Van Hollen Applauds Biden Use of Stepped-Up Basis, IRS Enforcement to Pay for Investments in the Prosperity of Everyday Americans

Today, U.S. Senator Chris Van Hollen applauded President Joe Biden’s inclusion of measures to close the stepped-up basis loophole and increase resources for Internal Revenue Service (IRS) enforcement in order to fund the American Jobs Plan and American Families Plan. The Senator also announced his intent to Chair his first Financial Services and General Government (FSGG) Appropriations Subcommittee hearing on IRS enforcement.

“President Biden’s American Families Plan and American Jobs Plan will provide historic investments in the future of our nation and the success of our workforce, our families, and our economy. The President’s plans will build more prosperity and opportunity for all Americans– and are paid for through common-sense measures,” said Senator Van Hollen.

“Providing the IRS the necessary funds to go after those cheating their fellow Americans will not only ensure that wealthy individuals and big corporations are paying what they owe – it will also bring in vital funds to invest in these crucial policies that support everyday Americans. That’s why I’m calling my first hearing as Chair of the FSGG Subcommittee to delve into this critical issue, and why I’m glad to see the President’s intent to increase resources to the IRS within the American Jobs and Families plans,” Senator Van Hollen added regarding the IRS provisions.

“The stepped-up basis loophole is one of the biggest tax breaks on the books, providing an unfair advantage to wealthy heirs every year. Closing this loophole will stop subsidizing large intergenerational transfers of unearned income of the very wealthy and, instead, allow us to invest this huge amount of untapped revenue to lift up all Americans. I’ve been pleased to work with the Administration on this issue, and I’m glad to see their proposal closely mirrors our STEP Act. I’ll continue working alongside the White House and in Congress to get this done,”  Senator Van Hollen commented on the stepped-up basis provisions. Last month, Senator Van Hollen released a discussion draft of his Sensible Taxation and Equity Promotion (STEP) Act, legislation to eliminate this unfair tax break for the wealthy.