“We did not support a wealth tax,” Yellen said. “We came up with a different approach. But our approach would result in higher taxation of capital gains for high income earners and lead to a hike in the base, which is sort of a way of avoiding the taxation of capital gains. values ​​by holding [assets] until death.”

Several Republicans have voiced opposition to Biden’s proposal to eliminate the beefed-up base on assets above $ 1 million, saying it was not doing enough to protect family farms and small businesses, even with a proposal allowing heirs to defer tax as long as they continue to own and operate the business.

“Your recommended exemption will not help most operating farms, and treasury privileges would only prolong the pain,” said Representative Adrian Smith, R-Neb., Said.

International tax issues

Democrats have mostly expressed support for Biden’s tax proposals, but Virgin Islands delegation Stacey Plaskett was concerned about how the administration’s international tax changes could compound a problem created by the Republican tax law of 2017. for US territories.

The rules of the “Global Low Tax Intangible Income” Act, or GILTI, for the taxation of foreign profits, treat companies headquartered in US territories such as the Virgin Islands as foreign companies.

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