No. of Recommendations: 1
Eliminate, or at least severely cripple the “step up” basis for inheritance.
Under this plan, the whole concept of "inheritance" or "step up" is moot. Anything you receive is taxable as income ... including whatever you receive from someone who recently died. And, yes, if you receive a business worth $10M, you have to come up with the $3M tax payment or sell the business to get it. Of course, with people dying all the time, this means that there will be excess businesses for sale all the time, so that $10M business may only be worth $6M at that time, so the tax will only be $1.8M instead of $3M. It would also likely mean that most businesses would be under new management every 30 years or so (assuming the owner died at 85 and gave it to their heir aged 55 on average).
