Senator John Thune: Biden, Democratic reckless tax and spending scatter will thin out family farms and businesses

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A disaster could be avoided by the worst COVID-19 pandemic. We never ran out of food. Sure, supply chain problems were common across industries, but the pain of blockages across the country was not accompanied by widespread food shortages and rations.

For that you can thank the farmers and ranchers, and so should we. With or without a pandemic, American farmers and ranchers seemed to be feeding the world on a daily basis as always.

So it’s amazing that President Biden is proposing a new tax hike for family businesses and farmers to pay $ 3.5 trillion in reckless taxes and expenses.

US tax law allows the family business to be passed on to the next generation without capital gains tax being levied on the previous generation’s built-in profits. After all, many of these “benefits” were not realized. Land prices may have risen because they were owned by previous generations, but farmers haven’t seen a penny of real profit. It’s called “basically a step up” and prevents the family from paying a fortune when a loved one dies.

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However, the Biden government has sought to pay for the far-left crusade to permanently enlarge the federal government and fund extensive tax incentives so that it covers this long-standing part of tax law. And.

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They propose for the wealthy Americans of the Blue States.

The Texas A&M Agricultural and Food Policy Center looked at how this new tax would affect family businesses and found that 98% of the top farms in the 30 state database are paying high prices. How much? On average, this proposal will increase tax obligations by $ 726,104 per farm.

Nobody likes to pay taxes, but this high overhead is often an unrealized benefit just to sell part of the farm to the family or to pay the tax. You can lose your farm entirely. Family-owned farmers are already threatened with rising inheritance taxes by the time they take over their holdings, and the president’s plans will hurt them with even higher tax burdens.

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This has the potential to devastate states like me, where agriculture is the largest industry and our lifeline. Almost all farms in South Dakota are family owned and owned. Farmers dream of doing the operation in better shape than if they had operated on their loved ones. In fact, more than 2,500 farms in South Dakota have been under the control of the same family for over 100 years.

This proposed tax – the Democrats’ new “double inheritance tax” – could threaten our economic recovery and threaten the future of American agriculture. It would be terribly unfair to American hard-working farmers and businesses belonging to other generations, and especially ruin the work of local communities and small towns.

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Every Senate Republican opposed the president’s proposed tax hike on the family business and signed my letter to the president asking them to forego this fake tax. But if he doesn’t, we won’t give up.

In an evenly divided Senate, only a Senate Democrat has the courage and common sense to stand up for the state peasants and kill this double inheritance tax. Half-hearted protection will open the door to family businesses based on lifelong efforts and savings.

When the Senate thinks about future budget decisions, I will table amendments to register the Democrats and insist on recorded votes.

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Family businesses and farms have gone through the worst of the weather to make the American dream come true and are worthy of Washington.

Families who rely on these generation-run companies are watching.

Senator John Thune: Biden, the Democrats’ reckless tax and spending dispersal will thin out family businesses and businesses

Source link Senator John Thune: Biden, the reckless tax and spending dispersion of the Democrats will thin out family businesses and businesses