There are no legislative proposals to increase the capital gain tax, change the step up basis, or anything else. To date it’s all some combination of electoral rhetoric and speculation & hype.
This from March 29, 2021:
https://www.insidernj.com/press-rel...will eliminate that loophole once and for all.
"Today, U.S. Senators Cory Booker (D-NJ), Chris Van Hollen (D-MD), Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), and Elizabeth Warren (D-MA), announced a new proposal to close the stepped-up basis income tax loophole"
This currently on Senator Chris Van Hollen (Maryland) website:
https://www.vanhollen.senate.gov/imo/media/doc/One pager - STEP Act.pdf
"Problem: Tax-free stepped-up basis
Working Americans pay taxes every year on their income. But the income tax is more optional for the wealthiest
families, whose income often comes from their wealth rather than their work. Income from wealth
accumulation is supposed to be taxed as capital gains when someone sells an asset for more than what they
paid for it. However, when someone dies with assets that increased in value during their lifetime, income taxes
are never collected on these capital gains – even if their heirs sell the asset the next day.
This is called the “stepped-up basis” loophole, because it allows heirs to step up their cost basis in inherited
property to match the value on the date of the previous owner’s death, meaning that only capital gains above
that point could ever be subject to income taxes...
Solution: The STEP Act
This legislation would close the stepped-up basis loophole by taxing unrealized capital gains when heirs inherit
huge fortunes on which the original owner never paid income taxes. The tiny share of estates that owe the
estate tax will not be subject to double taxation, because the income taxes paid under this bill will be deductible
for estate tax purposes."