Bloomberg News is reporting that the President’s individual tax proposals will exclude changes in the estate tax. The article begins as follows:
President Joe Biden and his economic team are planning to forgo an expansion of the estate tax in the administration’s coming individual tax-hike proposals, according to people briefed on the plan.
Biden during the 2020 campaign pledged to increase the estate tax, along with raising rates on capital gains and corporate income, as part of an effort to force companies and the wealthy to pay a greater share of federal revenue. But the estate-tax boost won’t be part of the funding measures in the “American Families Plan” the president will unveil Wednesday, the people said, asking not to be named as the plan isn’t yet public.
Included in the plan is a near doubling in the capital-gains rate for the wealthy, Bloomberg has reported. The White House decided that that move was dramatic enough that the estate-tax hike could be excluded, according to people familiar with the discussions. Aides also did not want to include policy items unless they knew they had the backing of congressional Democrats, those people said.
The White House press office did not immediately respond to a request for comment.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.