Noem Outlines Agriculture’s Tax Reform Priorities
Congresswoman shares tax ideas with House Ag Committee
Washington, D.C. – Rep. Kristi Noem today outlined tax reform priorities for farmers and ranchers during a House Agriculture Committee hearing.
Noem highlighted efforts to repeal the Death Tax, protect cost-recovery mechanisms in the tax code to help young producers, and develop provisions to help when purchasing land and machinery.
More specifically, Noem explained:
“Just as the Farm Bill touches every family’s life because everyone eats, tax reform will impact everyone’s life because we all pay taxes in one way or another….
“We know some areas of the tax code disproportionately and unfairly impact America’s agriculture community. This includes the Death Tax…. That’s why I’ve sponsored legislation to repeal the Death Tax and was glad it was included in the House Ways & Means Blueprint.
“Additionally, what many don’t quite realize is how highly leveraged agriculture is…. Ensuring there are adequate cost-recovery mechanisms in the tax code is essential to attracting and keeping younger producers on the farm.
“Some use a combination of interest and expensing for operating notes and equipment purchases. Because land is a principle input for agriculture, ensuring there continues to be a cost-recovery mechanism for land purchases remains a priority.
“All this said, … [p]rovisions cannot be looked at in isolation. I encourage you to view tax reform as a comprehensive package that is aimed to increase opportunity and growth for Americans from all walks of life.”
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Here we go again.
Kristi says, “We know some areas of the tax code disproportionately and unfairly impact America’s agriculture community. This includes the Death Tax…”
Some tax areas do disproportionately impact agriculture. Property taxes being one, I believe.
But the “Death Tax” doesn’t impact anyone who is not worth multiple millions of dollars. There is already an enormous exemption in place. 5.5 million dollars per individual and $11,000,000 for a couple before taxes are levied.
Farm values have climbed to five or ten times what they were a few decades ago but income taxes are not paid on that wealth, are they? So when this farm is turned over to the next generation, they should have no tax obligation either? Really? But salaried folks like me just keep paying?
Republicans need to stop this fixation with further eliminating taxes on the wealthy and start caring about the rest of us. We pay on forty or fifty thousand dollar incomes even if our net worth is zip. And yes, even when our loved ones pass away.
Farms worth more than ten million dollars will be just fine, Kristi.
It’s use of family farms as a prop to attempt to benefit no more than a few 1000 families nationwide. The information is out there and easy to find. Do you think those backing a repeal really know this or are they just easily fooled.
How about a compromise of making the death tax not apply to agriculture ground…that way it protects farmers but not the megarich?
I know thinking outside the box again.
Expand the special use valuation to make an 11 million dollar exemption larger might be better but if the total estate value is 20 million net, can we agree these aren’t the Rockwell small family farm folks.