On Tuesday, Rep. Randy Feenstra (IA-04) sent a letter to President Biden urging him to abandon his plan to cap like-kind exchanges. 87 of Feenstra’s colleagues signed his letter – including Iowa Reps. Ashley Hinson (IA-01) and Mariannette Miller-Meeks (IA-02) -- which states that limiting like-kind exchanges would result in a higher tax burden for landowners -- including farmers, small business owners, and small investors who rely on this policy to drive economic growth in rural communities. The proposal is included in the administration’s Fiscal Year 2022 budget as well as the American Families Plan.
“We urge you and your administration not to damage the livelihood of farmers everywhere by repealing or changing like-kind exchanges,” the members wrote. “For the agricultural community, a cap on like-kind exchanges would limit farmers’ ability to improve their operations through combining acreage, purchasing more productive land, and mitigating environmental impacts. Further, capping like-kind exchanges could make it more difficult to restructure businesses so that young or beginning farmers can join operations.”
The members also highlight that limiting like-kind exchanges would not only have a negative impact on individual farmers, but also on the ag industry and the national economy as a whole.
“It is critical that farmers and small businesses have the freedom to improve their operations in whatever way they see fit,” the members continued. “This proposed change to the tax code would limit the economic mobility and viability of businesses across the nation. Now is not the time to stunt growth, but to encourage it.”
The letter is supported by the American Farm Bureau Federation and the Real Estate Roundtable, which includes 19 national real estate associations.
Original source can be found here
