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Senators Mitt Romney (R-UT) and Michael Bennet (D-CO) have recently proposed a bi-partisan compromise to end the continuing negotiations on various tax and business changes being proposed in Congress. Their compromise includes expanding and reforming the child tax credits, making some technical corrections to the 2017 tax law, and permanently repealing the medical devise excise tax.
However, most new laws proposed in Congress must be revenue-neutral. Therefore, to pay for these and other changes, Romney and Bennet have proposed passing a handful of other bills, including one that would replace stepped-up basis with a carryover basis, with a $1.6 million exemption for individuals and an additional $3.7 million exemption for spousal inheritance. (Click here to learn more.)
Obviously, if this proposal becomes law, there will be a serious impact on estate plans. Stay tuned!