The inheritance tax could be making a comeback under the Biden administration.
The president has been proposing new taxes to pay for social programs. In addition to raising the top end of the capital gains rate, he's also proposed nixing stepped up basis on inherited assets. That means if a family member dies and leaves you some property, you may not be able to afford the taxes on it. However, KTRH moneyman Pat Shinn with Heritage Asset Advisors says the president has wavered on the issue.
“When he threw this thing out on step up, and everybody went ‘Whoa, Whoa!’ He immediately said, ‘Well, wait a minute. The first one million dollars are going to be exempt.’ Then, people said ‘is that for an individual or for a couple?’ Then he came back and refined it again,” Shinn said.
While Biden has promised only to tax the rich, financial experts say it's the middle class who would also be hit hard.
“I don’t know if any of this is really going to fly, and if it does, I think it’s only going to be while Democrats are in power,” Shinn explained. “When Republicans come back, they’ll do that same thing. They’ll use budget reconciliation to repeal it.”