Today, March 31st, 2022, Rep. Mariannette Miller-Meeks (IA-02) joined a bipartisan group of over 70 Members of Congress, led by Reps. Tracey Mann (KS-01), Jason Smith (MO-08), and Bob Latta (OH-05), to introduce a resolution recognizing the important role of the stepped-up basis in preserving family-owned farms and ranches.
“Farmers have faced many challenges in recent years. The pandemic and unpredictable weather conditions, ranging from last year’s derecho to the current droughts, have created uncertainty in both planting and harvesting,” said Miller-Meeks. “Stepped-up basis is incredibly important to farmers across Iowa and removing it would disproportionally hurt them. We need to keep fighting to make the lives of our farmers easier, as we do for all Americans.”
“We continue to see damaging policies in the Biden Administration's tax plan, including an effort threatening with the stepped-up basis,” said Mann. “Removing this provision would hurt generational Kansas farmers and ranchers and weaken their ability to keep assets in the family. The day-to-day trials of operating a successful farm, ranch, or small business are challenging enough without worrying about paying devastatingly large capital gains taxes. We must preserve the stepped-up basis and protect agriculturists now and in the future.”
“From his first day in office, President Biden has engaged in a nationwide assault on American agriculture,” said Smith. “Repealing stepped-up basis, as President Biden has called for, would have a devastating impact on America's working families, farms, and small businesses, costing 800,000 jobs and reducing our nation’s GDP by $100 billion in the first ten years alone. The President’s own Department of Agriculture has found this policy to harm all farms no matter their size – including 66 percent of mid-sized farms across the country. Earlier this week, President Biden continued his assault on American agriculture by renewing calls to eliminate the stepped-up basis in his FY23 budget. This legislation we are introducing today will send a clear message that Congress firmly stands with family-owned farms and small businesses.”
“Rural Americans are still reeling from the economic blows of the COVID-19 pandemic, and the last thing they need to be worrying about is the elimination of the estate tax’s stepped-up basis provision,” said Latta. “The stepped-up basis provision is crucial to small family-owned farms in Northwest and West Central Ohio as it allows the generational transfer of their operations. I am proud to lead this effort in the House with Rep. Mann and Rep. Smith because it puts American farmers, ranchers, and small businesses first so that they can ensure their operations can thrive for decades to come.”
Background:
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.
A long-standing provision in the tax code, the stepped-up basis protects heirs from paying capital gains taxes on inherited assets such as land, equipment, or buildings.
The resolution is supported by the National Cattlemen’s Beef Association, Kansas Farm Bureau, American Farm Bureau Federation, Kansas Corn Growers Association, National Corn Growers Association, American Soybean Association, USA Rice, National Grange, and National Council of Farmer Cooperatives.
Original source can be found here
