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The Midwest Cattleman · August 19, 2021 · P15
over $400,000 in taxable in- “As you will recall, a propos- make it much more difficult, or duced by Democrats to elimi-
come annually from 37 percent al to reach a similar outcome by even impossible, for parents to nate stepped-up basis, 92 of the
to 39.6 percent. requiring an heir to ‘carry-over’ pass on their farm or ranch to 94 representative farms would
Devastating effect the decedent’s tax basis was their children. This is a criti- carry tax liability averaging
Sen. John Thune (R-SD), the tried before in 1976—and failed cal tool for America’s farmers $726,104 per farm.
Senate minority whip, led a let- so spectacularly it never came and ranchers, and we urge all Under another bill that
ter released July 21 signed by into effect. It was postponed in members of Congress to oppose would roll back estate-tax ex-
1978 and repealed in 1980.”
efforts to eliminate it.”
every Senate Republican call- Thune’s news release in- emptions to $3.5 million for an
ing on Biden to drop the capi- Republicans point to a study individual or $7 million a cou-
tal-gains increase, arguing it cluded a quote from Zippy Du- released by Texas A&M’s Agri- ple—combined with dropping
“would have a devastating ef- vall, president of the Ameri- cultural and Food Policy Cen- the stepped-up basis—the tax
fect on multi-generation” busi- can Farm Bureau Federation. ter in June, citing that just two liability goes to about $2.17
nesses, farms and ranches. “Passing on the family farm of 94 representative farmers million per farm.
to the next generation is a top are affected by current tax pol-
The GOP senators wrote, WLJ
“These businesses consist priority for many farmers and icy that exempts $11.7 million
ranchers,” Duvall said. “Elimi- in assets for individual heirs
largely of illiquid assets that nating stepped-up basis and in- in an estate, or $23.4 million
will in many cases need to be creasing capital gains taxes will per couple. Under a bill intro-
sold or leveraged in order to
pay the new tax burden. Mak-
ing these changes could force
business operators to sell prop-
erty, lay off employees, or close WHY ARE WE STILL HERE AFTER MORE THAN 25 YEARS?
their doors just to cover these
new tax obligations.
“The complexity and admin-
istrative difficulty of tracking
basis over multiple generations
and of valuing assets that are
not up for sale will lead to colos-
sal implementation problems
and could also lead to huge tax
bills that do not accurately re-
flect any gains that might have
accumulated over time.

MAKE SURE YOU ARE September 10, 2020 Volume 26 No. 8

Custom built shorter or longer beds.
Standard Equipment: Arm extensions, IN OUR SPECIAL
GN & receiver hitches, side rails, lights,
trailer plus & pioneer quick connects.
CHAROLAIS

FEATURE

SEPTEMBER 9TH Charolais
6TH
Page 18
Across the bed toolbox
70”L x 10”H x 20’W - complete with
stainless steel hinges, tray and gas shock.
Side toolboxes
30”L x 17”H x 12”D
standard size of
12 ga. steel with
stainless steel hinges
and latch.
KROGMANN MFG. INC
A Family Owned & Operated Business!
877-745-3783 toll-free
1983 X Road, Sabetha, KS (call for a dealer near you) PHONE: 417-644-2993 - EMAIL: CATTLEMAN@CUTTINGEDGEUS.COM
www.krogmannmfg.com
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