The most perverse tax code rule

Erwin Oropesa

Improving equity is one of the top priorities of President Biden, along with upgrading our infrastructure, increasing access to higher education, and a host of other worthy yet rather costly objectives. But a precondition to achieving these laudable goals is sufficient funding, which necessarily starts with the elimination of tax rules that tip these scales of financial justice in favor of the wealthy. Of the low hanging fruit in the tax code, one particularly ripe target is the stepped up basis rule.

This rule provides that the basis of every asset that a decedent taxpayer owned is deemed the same as its current fair market value. If a person purchased a stock for $100 a share and died when the share price was $1,000 a share, the latter dollar figure is the new tax basis of such share. Such determinations are critical. Upon the sale or trade of assets, basis

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Joe Biden and his $2 trillion tax plan would crush the economic recovery

Erwin Oropesa

My old boss Dick Armey, the Texas Republican and former House majority leader, would say half jokingly that “liberals love jobs but hate employers.” That axiom was never more on point than today, with President Biden and Democrats in Congress preparing to roll out their new $2 trillion tax plan. This fiscal behemoth comes at a time when we still have at least 8 million fewer Americans with the labor market versus one year ago.

The idea that the largest tax increase in at least three decades is going to create more jobs here at home is only accurate if every law of economics is suspended. Any sort of levies suck the demand and supply for services and products out of the economy. They are really the financial version of letting a patient bleed out in order to bring him back to life.

The tax plan, as being discussed, will

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Business Trusts expect relief on capital gains tax from listed shares

Erwin Oropesa


It is recommended that the capital gains covered under Section 112A should be charged to tax at the rate of 10% and not at MMR in the hands of business trust to bring parity in the provisions.


© Provided by The Financial Express
It is recommended that the capital gains covered under Section 112A should be charged to tax at the rate of 10% and not at MMR in the hands of business trust to bring parity in the provisions.

Union Budget 2021 Expectations: Business Trusts are Cash-Pooling Vehicles (CPVs) that aggregate the funds from investors to fund the large infrastructure or real estate projects. A business trust can be either registered as Real-Estate Investment Trust (‘REIT’) to invest in the real estate properties, malls, offices etc. or Infrastructure Investment Trust (InVIT) to invest in infrastructural projects such as bridges, roads etc.

A specific taxation mechanism for business trust was introduced by the Finance Act, 2014. A business trust (REIT or InVIT) is governed by Section 115UA, Section 10(23FC), Section 10(23FCA) and Section 10(23FD) of the Income-tax Act. A business trust is structured as a hybrid pass-through

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