Proposed Basis Rule

An Aug. 29 letter regarding the GOP bill to repeal the estate tax contained a major inaccuracy. It states that the proposal eliminates the stepped-up basis rules and then goes on to give an example of an heir who would now have to pay a tax on a small estate.

The bill provides for a step up in the basis for transfers to any beneficiary in the amount of $1.3 million, and in addition there is an additional $3 million subject to stepping up for transfers to one’s spouse. Both of these amounts would be adjusted annually for inflation. Quite simply, no marginally wealthy person would be caught in the trap that the writer perceives.

The estate tax is an unfair tax that metes out a punishment to those who have worked to accumulate money and property intended to assist family members in their future pursuits. This accumulation often comes at the expense of currently enjoying the fruits of one’s labor and, in fact, doing without.

IRVING CODRON

Los Angeles