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New Tax Proposal Targets Wealthy's Untaxed Gains at Death

1/24/2025

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Summary

Story summary

The U.S. capital gains tax favors the wealthy, as it only taxes profits when assets are sold, leaving unrealized gains untouched until death. This loophole allows high-income households to avoid significant taxes. Proposals for a 23.8% tax on these unrealized gains at death could yield substantial revenue, potentially surpassing current estate tax collections.

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Story summary

The U.S. capital gains tax favors the wealthy, as it only taxes profits when assets are sold, leaving unrealized gains untouched until death. This loophole allows high-income households to avoid significant taxes. Proposals for a 23.8% tax on these unrealized gains at death could yield substantial revenue, potentially surpassing current estate tax collections.