Alan Reynolds: Estate-tax spin

Alan Reynolds: Estate-tax spin: "Estate-tax spin
Alan Reynolds (archive)

August 18, 2005 | printer friendly version Print | email to a friend Recommend to a friend

Just after the 2001 tax bill was enacted, I noted that the estate tax would be repealed 'only for one year (2010). In that same year, assets would begin to be inherited at their purchase price rather than market value (carryover basis), so heirs would inherit old capital-gains tax liabilities. ... If carryover basis were maintained after 2010 ... then heirs could end up brutally taxed on both the value of inherited assets and old gains on those assets.'

A Wall Street Journal fact-checker called, thinking I surely must have made a mistake. But Congress made the mistake and has to fix it."