The U.S. House this week is expected to mark up their $3.5 trillion reconciliation budget bill. Ag groups are concerned they’re looking at eliminating Stepped Up Basis and putting that in this measure. The American Farm Bureau and several of its state groups have sent these concerns to Congress. North Dakota Farm Bureau Public Policy Director Pete Hanebutt says without stepped up basis, those inheriting farm or ranch property will then face astronomical tax rates.
Nebraska Farm Bureau’s Director of National Affairs Jordan Dux says keeping stepped up basis and other tax tools in place is critical to the survival of farmers and ranchers.
He says by eliminating stepped up basis it results in an additional tax bill placed squarely on the shoulders of agriculture and would also prevent many young people from staying in agriculture who couldn’t afford to inherit the operations their parents want to pass down to them.
Hanebutt says there were attempts in the past to eliminate the stepped up basis the most recent being in 1997 and 1976. He says both of those attempts failed when cooler heads prevailed.
