alt Hacker NewsThat classic argument for step up is that a farmer’s son inheriting the farm suddenly owes a lot of taxes which he can’t pay without selling the farm.
Is this a real problem? And how do we fix that?
Replies
jermaustin1 • yesterday at 10:22 PM
You fix it by sidestepping it. Don't do it, even though it is the simplest/easiest to implement, and instead create 5 other laws that surround it and accomplish the same goal. Loop the hole back a them.
It is a real problem but its presented in a misleading way.
If you inherit a farm worth 1m and you have to pay estate taxes on that of 100k. You do not have to sell the farm, you can instead take out a mortgage to cover that 100k.
When we frame it that we its still very fair to the person inheriting the farm because who wouldnt want a $1m farm for 100k.