In this file:
· House Ag Chair Opposes Biden Tax Proposals
· Shield Farmers from Higher Taxes for Biden Projects, says House Ag Chair
· Producers Should Look At Operating Plan When Dealing With Proposed Budget
House Ag Chair Opposes Biden Tax Proposals
By NAFB News Service
via Hoosier Ag Today - Jun 3, 2021
House Ag Committee Chair David Scott (D-GA) sent a letter to President Biden regarding his American Jobs Plan and American Family Plan. While he supports the historic nature of the plans, he’s unhappy with some of Biden’s tax proposals to help pay for the plans.
Scott says the tax plan will likely hurt farmers even though the tax liability would be put off as long as a farm stays within the same family.
“In particular, the stepped-up basis is a critical tool enabling family farming operations to continue from generation to generation,” Scott says in the letter. “The potential for capital gains to be imposed on heirs at death of the landowner would impose a significant financial burden on these operations.”
As he understands the exemptions, they would delay the tax liability...
Shield Farmers from Higher Taxes for Biden Projects, says House Ag Chair
By Chuck Abbott, Successful Farming
Agriculture.com - 6/3/2021
The Biden administration could “impose a significant financial burden” on farm families with its proposal for stricter application of capital gains taxes, said House Agriculture chairman David Scott on Wednesday. Scott also said any increase in estate taxes “for those taking over farmland is untenable.”
With his letter to President Biden, Scott became one of the highest-ranking congressional critics of the president’s proposal to end the practice of assessing assets, including land, at their current value when they’re passed down to heirs rather than the increase since they were originally acquired. The White House has said it would include an exemption for heirs who keep the farm in operation.
“My understanding of the exemptions is that they would just delay the tax liability for those continuing the farming operation until time of sale, which could result in further consolidation of farmland ownership,” wrote Scott. “This would make it more difficult for young, beginning, and socially disadvantaged farmers to get into farming.”
Very few farm families are obliged to pay estate taxes. There is an $11 million per person exclusion from estate taxes at present; it drops to $5 million per person in 2026 but will be indexed for inflation...
Producers Should Look At Operating Plan When Dealing With Proposed Budget
Radio 570 WNAX (SD)
Jun 4, 2021
President Joe Biden has released his proposed 2022 budget which includes $6 trillion in spending as well as controversial tax provisions. Included is long term capital gains and qualified dividend income being subject to a nearly 40 percent tax ret on net capital gains over $1 million of taxable income. SDSU Extension Risk Business Management Specialist and Economist Matt Diersen says producers need to be aware of this proposal and look at their five-year operating plan.
He says those proposed tax changes will likely have some impact on those adding to or downsizing their operation or selling off part of it.
Diersen says producers also need to figure out what the long term ramifications are to their ag operations should the President’s budget provisions get approved by Congress...
more, including audio [1:13 min.]