President Obama is receiving criticism for many parts of his 2016 budget proposal. House Ag Committee Chairman Mike Conaway chastised the President’s plan to eliminate the stepped up basis for inherited property. Nebraska Farm Bureau National Affairs Coordinator Jordan Dux says without stepped up basis, heirs would have to pay capital gains taxes.
Dux says with his proposal, the President is going against what his own Ag Secretary told the American Farm Bureau at their recent national convention. He says Ag Secretary Tom Vilsack talked about the importance of stepped up basis in allowing younger producers to inherit farms and ranches without having to pay more taxes.
Dux says overall the President’s budget plan ignores the federal budget deficit, cuts needed provisions while concentrating on programs that don’t benefit farmers and ranchers.