Frontline, Farm-State Democrats Push Back Against Biden Tax Plan
A group of 13 House Democrats, led by Iowa’s Cindy Axne and California’s Jim Costa, is pressing party leaders to exempt family farms from a tax increase President Joe Biden has proposed on inherited assets to help pay for new child care, education and other spending.
Under Biden's $1.8 trillion package of family-related assistance, heirs would no longer receive "stepped up basis" for capital gains tax purposes, which resets the value of inherited property to the date of death. Instead they'd be liable for the tax on the full appreciation in value from the time the original owner purchased the assets, in some cases many decades earlier.
“The requirement to recognize capital gains at death runs the risk of forcing farms and ranches to sell part, or all, of a farm that may have been passed down for several generations in order to pay the tax burden,” the group wrote in a letter to Speaker Nancy Pelosi, House Majority Leader Steny H. Hoyer and Ways and Means Chairman Richard E. Neal.
Biden's proposal would start taxing gains on inherited assets above $1 million, or $2.5 million per couple factoring in the current tax exclusion for up to $500,000 in gains on a primary residence. Furthermore, Biden would raise the top capital gains tax rate from the current 23.8 percent to 43.4 percent for those earning above $1 million annually.
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Under Biden's $1.8 trillion package of family-related assistance, heirs would no longer receive "stepped up basis" for capital gains tax purposes, which resets the value of inherited property to the date of death. Instead they'd be liable for the tax on the full appreciation in value from the time the original owner purchased the assets, in some cases many decades earlier.
“The requirement to recognize capital gains at death runs the risk of forcing farms and ranches to sell part, or all, of a farm that may have been passed down for several generations in order to pay the tax burden,” the group wrote in a letter to Speaker Nancy Pelosi, House Majority Leader Steny H. Hoyer and Ways and Means Chairman Richard E. Neal.
Biden's proposal would start taxing gains on inherited assets above $1 million, or $2.5 million per couple factoring in the current tax exclusion for up to $500,000 in gains on a primary residence. Furthermore, Biden would raise the top capital gains tax rate from the current 23.8 percent to 43.4 percent for those earning above $1 million annually.
Click Here to read more.