May 20, 2021
Last week, UEP joined several agricultural groups in sending a letter to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy. The letter outlines the industry’s concerns with several legislative proposals to alter and/or eliminate long-standing tax code provisions that would jeopardize family-owned business.
First, the letter requests that Congress preserve tax provisions that support future, new, and multi-generational operations. Specifically, the letter discusses protecting the estate tax exclusion that gives farmers the ability to pass businesses down through multiple generations. The letter also outlines concern with a new capital gains tax at death. While this proposal was well-intentioned and included “with protections so that family-owned businesses will not have to pay taxes when given to heirs who continue to run the business,” there are still fears that this will increase costs and further limit the availability of farmland.
The letter also requests that Congress safeguard the viability of all family-owned agricultural business entities by continuing the Sec. 199A business income deduction and like-kind exchanges. These provisions maintain a reasonable level of taxation to help farmers’ and ranchers’ cash flow and allow them to reinvest in their business.
See also “Bipartisan, bicameral bill to reduce estate tax by half,” from Feedstuffs.
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