High-income earners would pay more taxes on investment profits and inherited assets.
This bill would change how investment profits (capital gains) and inherited assets are taxed. It would limit special lower tax rates on capital gains for individuals earning over $1 million a year. It would also treat assets transferred as gifts or at death as if they were sold, meaning capital gains taxes would apply at that time, with some exceptions for spouses and family farms or businesses.
Today, capital gains often have lower tax rates than regular income and are generally only taxed when an asset is sold. Inherited assets typically receive a "step-up in basis," meaning the capital gains tax on the asset's increase in value before death is avoided. After this bill, individuals with over $1 million in taxable income would pay regular income tax rates on investment profits and dividends above that amount. Capital gains taxes would also be due when appreciated assets are given as gifts or inherited, though there would be a $1 million exclusion and special rules for family farms or businesses and spouses.
HR 5336 · 119th Congress · September 11, 2025 · AI Summary by gemini-2.5-flash · 6/10
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15 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.