evidence: Biden Proposal Would Eliminate Tax-Free Treatment for Much of Wealthiest Households’ Annual Income [...] Moreover, because of the "stepped-up basis" loophole, if these wealthy people never sell their assets that gain in value — in technical terms, they never realize capital gains from the assets’ appreciated value — the income tax that would be owed on those gains will simply be erased when their heirs inherit the assets. As discussed in greater detail below, the President’s budget separately proposes to end this major loophole for wealthy households. The budget would also end the special discounted rate that applies to capital gains. [...] The Biden budget would also end the stepped-up basis loophole for those with capital gains greater than $5 million for a single taxpayer ($10 million for couples). This proposal complements the minimum tax, which is only a partial prepayment of the full tax liability on unrealized gains. By applying the capital gains tax at death and then subtracting the prepayments already made, the proposal would ensure the full amount of tax is paid and no double taxation occurs.