[yccs27]

Isn‘t this a false dichotomy? Removing the cost basis step-up doesn‘t automatically mean any taxes are due on the inheitance - you could just keep the low cost basis and pay the tax once you actually realize your gains.

[lokar]

Exactly, today people get both: they inherit the assets with a stepped up basis, and also don’t pay tax

[tqi]

Don't you need money to pay the estate tax?

[yccs27]

Oh, good point. For that, you could allow people to pay off estate taxes over multiple years, if the tax is higher than the available liquid assets.