President Biden has proposed the elimination of the “step up in basis,” while keeping the 40% (or higher) estate tax on the full value of a family business owner’s assets.

That means that each person who inherits a business will pay taxes on the same appreciation over and over again, each time the business changes hands. And he wants to raise the capital gains tax rate to 39.6 %. (Basically the same as the estate rate).

Economic Impact from Repeal of Step-up in Basis

Family Enterprise USA advocates for American Family business. We help family businesses communicate their challenges and contributions to American economic freedom to Legislators. We represent all American family businesses; not just specific industries and provide research to enhance the opportunity for success. We help family businesses continue to establish their unique business legacy. Family Enterprise USA is a 501(c)(3) non-profit organization.. Family foundations can donate.