NCBA Calls Biden Cap Gains Tax at Death, Devastating for Producers
NCBA’s Danielle Beck says the taxes proposed to pay for massive infrastructure and social spending “threaten the viability” of family farming and cattle operations—especially a new tax on capital gains at death that ends the ‘stepped-up basis'.
"“That proposal, in particular, would be devastating for our producers," said Beck. "Discontinuing this benefit is not only going to create massive tax liabilities for heirs, when they ultimately upgrade or transfer these assets, or sell the farm. It’s also going to have unintended consequences for some of the constituencies that this administration is really trying to cater to and prioritize, like underserved and new and beginning farmers and ranchers.”
She says the new tax's reach, with asset values more than tripling in the last 30-years, would be sweeping.
“That threshold of a million dollars, imposing a capital gains tax on any gain over a million, that’s going to encompass a lot of producers, even if they do qualify as, sort of a small, or very small, agricultural operation by USDA standards," said Beck.
USDA claims most farms would be exempt if they stay in the family. But Beck says more than one-third of the 900-million U.S. acres in production could change hands in the next two-decades--many sold for other uses. More taxes may only hasten that process.