How the Estate Tax Phaseout Worsens Wealth Inequality

In June 2026, the estate tax exemption sits at $13.61 million per individual, meaning fewer than 0.2% of estates pay a dime in federal estate tax. Lucas and Luna explore how this phaseout—set to revert to roughly half that level in 2026—actually perpetuates dynastic wealth. They break down the numbers: in 2025, only about 1,900 estates owed any tax, down from over 50,000 in 2001. The real story isn't just the tax-free transfer; it's how the step-up in basis rule lets heirs erase capital gains taxes entirely, creating a permanent loophole for the ultra-wealthy. They cite data from the Congressional Budget Office and the Joint Committee on Taxation, and contrast US policy with countries like the UK and Japan that have much lower exemptions. The episode argues that the estate tax phaseout, far from protecting family farms, primarily benefits the top 0.1% and accelerates wealth concentration across generations. #EstateTax #WealthInequality #Inheritance #StepUpInBasis #TaxPolicy #DynasticWealth #CongressionalBudgetOffice #JointCommitteeOnTaxation #EconomicJustice #WealthGap #FexingoBusiness #BusinessPodcast #Economics #TaxLoopholes #GenerationWealth #EstatePlanning #Policy2026 #IncomeDistribution Keep every episode free: buymeacoffee.com/fexingo