Legislative Watch: Biden proposes $6 Trillion budget; USDA budget would increase broadband, research and nutrition funding.
House Agriculture chairman David Scott, D-Ga., is raising objections with the administration's proposal to eliminate stepped-up basis, saying it "cannot be borne by the next generation of farmers taking over the land."
Scott wrote in a letter to President Biden, "Any increase in inheritance tax for those taking over farm land is untenable and will further strain a farm economy that is just now beginning to recover from the strain of the pandemic.”
He continued: "In particular, 'step-up in basis' is a critical tool enabling family farming operations to continue from generation to generation. The potential for capital gains to be imposed on heirs at death of the landowner would impose a significant financial burden on these operations. Additionally, 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 in farmland ownership. This would make it more difficult for young, beginning, and socially disadvantaged farmers to get into farming."