(Washington, DC) The National Lumber and Building Material Dealers Association (NLBMDA) opposes the proposal announced last night by President Barack Obama during the State of the Union address that would increase the top capital gains tax rate and increase the taxes paid on inherited capital.
As part of the proposal, the top tax rate on capital gains and dividends would increase from 24 percent to 28 percent. Prior to 2013, the top tax rate on capital gains and dividends was 15 percent.
In addition to raising the capital gains tax rate, it would eliminate the current “step-up” basis that reduces the capital gains tax on inherited assets. In what amounts to a second death tax, heirs would also have to pay tax on all capital gains which took place before death. The protections for small family-owned businesses are inadequate, and the step-up basis would remain only for assets given to a spouse or charity upon death…