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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121217  
Subject: Re: Bush Elected = Elimination of Estate Tax? Date: 10/22/2000 3:38 PM
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libc continues his crusade. I should put on my LP with Bobby Short singing "Johnny One Note." (Atlantic SD 2-610).

Having made that snide remark I should say that I favor the elimination of the estate tax. However, what I can't see is a provision of the failed bill from a couple of months ago. This would have eliminated the estate tax while continuing the step-up in basis. (There are of course complications that a short message can't address properly.)

So let us consider two possibilities. Both assume the estate tax goes away, and the step up continues.

1) You sell something at a hefty profit, and pay the tax. Then you die.

2) You die, and your heirs sell the something immediately, and pay no tax, because of the step up.

I can think of no reason why these two situations should be treated differently for tax purposes. As I see it, if you had to pay tax on something when you were alive, then it is only equitable that somebody should have to pay that same tax if you are dead.
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