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Biden allegedly vowed that families that were making less than 400K a year would not see tax hikes, according to The Western Journal.
Biden has introduced the American Families Plan.
“The President’s plan will close this [loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heir], ending the practice of ‘stepping-up’ the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed.”
From The Western Journal:
‘Death Tax’ Greatly Expanded
Currently, the estate tax exemption stands at $11.7 million, meaning that when an owner of an estate passes away, the heirs are only taxed on the amount exceeding $11.7 million, or $23.4 million for couples. So, if an unmarried son inherits a $20 million estate, he would pay taxes on $8.3 million.Biden’s drastic plan cuts the $11.7 million exemption all the way down to $1 million.
The White House reported that “The President’s plan will close this [loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heir], ending the practice of ‘stepping-up’ the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed.”
Essentially, for homes worth more than $1 million, unmarried heirs would be on the hook for 39.6 percent federal tax — regardless of their annual income.
Million Dollar Homes and the False Narrative
In times past, a million-dollar home would have been considered a mansion, and so it would make sense that the uber wealthy would pay an appropriate tax.However, with the red-hot housing market that has seen median home prices surge 13.6 percent over last year to hit $380,000, the number of homes valued above $1 million has soared.