Playing Chess With the FedsPlaying Chess With the Feds

The year 2021 presented a dizzying array of possible alterations to federal tax laws. It began with a flurry of legislative activity compressed within a 4-day period at the end of March. Sen. Bernie Sanders (I-Vt.) introduced the “For the 99.5% Act,”¹ followed shortly thereafter by Rep. Brad Pascrell’s (D-N.J.) H.R. 2286² and Sen. Chris Van Hollen’s (D-Md.) “ STEP Act.”³ On April 28, President Joe Biden published (in the form of a “Fact Sheet”) his “American Families Plan.” Then, on May 28, the Treasury Department issued its Green Book,⁴ traditionally an annual compilation of Treasury’s favored proposed tax law revisions.⁵ Taken together, these Spring 2021 proposals sought, among other things, to reduce the estate and gift tax basic excl...