President Joe Biden has released his proposed 2022 budget which includes $6 trillion in spending as well as controversial tax provisions. Included is long term capital gains and qualified dividend income being subject to a nearly 40 percent tax ret on net capital gains over $1 million of taxable income. SDSU Extension Risk Business Management Specialist and Economist Matt Diersen says producers need to be aware of this proposal and look at their five-year operating plan.

He says those proposed tax changes will likely have some impact on those adding to or downsizing their operation or selling off part of it.

Diersen says producers also need to figure out what the long term ramifications are to their ag operations should the President’s budget provisions get approved by Congress.

The President’s proposed 2022 budget is being called the Green Book and calls for raising the corporate income tax rate to 28 percent as well as hiking capital gains taxes.