Biden Inheritance-Tax Plan Poised to Be Scaled Back in Congress

A key Biden administration proposal to collect more tax revenue from wealthy individuals appears poised to be watered down by lawmakers, and may even be removed entirely from the Democrats’ tax and social spending agenda, according to people familiar with the matter.

Democrats in the House and Senate are moving toward scaling back or potentially dropping President Joe Biden’s proposal to significantly limit the tax exemption known as step-up-in-basis for assets passed on at death to heirs, the people said on condition of anonymity because the talks are private.

Biden had proposed raising the capital gains tax rate for ...