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A new coalition against federal tax increase proposals argues new tax codes could unfairly target Nebraska farm and ranch families who might be forced to sell part of their land to pay huge tax bills.
Nebraskans for Tax Truth is led by the Nebraska Farm Bureau and the Nebraska Chamber of Commerce and says the proposed elimination of the so-called “stepped-up basis” could mean tax liabilities for farm and ranch land would balloon because there would be no “reset” in value when a farmer or rancher dies and passes land on to other family members.
“We believe and we’re very concerned that the message that’s actually coming out of Washington D.C. on these proposals don’t do justice to explaining the potential negative impacts that these tax hikes could have on Nebraska family farms, businesses and communities and I would say for the future growth of our state,” Nebraska Farm Bureau President Mark McHargue said.
Some Republican lawmakers, including Representative Jeff Fortenberry, support the coalition and said the tax proposals are bad news for Nebraska farmers and ranchers who won’t be able to afford increased estate tax bills.
“These potential tax code changes could result in the further concentration of land in fewer and fewer hands, undermine the whole prospect for vibrancy in rural communities and lose that intergenerational opportunity and expertise to grow our food,” Fortenberry said.
Senator Ben Sasse said the proposals are a bad idea.
“This isn’t just an economic productive livelihood, it’s a way of life and because these tax increases produce real fear for farmers and ranchers and small businesses, they’re worried they’re going to have to sell to pay the tax, we need to fight back against that,” Sasse said.
One reason for concern is that asset values for farmers and ranchers have appreciated, sometimes increasing by two or three times their value over the past 20 years. Currently, when a farm or ranch is passed down to the next generation, that appreciation isn’t factored in when it comes to capital gains taxes for the family member assuming ownership.
The Biden administration defends the proposal, saying the money is needed for infrastructure and that wealthier Americans aren’t paying their fair share of the tax burden.