Wall Street Journal: Heirs, Estates and the Step-Up in Basis Rule

Following is an excerpt from a letter to the editor published in the Wall Street Journal by Steve Wamhoff, ITEP federal policy director.

Under current law, America’s wealthiest people can avoid paying taxes on a substantial share of their income. Most of what Elon Musk and Jeff Bezos make is appreciation on their assets, also called unrealized capital gains. They decide how much of this income to realize each year (by selling stock). Naturally, they realize little of it, and most of it goes untaxed. Read more