WASHINGTON â A group of 13 House Democrats, led by Iowaâs Cindy Axne and Californiaâs Jim Costa, is pressing party leaders to exempt family farms from a tax increase President Joe Biden has proposed on inherited assets to help pay for new child care, education and other spending.
Under Bidenâs $1.8 trillion package of family-related assistance, heirs would no longer receive âstepped up basisâ for capital gains tax purposes, which resets the value of inherited property to the date of death. Instead theyâd be liable for the tax on the full appreciation in value from the time the original owner purchased the assets, in some cases many decades earlier.
AP
Iowa Rep. Cindy Axne is among 13 Democrats pressing party leaders to exempt family farms from a tax increase President Joe Biden has proposed on inherited assets.
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WASHINGTON A group of 13 House Democrats, led by Iowa’s Cindy Axne and California’s Jim Costa, is pressing party leaders to exempt family farms from a tax increase President Joe Biden has proposed on inherited assets to help pay for new child care, education and other spending.
Under Biden’s $1.8 trillion package of family-related assistance, heirs would no longer receive “stepped up basis” for capital gains tax purposes, which resets the value of inherited property to the date of death. Instead they’d be liable for the tax on the full appreciation in value from the time the original owner purchased the assets, in some cases many decades earlier.
DeLauro said Democrats have held talks with Republicans in crafting the legislation, adding that the supplemental spending bill would focus narrowly on fixing security flaws exposed by the Jan. 6 attacks. Supplementals can become Christmas trees, and that, we re not going to do, she said at an event hosted by the Brookings Institution. We are trying to avoid that like the plague.
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The timeline laid out by DeLauro is similar to the one House Majority Leader Steny Hoyer
Democrats are likely to huddle on the supplemental spending bill Monday before unveiling the legislation and sending it to the House Rules Committee for floor consideration.
The rural-area lawmakers aren’t the only group of Democrats who have been urging lawmakers to take into account issues of particular importance to their districts when crafting legislation based on Biden’s economic recovery plans; another group of lawmakers from high-tax states such as New York, New Jersey and California want legislation to include repeal of the cap on the state and local tax deduction.
Democratic leaders will likely need to take lawmakers’ geographic-related interests into account when they craft legislation. They will need the support of nearly every Democratic lawmaker, given that Republicans are expected to oppose bills based on Biden’s plans and Democrats have narrow majorities in Congress.