Central Missouri News

Ahead of National Agriculture Day, Congressman Mark Alford (MO-04) has joined a group of representatives in reintroducing legislation to maintain the stepped-up basis provision within the tax code. This measure allows Americans to avoid paying capital gains taxes on inherited assets like land, equipment, or buildings by adjusting their cost basis to reflect fair market value. A study by the U.S. Department of Agriculture’s Economic Research Service indicates that 66% of midsized farms would face increased tax liability if this provision were removed.

“Missouri’s family farms and small businesses are the backbone of the Fourth District’s economy and way of life,” said Rep. Alford. “The stepped-up basis ensures that hardworking American families can pass down their legacy without being burdened by crushing tax liabilities."

Rep. Tracey Mann (KS-01) emphasized the importance of family-owned operations, stating, “More than 98% of all American farms and 90% of American businesses are family-owned and operated." He warned against eliminating the stepped-up basis, describing it as a "farm killer tax" that could harm producers and small business owners nationwide.

Rep. Angie Craig (MN-02), Ranking Member of the House Agriculture Committee, expressed her support for preserving this provision: “Minnesota’s family farmers work hard to be able to pass their operations onto their kids and grandkids, and we should be making that easier to do – not harder.”

In California's San Joaquin Valley, Rep. Jim Costa (CA-19) highlighted how crucial these family farms are to local economies: “Over 90% of farms nationwide are family-owned... Preserving the stepped-up basis will help ensure that family farms and small businesses can continue to thrive.”

Rep. Bob Latta (OH-05) pointed out the significance for rural communities: “The last thing rural Americans need to be worrying about is the elimination of the estate tax’s stepped-up basis provision.”

The resolution aims for Congress to uphold this tax code element while opposing new taxes on family farms or small businesses. The initiative has gained backing from numerous representatives across various states.

“Family farms and small businesses are the backbone of our economy,” stated Rep. Moore in support of House Resolution 206.

“As a fourth generation farmer," added Rep. Brad Finstad (MN-01), "I know firsthand the challenges our farmers and producers face when trying to pass down their operations."