The Obama administration has recently released proposals that would increase taxes on certain wealthy heirs and individuals in several different ways. The two key areas that these proposals focus on are retirement income and capital gains. “In his 2017 budget proposal, the Obama Administration has proposed a couple of limits on the size and distributions from tax-deferred retirement plans and accounts.” There are also proposals to limit the amount of capital gains that an heir can inherit tax-free, and would impact families and individuals who are above the exemption levels. Many of these proposals remain hypothetical because it is not clear if Congress will even agree to pass them. Congress has rejected similar proposals in the past and will probably reject or modify these new proposals as well.
See Mark P. Cussen, Obama’s Proposal Aims to Cut Tax Incentives for the Wealthy, Investopedia, February 23, 2016.
