Washington, DC – Congresswoman Liz Cheney (R-WY) issued the following statement after joining more than 70 of her colleagues in introducing a bipartisan resolution recognizing the important role of the stepped-up basis in preserving family-owned farms, ranches, and small businesses. A long-standing provision in the tax code, the stepped-up basis prevents heirs from paying capital gains taxes on inherited assets such as land, equipment, or buildings.
“The stepped-up basis is an important provision of our tax code that helps farmers, ranchers, and small businesses pass their assets on from generation to generation. Our agriculture industry and small businesses have suffered during this pandemic, and should not be saddled with more government overreach and higher capital gains taxes. I am proud to join my colleagues in supporting this commonsense resolution to protect family-owned farms, ranches, and small businesses in Wyoming and across the country.”
BACKGROUND:
The resolution is supported by the National Cattlemen’s Beef Association, American Farm Bureau Federation, National Corn Growers Association, American Soybean Association, USA Rice, National Grange, and National Council of Farmer Cooperatives.
According to the U.S. Department of Agriculture, 98% of farms are family-owned. If the stepped-up basis is eliminated, 66% of all mid-sized farms would see an increased tax liability.
The full text of the resolution can be found here.
Original source can be found here.
