Republican members of the Senate Agriculture Committee are calling on USDA Secretary Tom Vilsack to make public a detailed explanation and any supporting economic analyses that clarifies how the Biden administration's proposed tax increases will affect farm estates.
The panel's Ranking Member John Boozman, R-Ark., authored a letter to Vilsack that questioned USDA's analysis of President Joe Biden's proposed changes in capital gains tax rates and the modification to stepped-up basis on America's family farms and ranches.
The letter specifically asks for an explanation of how USDA arrived at the conclusion 98% of farm estates will not be impacted by the proposed tax changes.
“The proposed tax impacts are dependent on a number of factors, including but not limited to appreciation in farmland assets prior to a property owner's death, size of the farm operation and associated assets, income of the heirs, and the farm's ownership structure. Given these factors, we are writing to seek a detailed explanation and supporting economic analysis clarifying how these tax provisions will affect farm estates, including specifically how USDA arrived at the conclusion that fewer than 2% of farm estates will be impacted by the proposed tax changes,” the senators wrote.