Democrats, Republicans Lay Groundwork for 2025 Tax Priorities

A Senate hearing previewing the 2025 tax debate underscored Democrats’ goals to increase taxes on the rich, while Republicans doubled down on support for a key expiring business tax deduction in the 2017 GOP tax law.

Democrats renewed their dividing line for raising taxes, vowing that their proposals would leave people with an income of $400,000 or less unscathed. Some suggestions included removing stepped-up basis, in which the basis of appreciated assets are adjusted to their fair market value when the original owner dies, and increasing the capital gains tax rate.

“That kind of trickery isn’t available to nurses and ...