Posted 6/30/2020 15:05 (#8345634 - in reply to #8345599) Subject: RE: I guess stepped up basis is considered a loophole
Central North Carolina
What do you want H3F central american socialist type land redistribution policies? Tax policy is supposed to be about efficiently raising monies to provide necessary government services. It not supposed to be about social policies, that is when stuff get complicated and counterproductive. Eliminate cap gains by lowering rates to a flat rate on all income and indexing to inflation long held assets.
A big benefit here in the southeast is the stepped up basis for timber. After the pines are cut by the family once, the cost basis becomes practically $0. Then the next generation get the stepped up basis and can sell for little profit/tax every 30 years or so. It sure helps preserve woodland prime for residential development. I could make a lot of money by developing my farm as i am surrounded by golf course communities and subdivisions. But the timber value is something that can keep the land in our family for generations with some reasonable return from time to time. I realize it is not completely fair, but it is one of the few tax benefits for small landholders here that work their whole life asking little from the government. No grain subsidies here.