have been repeating for the past few years. It’s another indirect tax that will impact roughly 95% of farms as well as the middle and upper middle class. Ironically Biden wants to do this through the American Families Plan. Which seems to be a plan to take American families hard earned money away. The technical procedure to implement the death tax is to do away with what’s known as a step up in basis. The original cost of the asset (being a home, farm or certain retirement portfolios) is the typical tax basis. The fair market value of the asset at time of death, which is much higher or stepped up from appreciating over time, is what the beneficiary would typically receive as the new tax basis, effectively doing away with capital gains tax on the deceased. For renting, the step up in basis results in a larger depreciation expense on rental income. Biden wants to eliminate step up so rightful heirs will pay much higher federal taxes and pay more renters tax on their inheritance from the deceased. This is going to cause even more inflation for food, home prices and the cost of rent. It’s a tax on the American dream.