REMI was entrusted, by the Committee to Unleash Prosperity (CTUP), to perform a national economic impact analysis of the three proposed changes to the STEP Act (Sensible Taxation and Equity Promotions): the repeal of the step-up basis at death, making death a tax realization event and increasing the tax liability of common trusts utilized for small businesses, families, and privately-owned enterprises.
REMI analysis accounted for the proposed changes under a top combined capital gains tax rate of 43.4%, adding the Administration’s proposed 38.6% top capital gains tax rate and the existing 3.8% net investment income tax (NIIT). The findings demonstrated effects on GDP, employment rate, private investment spending, R&D spending, and personal income, all of which demonstrated significant negative economic impacts. The study continues to deduce the drivers of these effects to several key factors.
