An Expensive Surprise for Rich Heirs Lurks Inside the Democrats' Tax Plan
The latest plan released by House Democrats scales back many of President Biden’s proposals to hike taxes on corporations and rich investors, as moderates and progressives tussle over how far to go to address inequality. But they included an element the White House left out.
The package by the Ways and Means Committee calls for a revamp of the U.S. estate-and-gift tax, a levy on the country’s largest fortunes which has been greatly weakened over decades. If House Democrats have their way, rich Americans will soon be scrambling for new and probably more expensive ways to pass wealth onto heirs.
The 881-page legislative proposal cracks down on a number of strategies that have made the tax easy to avoid if you hire the right advisers. That could upend how the top 0.1% manages their fortunes and whether they can move millions, sometimes billions, of dollars’ worth of assets outside their estates tax-free.
“That’s a huge sea change in our world,” said Brad Dillon, a senior wealth strategist at UBS Group AG in New York. “It eliminates a very large majority of transactions that we would typically advise clients to do.”
Read more: https://www.bloomberg.com/news/articles/2021-09-14/democrats-target-grantor-trusts-the-rich-use-to-pass-on-fortune-tax-free
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