Posted on 08/27/2021 12:59:45 PM PDT by gattaca
A recent study by Iowa State University showed that the administration’s American Families Plan if passed into law, would have a significant negative effect on Iowa’s family farms. In order to pay for new spending in the American Families Plan, the Biden administration has proposed, amongst other tax hikes, taxing accrued capital gains at death. AMAC Action and a number of small business organizations have been pushing back strongly on the proposal. This new Iowa State University study confirms that this issue should be front and center for small businesses and family farms.
Kristine Tidgren, director of Iowa State’s Center for Agricultural Law and Taxation said “because of the proposed increase in rates, we estimate that, on average, a full-time farmer owning 358 acres of farmland would see tax liability from a lifetime sale increase from $475,248 to $860,572, an 81% increase, or from 14.5% to 26% of fair market value.” That’s right, even a modestly sized farm would see a huge negative effect from the Biden tax plan. Co-author Wendog Zhang said “among full-time farmers with any ownership interest in a whole farm of 200 acres or more, we estimate that 62% of owners and 79% of acres would be impacted by the AFP tax at death or gift, even with a $1 million exclusion. That number jumps to 99% of owners and 98.2% of acres when the whole farm size reaches 500 acres or more.” At a time when many family farms are struggling to stay afloat, does a tax increase of this magnitude really sound like a prudent move?
At AMAC Action, we are strongly opposing all of the economically destructive Biden tax hikes. In the American Families Plan and American Jobs plan alone, there are over 15 proposed tax hikes called for in order to fund a wish list of new social spending programs. AMAC Action President Bob Carlstrom said: “This study gives our argument even more force as we push at this important time against tax hikes of all kinds on small businesses. Congressional Democrats are gearing up to put their new $3.5 trillion budget to work by enacting the accompanying spending and tax increases but our team is working twice as hard to help fight back against these destructive tax hikes.”
This study comes on the heels of new opposition from moderate Democrats, to taxing capital gains at death. So far, every Republican Senator, a small group of Democratic Senators, and even a group of rural state House Democrats are on the record with concerns about the new “double death tax” proposal. AMAC Action applauds the work by the Center for Agricultural and Rural Development at Iowa State University which comes at a critical time, as Congress shifts into overdrive this fall debating Biden’s tax proposals. Please continue to stay tuned into AMAC Action for more important updates on Congress. You can read the Iowa State University study here.
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Chinese agents and Bill Gates waiting in the wings to buy up farms at foreclosure.
That’s a feature, not a bug.
Inheriting the family farm or any family business would force the sale of the assets to pay the taxes.
Insane.
Perhaps the shortfall in food can be remedied with a program for 1am rooftop farming right after midnight bouncyball
End the ethanol mandates.
American Families Plan, more like American Feudalism Plan.
Sorry about the I am in above comment. Hate this keypad
not to worry- He’ll give special stimulus checks to black farmers affected by the taxes only
every-time the Uber wealthy in this country feel threatened that they may have to pay taxes on their inherited wealth that very often was never taxed in the first place, they trot out the same sorry stories about ‘family farms’...don’t buy it.
The mega-wealthy just want to pass on all of the untaxed gains to their heirs, without every paying a single penny of tax on it.
Depending on where you live, you can.
A bit of humor - here in Indiana the local co-op sell it.
Can't inflict a Ukrainian style genocide unless you gain control of the food production. Good job xiden voters!
No. It’s not insane. The leftists know exactly what they are doing....
and why.
The “death tax” is already wrong; that money has already been taxed. And it is especially onerous on farms and family businesses.
America hating at its best.
F U JOE!
This is how it worked. All the farmers friends would show up at the auction. Any strangers would be ushered to a barn where they were shown a hang man's noose dangling from the the hay loft.
Anyone not in the association who bid that day might get to try on the necktie. Or, they could leave now and avoid trouble.
Once the auction begin, association members would redeem the farmer's good for pennies on the dollar and the debt was duly discharged at a loss.
The farmer would earn everything back over the next few weeks by renting himself out as a farmhand to the association. Such duties naturally included organizing other farm auctions.
Keep voting Democrat you idiots.
Making way for corporate farming........./s
“The need for fact-based reporting that offers real solutions and stops the spread of misinformation has never been greater. “
Pretty bold at the end of an article that misstates a core fact - the proposal is for stepped-up basis that applies the tax at sale by the heir, not at death as the article states.
Between Joni Ernst & Iowa’s Never Trump governor, you think they’d have seen this coming?
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