Congress is considering a new tax based on the STEP Act that would make it harder for middle-class Americans to pass on what they build to their kids.
The STEP Act would dramatically change the way capital gains are assessed and taxed on what someone owns at the time of their death – including family farms, homes, and small businesses. Eliminating the so-called stepped-up basis and triggering an immediate new tax upon death would unravel a system that has allowed generations of Americans to pass down what they have built to their families. It’s a double tax that will devastate middle-class families.
“When you look at what has made America an economic powerhouse, it's been a combination of entrepreneurship— the willingness to take a risk on yourself and your business, and the access to capital to make it happen. These principles have been focal points of the American Dream for generations, and taxing decades of ingenuity and hard work will serve as a detriment to economic growth and prosperity.”
The STEP Act would tax the capital gains of assets from the time they were purchased immediately upon inheritance, creating a potentially massive tax bill for families that just lost a loved one.
The rich can hire accountants to find ways out of such taxes, and indeed Congress is already considering loopholes that would benefit the wealthiest Americans. Middle-class families and small businesses are the ones who will face massive new tax bills.
Nearly 6-in-10 Americans firmly oppose this legislation, including a near majority (47%) of Democrats. Voters do not want a tax hike targeted at the middle class and will hold Members of Congress who vote for it accountable.