Democrats may scuttle tactics used by the rich to pass wealth to heirs with little to no tax, part of a broader plan to raise money for an expansion of the U.S. safety net.
Specifically, the party is considering disallowing some complex trust-planning techniques used by wealthy Americans to avoid estate tax, according to a discussion list of potential tax reforms obtained by CNBC.
Congressional Democrats may also ask the Treasury Department to update regulations to “prevent the abuse of non-economic valuation discounts,” according to the list. This concept applies, for example, to entrepreneurs who give a minority interest in their business to their kids at a discounted rate.
