Washington, D.C. (September 16, 2021) – Yesterday, the House Ways and Means Committees advanced its contributions to the proposed $3.5 trillion budget reconciliation package, which included provisions to offset components of the bill. The National Association of Wheat Growers is glad to see that proposals to tax capital gains at death were not included in the committee advanced package, preserving the benefit of stepped-up basis. However, language was included that would lower the current estate tax exemption.
“We appreciate the House Ways and Means Committee preserving much of the current tax code that helps protect family farms and pass land on to the next generation. Throughout the debate, proposals that would have eliminated stepped-up basis or limited farmers ability to utilized 1031 like-kind exchanges would have resulted in a massive tax burden on U.S. farmers that would drive many family farming operations out of business,” said NAWG CEO Chandler Goule. “As Congress continues to navigate this process, NAWG will continue to work to protect these key components of the tax code and work to educate members on as to why these – and the estate tax exemption – play a key role in preserving and protecting family farms.
NAWG will continue to work with Members of Congress as the reconciliation package is considered by the full House of Representatives.