Government Watch / Politics

Americans Say Supercharged Second Death Tax Targets Family-Owned Businesses and Farms

family

WASHINGTON, D.C. – The Biden Administration’s proposal to create a second death tax—by repealing “stepped-up basis”—will harm America’s family farms, ranches, and Main Street businesses and will kill 1 million jobs, according to testimony during a Ways and Means Republican meeting on Tuesday.

Stepped-up basis is what makes it possible for a family business—like a farm—to pass from one generation to the next without being forced to sell off assets to pay an enormous tax bill to Washington.

But Democrats’ proposal to repeal stepped-up basis threatens the livelihoods of America’s farmers, ranchers, and small business owners.

READ: Democrats’ Supercharged Death Tax Targets Family-Owned Businesses and Farms, Costing 1 Million Jobs

Pat McDowell, owner of McDowell Ranch, warned that Democrats’ repeal of stepped-up basis threatens his family’s ability to pass their five-generation cattle operation on to their niece:

“This is our story. We are 59 to 65 years old. Our goal is to pass our family ranch and farm to my niece and her husband, because they want to continue our family business. We’ve done considerable estate planning which has cost a lot of money, and time. Our estate plan has been centered on using stepped-up basis. The Biden administration proposal totally undermines our estate plan. This plan punishes our family, just because we want the next generation to be able to make a living in agriculture. […]

“Taxing farmers and ranchers out of business only demolishes our national food security. Our kids want to be able to continue to help feed our nation. […]

“The loss of stepped-up basis will kill our family farm.”

CLICK HERE to watch Mr. McDowell’s full opening remarks.

Don Batie, President of Baite cattle company, a family-owned farming corporation, highlighted the vital role family-owned businesses play in local communities:

“Farms are just one example of family-owned businesses that are affected by these taxes. Small family-owned businesses are the bedrock of our communities. They support the youth teams, local fundraisers, local celebrations. Capital gains, estate taxes, and stepped-up basis are related. All deter family businesses from continuing for another generation.”

Michael Gilmartin, President of Commercial Creamery Co., added how this supercharged death tax could mean the end for many family businesses, including his:

“If there’s new legislation that eliminates the stepped-up basis, and makes my death a taxable event, there’s no way my kids can pay that tax. […]

“It’s already extremely difficult to carry a family business into the third and fourth generations. We’ve had fires, and we’ve had fights, and I think by going forward with this eliminating the stepped-up basis, we’re saying we don’t value the family businesses and we’re going to make them go away. I think it’s ironic that that’s a part of the American Families Plan.”

Reprinted with Permission from - Committee on Ways and Means by - J.P. Freire, Jessica Henrichs & Leo Lutz

We hope you've enjoyed this article. While you're here, we have a small favor to ask...

As we prepare for what promises to be a pivotal year for America, we're asking you to consider a gift to help fund our journalism and advocacy.

The need for fact-based reporting that offers real solutions and stops the spread of misinformation has never been greater. Now more than ever, journalism and our first amendment rights are under fire. That's why AMAC is passionately working to increase the number of real news articles we deliver WEEKLY, while continuing to strengthen our presence on Capitol Hill.

AMAC Action, a 501 (C)(4), advocates to protect American values, free speech, the exercise of religion, equality of opportunity, sanctity of life, the rule of law, and love of family.

Thank you for putting your faith in AMAC!

Donate Now

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter
and Download the AMAC News App

Sign Up Today Download

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter!

Sign Up Today
Read more articles by Outside Contributor
Subscribe
Notify of
3 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Claudette
2 months ago

The left want us to loose our business’s and farms so Bill Gates and China can have to land! We have to fight to keep i!

Deborah
2 months ago

Stop the destruction of our small businesses! Since he got into office, he has done absolutely nothing to help American citizens prosper!

PaulE
2 months ago

A good, accurate article of what the fallout would be to most small businesses in this country. Large, multinational companies like Amazon and others would simply be able to scoop up highly profitable family businesses at pennies on the dollar once the owners pass away and their survivors are unable to write a massive check to the IRS for the death taxes due on the stepped up basis of the assets. In the end, the vast majority of all small businesses would be owned by a small group of multi-national corporations that all write large campaign donation checks to the Democrat party. A win-win for the Democrat party and their financial backers.

3
0
Would love your thoughts, please comment.x
()
x