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Farm Bureau concerned about proposed capital gains rate increase

Farm Bureau has concerns about President Obama’s capital gains rate increase in his fiscal year 2017 budget proposal.

AFBF director of public policy Dale Moore says this tax continues to be burdensome for many farm families.

“Whether they’re passing on their operations to the next generation or just something going on in the way that they are managing their enterprises.”

A capital gain is when the sale price of an asset is higher than the initial purchase price, and the federal tax takes a percentage of all realized gains.

The President’s proposed budget calls for raising the top tax rate on capital gains eight percent from the current 20 percent.

“Those are the kinds of things that don’t readily pop up when you’re writing about the ag news, but can have a profound effect on farm and ranch families all across the country.”

Moore says there are other proposed tax increases in the bill that could also be harmful to farmers and ranchers and Farm Bureau will be working with Congressional leadership to ensure the final budget is fair to agriculture.