We are hearing more reactions about the Biden Administration’s American Families Plan, especially concerning the several provisions of the tax code meant to raise approximately $1.5 trillion in revenue over the next 10 years. This week, the National Cattlemen’s Beef Association (NCBA) noted they have long advocated for sound tax policy for rural America.
“Family-owned cattle operations, no matter the size, are the backbone and economic drivers of rural economies across the U.S. Preserving long-standing tax provisions such as stepped-up basis and like-kind exchanges is critical when considering the financial viability of farms and ranches, as well as the ability for the next generation of producers to carry on the family business and conserve the land that has been in their family for generations,” said Danielle Beck, NCBA Senior Executive Director of Government Affairs.
The American Families Plan would repeal the deferral of gain for real estate like-kind exchanges for gains greater than $500,000 and eliminate stepped-up basis for gains in excess of $1 million ($2.5 million per couple “when combined with existing real estate exemptions”) and tax said gains on any property not donated to charity. According to the plan, the reform will be designed “with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.”
“When considering how to offset the cost of a comprehensive infrastructure package, it is essential that Congress preserve sound tax policies for family-owned agricultural operations. We are committed to holding Members of Congress accountable for legislation that will not adversely impact the viability of farm and ranch businesses, or the next generation’s ability to continue to sustainably produce an abundant food supply,” Beck said.
NCBA says they stand ready to work on both sides of the aisle to ensure that Members of Congress understand the needs of cattle producers in regard to tax policy.