The Secret Tax Loophole Making the Rich Even Richer | Robert Reich

Former Secretary of Labor Robert Reich reveals how a little-known tax loophole called the stepped-up basis allows the super-rich to hoard their wealth for generations.

As it is now, the stepped-up basis loophole enables the super-rich to avoid paying more than $40 billion in taxes each year. It’s one of the chief means by which dynastic wealth has grown and been passed from generation to generation, enabling subsequent generations to live off that growing wealth and never pay a dime of taxes on it.

Unless the loophole is closed, we will soon have a large class of hugely rich people who have never worked a day in their lives. Over the next decades, rich baby boomers will pass on an estimated $58 trillion of wealth to their millennial children — the largest intergenerational transfer of wealth in history.

Close this loophole, and we prevent America from becoming an aristocracy. It should be a no-brainer.

#taxcheats #taxtherich #jeffbezos

[MyRapNameIsAlexbitsnpieces]

Prevent the U.S.A. from becoming an aristocracy??

I'm afraid that train left the station quite a while ago.

[oldcountryman]

The stepped up basis rule would be fine if we had brought back a real inheritance tax. And no, farms and “family” businesses should not be exempt from inheritance tax.

[triaxe-mmb]

Has this loophole always existed or was it created in the recent past?

[jessetorres]

I once saw this image that said that if someone lived for 80 years and earned an average of $5, 000.00 every day of their life, they still wouldn't be a billionaire, but rather have about $150, 000, 000.00. At the bottom of the image was a line that said that no one works to become a billionaire. So yeah, we should be taxing multi millionaire and billionaire individuals and corporations in this country more then we currently are! And if you want to argue that taxes shouldn't be raised on the wealthy and corporations, how can you defend them when they send their U.S. dollars to other countries so they can't be taxed and help fund domestic programs to help poor people here in the U.S.?

[angeldetierra]

► Thank you Bob. Let's close the stepped-up loophole!

[ScozzDimension]

What other loop holes are you skipping over. They usually close one and open ten more hidden deep in the multi hundred page bills.

[coleengoodell]

Interesting information. Ignorance is not bliss. Ignorance is dangerous and deadly.

[unionjoe]

Pass the Pro Act! Call your senator! Call the Democrat Senators of Arizona and let them know they need to stand with the working class and pass the Pro Act!

[SteveRomigsongwriter]

It’s amazing. Everything seems to work in favour of the Uber rich.

[alansmitheejr.]

Sometimes it feels like feudalism and serfdom have returned to show their ugly little heads.

[joevignoloru]

I'm guessing that calling the super rich guy "Jeff" was not just a random selection.

[kramer]

Who else thinks Robert needs to run for public office?

[CaptainSteen]

Why don't Dems explain these taxes to the American people in press conferences the way you do? They are so bad at messaging. Instead we are bombarded with GOP messaging calling all tax to the wealthy "Job killers" Just get out a damn white board and have someone give a simple explanation! This was 2 and half minutes and covered it perfectly.

[rparl]

Nice job on the illustrative cuts in your presentation.

[jessicamai]

I thought we already were? Didn’t Bernie give that argument?

[petdoctor]

Q: What do you call a multi-billionaire who pays his/her fair share in taxes?
A: A multi-billionaire

[thomasridley]

We are totally screwed.

The people: Hey rich people lets share the bounty !!!
Richer than god :
Over my dead body !
The people: You might want too rethink that position.

[stevenwelp]

Thank You, Thank You & Thank You Robert!

[phungphan]

So the top 1% of Americans pay 40% of the federal tax shares and top 10% of Americans pay 71% of the total federal taxes and we claim that they don't pay their fair share? I don't want to be taxed on crypto coins and stocks I haven't sold yet! This vid is wack!

[sammydillon]

Isn't it only an actual gain when the asset is sold? So you propose the government force the heirs to sell the asset so it can be taxed? Or not sell and have to come up with the funds to pay the tax on an asset that may or may not turn out to have a gain when it is eventually sold.
Would it not be more fair to simply not allow the step us basis and keep the basis at the original purchase price? Therefore if/when it is eventually sold, the tax will be paid on that gain?