Representatives send letter to House leadership over proposed tax policy
May 6, 2021 By Kellan Heavican Filed Under: Ag economy, Ag Land, Ag Policy, Ag taxes, Agriculture, Congress, Economy, Minnesota, Nebraska, News
More than 130 U.S. Representatives have signed a letter opposing proposed tax policy changes outlined in the American Families Plan.
Nebraska Representative Adrian Smith says eliminating stepped-up basis and assessing capital gains taxes at death would disproportionately affect rural areas. “It is damaging when say a family operation to pay the death tax would be expected to sell off some of the assets,” Smith says. “In this day in age, you can’t just sell of part of the farm and expect to have a successful operation.”
Stepped-up basis is a tax provision that allows land and other investments to pass from one generation to the next without capital gains taxation at the time of death.
The reform does include protections for family-owned businesses and farms, and they will not have to pay taxes when the business is given to heirs who continue to operate the business.
Smith along with Minnesota Representative Michelle Fischbach co-authored the letter Wednesday to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy. The letter says the changes could harm U.S. farmers and ranchers.
Read the letter here.
Smith made his comments Thursday afternoon with Nebraska Farm Bureau during a news conference announcing a coalition to oppose new tax policy proposals.
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