Tracey Mann: “As Congress works to reauthorize the farm bill, I rise today to deliver the 17th installment of my farm bill impact…”

“As Congress works to reauthorize the farm bill, I rise today to deliver the 17th installment of my farm bill impact series, where I am highlighting various aspects of the legislation that deserve Congress' awareness and support. The farm bill won't ever be effective, though, if the stepped-up basis is eliminated and if producers get saddled with unjust capital gains taxes. Sadly, that is exactly what President Biden's budget proposal does. It works to eliminate the stepped-up basis and impose capital gains taxes on assets that have been held in family trust or ownership for over 90 years. This is the farm killer tax. Here is why the stepped-up basis is so important. Let's say you are a young person working on your family farm, and you are slowly taking on responsibility and risk. You work for your parents until the time comes for you to take over the land, equipment, and livestock. When that happens, the Federal Government should not jump in and impose taxes on the unrealized gains of these inherited assets. This principle is called the stepped-up basis and has a long precedent in the tax code with tons of bipartisan support. The President's budget, however, works to eliminate this, which would destroy family farms overnight. The day-to-day trials of operating a successful farm, ranch, or small business are challenging enough without worrying about paying devastating capital gains taxes, and now the Biden administration wants to impose new taxes on these people.…”