Democrats face internal disagreement over Biden plan to tax large inheritances

President Joe Biden faces opposition in his own party to his proposal to roll back a key tax provision that limits the taxation of assets passed on at death.

The White House has pitched eliminating the step-up in basis at death for capital gains above $1 million per person or $2.5 million per couple. The step-up in basis allows inherited assets to be taxed at the appreciated value of when they were inherited as opposed to the basis value of when they were first bought. It can permit the appreciation of an asset over the course of a decedent’s life to go untaxed, although the estate tax may still apply.