Home Farm Equipment Efforts to change the estate tax appear to have slowed down

Efforts to change the estate tax appear to have slowed down

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The Rating Member of the Home Agriculture Committee says efforts to change the estate tax appear to have slowed down thanks partly to a research that exhibits altering the guidelines on inherited property might elevate taxes a mean of $1.4 million on the typical farm.

“I think we threw a little sand in the gears with this proposal, not to say they won’t continue to pursue it,” stated Rep. Glen “GT” Thompson, a Republican who represents Pennsylvania’s fifteenth Congressional District, and has served as Rating Member of the Home Agriculture since the new Congress was sworn in in January.

Thompson, talking at the Southeastern Cotton Ginners mid-year board assembly at the Ritz-Carlton in Amelia Island, Fla. Jul 23, cited a research that he and Sen. John Boozman, a Republican from Arkansas, Rating Member of the Senate Agriculture Committee, requested from the Agricultural and Meals Coverage Analysis Heart (AFPC) at Texas A&M College. The AFPC research analyzed two payments launched in the Senate — the Wise Taxation and Fairness Promotion (STEP) Act, which proposes to get rid of stepped-up foundation upon demise of the proprietor and the For the 99.5 % Act, which might lower the estate tax exemption.

The STEP Act’s proposed modifications to a stepped-up foundation mirror proposals mentioned by the Biden administration. If it have been to be applied, 92 of AFPC’s 94 consultant farms could be impacted with a mean extra tax legal responsibility of greater than $720,000 per farm. Collectively, the two payments would elevate taxes a mean of $1.4 million on 98 p.c of AFPC’s consultant farms.

Thompson stated the research is vital as a result of it checked out farms of various sizes in numerous areas that develop completely different commodities. He famous the solely farms that wouldn’t see a tax enhance from the two payments are operations the place the famer doesn’t personal any of the land, subsequently there wasn’t an asset that may very well be taxed.

Thompson stated the excellent news is that whopping $1.4 million determine has slowed down the Biden administration’s discussions on elevating the estate or demise tax. “Although that analysis was just on farms, I think the analysis applies to processors and small businesses across the country. If they pursue it, it is not good news for the American economy going forward,” Thompson stated.

Cross Workforce Act

In the meantime, Thompson stated he hopes the Senate will take up and move the Farm Workforce Modernization Act that handed the Home beneath a bipartisan vote. Thompson stated he voted for the invoice and hopes the Senate will refine it. As of now, the Senate has taken no motion on the invoice. He did observe that the invoice is imperfect and should be improved earlier than changing into legislation.

The Farm Workforce Modernization Act would permit a restricted variety of H-2A visas for year-round jobs — up to 20,000 per yr in the first three years — with changes to the cap by way of 10 years, adopted by an evaluation every year thereafter of whether or not there needs to be a cap and what it needs to be, based mostly on specified components.

Employers in search of to entry the H-2A program for year-round employment, nevertheless, could be required to present extra protections, together with household housing and an annual paid journey residence

Thompson stated he hopes “common sense will prevail and they will see the greatest threat to national security in this country is food and fiber insecurity, rural America insecurity, that is largely driven by workforce issues.”

He famous that workforce points in agriculture and elsewhere have predated the pandemic.

“The fastest way to food insecurity, economic insecurity, is for agriculture not to have a reliable workforce. Then you throw the virus in there and compound that with $1,400 checks per family member, extended unemployment, and child tax credits, you incentivize people not to work. America’s strength is its workforce; it sets America apart,” Thompson stated.

Thompson stated he supported the stimulus in 2020 as a result of it was wanted throughout the top of the pandemic, however he didn’t assist the stimulus bundle in January 2021. He stated now it’s time for individuals to return to work.

Lastly, Thompson expressed concern for the Biden administration’s intention to undo the Trump administration’s Navigable Waters Safety Rule. He and different Republican members on the Home Agriculture Committee are involved the Biden administration has signaled it desires to revise the definition of the Waters of the United States”(WOTUS) beneath the Clear Water Act and doubtlessly return to Obama-era rules that broadened what is taken into account a navigable stream to every part from farm ponds to ditches.

Thompson stated a ruling by the U.S. District Court docket in South Carolina July 14 that the Trump administration rule should stay in place till the new Biden administration rule is applied “was a blessing.” He stated the Obama Waters of the U.S. rule “was the largest private property taking in the history of our country.”

U.S. Rep. Glenn “GT” Thompson, Rating Member of the Home Agriculture Committee, heart, checks out the varied cotton grades at the USDA-AMS exhibit throughout the mid-year board assembly of the Southeastern Cotton Ginners Affiliation at the Ritz–Carlton in Amelia Island, Fla.  July 23. Becoming a member of Thompson are Steve Sterling, left, president of the affiliation and basic supervisor of Cotton Producers Co-op of Tuscumbia, Ala.; and Kent Fountain, chairman of the Nationwide Cotton Council and president/CEO of Southeastern Gin and Peanut in Surrency, Ga. Credit score: John Hart

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