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20×102mm Vulcan
Farmers Cry Foul over Biden’s Death Tax Proposal
President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.
In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.
Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.
The tax change is targeted at wealthy heirs receiving their parents’ fortunes. Generational farmers, though, say the repeal of this provision will leave them with a hefty tax when their parents pass away and hand down the family farm.
“When it comes to passing down a family farm to a niece or a nephew, the tax liability can result in selling the whole farm or significant pieces of the farm off simply to pay the tax bill,” said Chris Hagenow, vice president of Iowans for Tax Relief. “There is no question that an inheritance tax is a significant burden on families’ farms and their continuity.”
“Democrats’ proposal to repeal stepped-up basis encapsulates everything wrong with their entire tax agenda,” U.S. Rep. Adrian Smith, R-Neb., said. “They have proposed doubling the capital gains rate to nearly 40% in the name of so-called ‘fairness,’ rather than prioritizing economic growth or even revenue.”
Biden has defended his plan as a way to raise revenue needed for infrastructure and other projects.
tennesseestar.com
President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.
In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.
Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.
The tax change is targeted at wealthy heirs receiving their parents’ fortunes. Generational farmers, though, say the repeal of this provision will leave them with a hefty tax when their parents pass away and hand down the family farm.
“When it comes to passing down a family farm to a niece or a nephew, the tax liability can result in selling the whole farm or significant pieces of the farm off simply to pay the tax bill,” said Chris Hagenow, vice president of Iowans for Tax Relief. “There is no question that an inheritance tax is a significant burden on families’ farms and their continuity.”
“Democrats’ proposal to repeal stepped-up basis encapsulates everything wrong with their entire tax agenda,” U.S. Rep. Adrian Smith, R-Neb., said. “They have proposed doubling the capital gains rate to nearly 40% in the name of so-called ‘fairness,’ rather than prioritizing economic growth or even revenue.”
Biden has defended his plan as a way to raise revenue needed for infrastructure and other projects.
10 Killed in Santa Fe High School Shooting in Texas - Tennessee Star
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tennesseestar.com
