Farmers remain worried about potential tax changes
May 4, 2021 By Mark Dorenkamp Filed Under: Iowa, Minnesota, News
Some farmers remain concerned about President Biden’s tax proposals despite assurances to protect family farms and small businesses.
Eastern Iowa corn and soybean grower Jeff Pape tells Brownfield he’s been following discussions on the estate tax and capital gains.
“My father is in his 80’s and we’re getting close to that transition point where that ground will be passed on to me. I have my home farm that I bought set up in a trust and everything’s lined up right for the kids, but I have a real concern that this new policy stuff could affect all that drastically.”
President Biden’s American Families Plan calls for the elimination of stepped-up basis, which allows land and other investments to pass from one generation to the next without capital gains taxation at the time of death. However, the proposal would exclude family-owned farms and businesses from capital gains if heirs continue to run the business.
Southwest Minnesota farmer Bob Worth says that would help a lot.
“If it comes to be. But until the law gets written and it is in law, we won’t know.”
Biden’s American Families Plan will likely face an uphill battle in Congress with expectations of no support from Republicans and the possibility of pushback from moderate Democrats.
Jeff Pape interview:
Bob Worth interview:
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