No. of Recommendations: 7

<<Well, count yourself as another Bush (tax cut) supporter. Congratulations.>>

I didn't know Bush favored getting rid of the stepped-up basis along with the inheritance tax.

"No, more than favored, rather it is already passed into law.

See here -

excerpt - Cost basis: What do you guess this time? If you expect it to be market value at the time of death, you are wrong! The 2001 "tax cut" did away with the stepped-up basis after 2010. In its place will be the decedent's adjusted cost basis. "

It was all sleight of hand and misdirection. By calling the estate tax the pejorative death tax and whipping people into a frenzy about something that does not affect the great majority of them, he was able to raise their taxes (and complicate their lives) by abolishing stepped-up basis and replacing with carry-over basis (like lifetime gifts), thereby assuring that all the heirs who inherit from estates that would never have estate taxes pay considerably larger capital gains taxes.

I thought (and continue to think) that it is bad policy, but the politicking was first rate and masterful.


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