On Wed, 2 Aug 2000, Max Sawicky wrote:
> NN: If this is accurate, won't this make the estate tax "cut" really an
> increase in taxes on middle class inheritors who always received their
> shares not only tax free but with reduced potential capital gains.
> Don't forget that since we're talking about two percent
> of decedents and taxable estates tha tmust exceed $1.3
> million or so now, "middle class" is a real stretch in
> any allusion to those who pay this tax.
My point is that for the 98% of estates that have no estate tax, this bill will mean essentially a tax increase whereever stock or other capital goods are passed on, since before the whole amount was passed on tax-free with a stepped-up basis. It seems like this bill is a complete tax loser for all estates other than the top 2% of estates.
Or am I missing something where those bottom 98% of estates gain anything from this bill?