[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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