Would it be easy to craft legislation that would protect family farms and small business owners without paying off the rich? Thanks. --CGE
Protections like these were already in the law before 2001. Democrats proposed assorted measures expanding them, but the Repubs went for the whole enchilada.
Interesting, to me at least, is that the 'repeal' entails a tax increase on the less rich among the rich, because it makes the capital gains on inherited financial assets taxable. Presently there is a 'step-up' rule wherein the person who inherits such assets need not only pay capital gains (albeit at reduced rates and with other exceptions) that accrue from the date of death of the donor, not gains accrued by the original holder in his/her lifetime. Now if you inherit stock, you will have to find Granny's records to find out what your gains are when you sell. Something like this was passed in the early 1980's but proved impossible for the IRS to enforce, so it was repealed. Including it in the 'repeal' made the cost appear cheaper. Slemrod has said this was a 'bait and switch' exercise, because the measure will probably be repealed again, once the estate tax is safely buried.
mbs