Tax law changes

The long-term capital gains tax rate is 20% max and only requires the owner to hold the asset for one year before selling. For rich people this is one half the 40% federal income tax rate. For this reason, the rich limit their sales of appreciated assets until they die and then there is no tax. These are called unrealized gains and some suggest the law be changed so that the tax must be paid even if the asset is not sold. This would mean they could no longer escape the capital gains tax by holding the asset until they die. This would go a long way toward lowering the wealth gap. This would not be easy. To tax unrealized capital gains, Congress would need to pass new legislation drastically altering the tax code and likely amend the Constitution or win a favorable Supreme Court ruling. Currently, the U.S. taxes capital gains only when an asset is sold or traded