This is obviously a very important correction if it is correct.
That said, I think you may be correcting only the simplified strawman version at the top of the post, while the "actual" version offered at the bottom corrects for this by substituting borrowed cash for the actual asset. That is, I think the version at the top (1A,2A,2C) is intentionally flawed, and represents the popular misconception, while the version at the bottom (1B,2B,3B) corrects for this.
The author might not have chosen a clear format for his argument, but I don't think this is an actual error he is making. I think he addresses this directly in the bottom half of the post. But if you read through the whole thing and still feel he's wrong, I'd certainly like to hear more!
> Rather, it will use the original cost basis, pay tax on gains up to the adjusted cost basis, and the inheritors will use the new cost basis should they sell in the future.
This is just incorrect, at least in the US. The estate does not have to pay capital gains tax for assets passing through to the inheritors.
It's a great policy proposal though - this is one fix for the problem!
