Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Agricultural News


The American Families Plan Honors America's Family Farms

Thu, 29 Apr 2021 08:00:56 CDT

The American Families Plan Honors America's Family Farms The American Families Plan includes critical tax reform to ensure that the wealthy pay their fair share of taxes in order to finance essential investments in workers and families, including childcare, nutrition, higher education and more. One of those reforms is a change in the way capital gains are treated in our tax system so that, for people making over $1 million, the tax system no longer favors income from wealth over income from work. The plan won’t raise taxes on anyone making less than $400,000 a year.

Part of this plan to make sure the wealthy pay their fair share is a proposal to close the “stepped-up basis” loophole for wealthy estates so that enormous fortunes do not completely escape taxation. Under the proposal, unrealized capital gains (those that have never been previously taxed) are taxed at death above $2 million in gains per couple. But this won’t affect family farms that stay in the family.

· Under this proposal, estimates indicate more than 98% of farm estates will not owe any tax at transfer, provided the farm stays in the family. The tax the remaining less than 2% would owe, would be on their non-farm assets.

The President recognizes the importance of agriculture and family farms to the American economy and way of life. He also recognizes the risks and economic challenges unique to agriculture, family farms and ranching operations across America. The Biden Administration is committed to American agriculture, family farms, ranches and the rural way of life. The American Families Plan protects family farms and ranches in two key ways:

· No capital gains taxes at death for family farms. This plan includes a special protection for family-owned farms and businesses. It defers any tax liability on family farms as long as the farm remains family-owned and operated. No tax is due if the farm stays in the family. No one should have to sell a family farm they inherit to pay taxes and the President’s tax reform guarantees that.
· $2 million exclusion from increased capital gains for all married couples. This plan also excludes the first $2 million of gains per couple ($2.5 million if the farm also includes the family home) from capital gains tax and heirs continue to get step up in basis on those first $2 million in gains. If an heir decides to sell the family farm, the first $2 million in gains is tax free.

How the President’s Capital Gains Reforms Affect Family Farms:

· A married couple with $900,000 of farm gains and $200,000 of non-farm gains passes the farm onto their children. No capital gains taxes are owed, even if they sell the farm because the $1.1 million in gains are below the $2 million per-couple exemption.
· A married couple with $3.0 million of farm gains and $250,000 of non-farm housing gains passes the farm onto their children. No taxes due as long as the children keep the family farm.

The President’s capital gains reforms are a key part of building a tax code that rewards work, and not wealth. The American Jobs Plan and the American Families Plan are once-in-a-generation investments in our nation’s future. The American Jobs Plan will create millions of good jobs, rebuild our country’s physical infrastructure and workforce, and spark innovation and manufacturing here at home. The American Families Plan invests $1.8 trillion in our children and our families-helping families cover the basic expenses that so many struggle with now, lowering health insurance premiums, cutting child poverty, and producing a larger, more productive, and healthier workforce in the years ahead. Together, these plans reinvest in the future of American families, American workers, and the American economy.

To learn more about the American Families Plan, visit the White House



   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Thursday, May 13, 2021 Market Wrap-Up with Justin Lewis  Thu, 13 May 2021 13:56:23 CDT
  • USDA-NIFA, CDC and Cooperative Extension Team Up for Vaccine Education in Rural America  Thu, 13 May 2021 10:35:15 CDT
  • Dallas, San Antonio and Oklahoma City to face 'nasty' Severe Weather  Thu, 13 May 2021 09:28:28 CDT
  • Oklahoma Ag Secretary Blayne Arthur Says There is a Positive Dynamic in The Oklahoma Ag Industry Today  Thu, 13 May 2021 08:59:57 CDT
  • Don't Bug Me: Pest Control  Thu, 13 May 2021 08:57:25 CDT
  • New Southern Plains Perspective Blog On Offsetting the Carbon Footprint of Eating Beef   Thu, 13 May 2021 08:45:52 CDT
  • ALSS Secures $7M Series B Funding To Commercialize Novel Vaccine Delivery System For Poultry Industry  Thu, 13 May 2021 08:29:58 CDT
  • Gov. Stitt Enjoys Grilling Hamburgers Beneath Peta Billboard Calling Him a Meathead  Thu, 13 May 2021 08:49:37 CDT

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!

    Banc First OPSRC ORWA TPAOO TPAOO

    Search OklahomaFarmReport.com


       
       
    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.