Biden’s American Families Plan proposal is raising some concerns in agriculture. The plan, which the White House says will transform education, childcare and healthcare, is coming at a cost with proposed tax changes. In the proposal, the administration wants to change the way capital gains taxes are paid and even eliminate the step-up in basis for some.
Agriculture groups are raising concerns about what the changes could mean for farmers and ranchers, but the Biden administration continues to say the changes wouldn’t impact family farms.
Now, Chairman of the House Ag Committee, David Scott (D-GA), sent a letter to President Biden with similar concerns. Scott signaled his support for the proposed infrastructure plans but raised concerns are proposed tax changes including step-up in basis.
In the letter, Scott said the programs are admirable, but “I am very concerned that proposals to pay for these investments could partially come on the backs of our food, fiber and fuel producers. In particular, ‘step-up in basis’ is a critical tool enabling family farming operations to continue from generation to generation.”
He adds that the current exemptions only delay the tax liability and he’s worried will result in further consolidation of ownership.’”
