[Congressional Record Volume 168, Number 56 (Wednesday, March 30, 2022)]
[House]
[Pages H3976-H3977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            FARM KILLER TAX

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Kansas (Mr. Mann) for 5 minutes.
  Mr. MANN. Madam Speaker, in preparation for reauthorizing the farm 
bill in 2023, I rise today to deliver the sixth installment of my farm 
bill impact series, where I am highlighting various aspects of the farm 
bill that deserve Congress' awareness and support. For this legislation 
to be effective, it must support the efforts of both today's farmers, 
ranchers, and agricultural producers, as well as those of the next 
generation.
  I had planned to get up on the floor today to talk about how 
America's hope for food security in the future lies on the shoulders of 
young Americans who are voluntarily bearing the burden of feeding, 
fueling, and clothing the world. I was going to talk about all the 
great programs and organizations that we have in this country for young 
people who are interested in agriculture. I was going to talk about the 
new Beginning Farmer and Rancher Development Program through USDA, and 
the importance of preserving the stepped-up basis in the Tax Code to 
ensure that family farms in America don't get taxed out of existence.
  Then President Biden's disastrous budget came out earlier this week. 
President Biden threatens the stepped-up basis yet again as we know it 
in the budget that he just released. If it becomes law, the food 
security and, therefore, national security of America hangs in the 
balance.
  Here is why the stepped-up basis exists and why it is so important. 
Let's say you are a young person working on your family's farm, and you 
are slowly taking on responsibility and risk. You work for your parents 
in the operation until the time comes for you to inherit the land, 
equipment, and livestock. When that happens, the Federal Government 
should not jump in and impose taxes on the unrealized gain of your 
inherited land and assets. This principle is called the stepped-up 
basis, which has long been precedent in the Tax Code.

[[Page H3977]]

  The President's budget imposes new capital gains taxes at death, 
which will kill family farms. This is appalling. America is trying to 
recover from a pandemic, and farmers, ranchers, and agricultural 
producers are struggling to survive as they cope with crises that this 
administration has caused, like the broken supply chain and rampant 
inflation. And now this administration wants to impose new taxes on 
these people?
  And the President didn't stop there. His budget also includes a new 
capital gains tax that I am going to call the farm killer tax. In 
Biden's budget, unbelievably, there is a proposal to impose capital 
gains taxes on farms that have been in families for over 90 years. 
Think about that. In 1940, the average cost of Kansas farmland was $50 
per acre. Now, irrigated land is over $4,000 per acre. Imagine the 
capital gains tax implications in that history of ownership. This 
proposal would impose hundreds of thousands of dollars in new capital 
gains taxes on farmers, killing their businesses overnight.
  Again, I was going to stand here today and talk about how important 
it is for Congress to support farmers, particularly the men and women 
who operate family-owned-and-operated multi-generational family farms. 
I was going to talk about how, in the name of supporting America's 
incredible producers, Congress needs to think carefully and critically 
about the programs we reauthorize in the 2023 farm bill.
  I didn't expect that I would see the farm killer tax in the budget 
this week. This new tax is not a game-changer, it is a game-ender for 
thousands of family farms. I am, frankly, in disbelief.
  Farming is a multi-generational calling. Farmers, ranchers, and ag 
producers are my family and friends. They are America's heroes, and the 
ideas in this budget, threatening the stepped-up basis and imposing the 
new farm killer tax, are going to destroy the livelihoods of many in 
agriculture and make our country less secure. The President needs to 
wake up to reality. Farmers, ranchers, and agriculture producers have 
earned our support, and his budget ideas are the opposite of that. They 
are a gut punch to the people who feed, fuel, and clothe this Nation.
  This week, I am introducing a bipartisan resolution, along with 66 of 
my colleagues, that supports the preservation of the stepped-up basis, 
opposes any efforts to impose new taxes on family farms and small 
businesses, and recognizes the importance of generational transfers of 
farm and small business operations. Again, this is something I was 
going to do anyway because of how important preserving the stepped-up 
basis is. Today, given Biden's disastrous budget, this message is more 
important.
  If we want to invest in the future of our country, which I think we 
can all agree that we do, we need to invest in the next generation of 
America's farmers, ranchers, and ag producers. I will be back on the 
floor soon to deliver another installment of my farm bill impact series 
and highlight more programs and titles within the bill that Congress 
must understand and support to ensure that agriculture thrives in 
America. Hopefully, when I am standing here to speak next time, I won't 
have to address any more ideas that this administration may have had 
for destroying the livelihoods of America's farmers, ranchers, and ag 
producers. We must kill Biden's farm killer tax.

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