Congressman Sam Graves (MO-06) joined Representatives Tracey Mann, Jason Smith, Bob Latta, and a bipartisan coalition of more than 70 members of Congress in introducing a resolution recognizing the important role of the stepped-up basis in preserving family farms and small businesses.
"If the President gets his way and guts the stepped-up basis, it would spell disaster for thousands of family-owned farms and small businesses," said Rep. Graves. "His tax plan threatens to hit families with massive tax bills when a loved one passes their family operation on to the next generation. The end result would be more family farms being sold at the courthouse steps because loved ones simply can't afford to pay the tax collector. We can't let that happen."
"We continue to see damaging policies in the Biden Administration's tax plan, including an effort threatening with the stepped-up basis," said Rep. Mann. "Removing this provision would hurt generational Kansas farmers and ranchers and weaken their ability to keep assets in the family. The day-to-day trials of operating a successful farm, ranch, or small business are challenging enough without worrying about paying devastatingly large capital gains taxes. We must preserve the stepped-up basis and protect agriculturists now and in the future."
The resolution is supported by the National Cattlemen's Beef Association, American Farm Bureau Federation, National Corn Growers Association, American Soybean Association, USA Rice, National Grange, and National Council of Farmer Cooperatives.
According to the U.S. Department of Agriculture, 98% of farms are family-owned. If the stepped-up basis is eliminated, 66% of all mid-sized farms would see an increased tax liability.