Stabenow, Boozman both concerned about farmers’ taxes, but …
Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., and Sen. John Boozman, R-Ark., the ranking member of the Senate Agriculture Committee, both said last week that they are concerned about the potential impact of President Biden’s proposed elimination of stepped up basis on the inheritance of farm property, but they differed in their emphasis.
In the opening statement at a hearing Thursday on opportunities for foresters to address climate change, Boozman said he is concerned about the Biden administration’s “tax proposal on capital gains and stepped-up basis, which may have significant implications for the agriculture and forestry industries by frustrating, rather than facilitating, market opportunities for landowners, timber harvests and the wood product industries.”
The Agriculture Department has said that the Biden administration wants to continue stepped up basis on farm land as long as the farm remains operated by the family. The USDA statement did not specifically address forest land.
But Boozman said the Biden administration’s proposal to increase capital gains taxes would also cause problems for both farmers and foresters.
After the hearing while she talked to reporters, Stabenow noted that there is a lot of support from Democrats to keep the elimination of stepped up basis from affecting farmers and family-owned businsses.
Boozman then noted that he is also concerned that Biden’s proposed increase in capital gains taxes would cause burdens for farmers and foresters
In Arkansas, he noted, people face another 6% capital gains tax. Land amounts to farmers’ 401(k) retirement programs and the increase in capital gains would mean they face higher taxes than someone with a 401(k).
Stabenow added, “Everyone should be paying their fair share” in taxes and that includes “wealthy people and corporations” that use the roads.
Leaders of the Federation of Southern Cooperatives/Land Assistance Fund and the National Black Farmers Association have expressed dissatisfaction with the provisions in the Inflation Reduction Act (IRA) to resolve legal problems that have occurred with…
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