Van Hollen Applauds Reports of Biden’s Intent to Tackle Stepped-Up Basis Loophole

Today, U.S. Senator Chris Van Hollen (D-Md.) released the following statement regarding reports that President Biden intends to propose closing the stepped-up basis loophole – which allows heirs to inherit huge fortunes on which the original owner never paid income taxes – in order to fund priorities that will bring greater prosperity to all Americans. 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.

“To build an economy that works for all Americans, we must tackle the inequality in our tax system and invest in the prosperity of everyday Americans. The stepped-up basis loophole allows the richest of the rich to get by without paying income taxes on large inheritances. It’s time to stop subsidizing huge amounts of inherited wealth and start investing in the success of our workers, children, and families. I’m glad to see President Biden’s intent to eliminate this loophole, and I look forward to working in Congress to get it done,” said Senator Van Hollen.