By John A. Meier, II
Imbedded within all the news about Covid and other domestic issues can be found news about new tax proposals. However, much of that news is very confusing. If you search "Biden Tax Hikes" on the internet, your search will return over 31 million hits. With this much information, there is little chance that the average person can understand what is truly being proposed. However, there appears to be some proposals that are receiving a lot of attention. The most significant proposals that affect many of our clients are the increase of the maximum income tax rates, including the capital gains rate, and the elimination of the step-up in basis of inherited assets. Changing the rates is simple; just change the rate(s). Tax rates have been increased and decreased many times over the years and will change yet again. Congress certainly seems to know how to change tax rates! Making changes with long-standing cost basis concepts will be more difficult.