Ag Groups Skeptical About American Families Plan Tax Funding Provisions

Ag groups voiced skepticism with President Biden’s American Families Plan announced this week, as well as the tax provisions that will fund the measures under the plan, many of which expand educational opportunities for students and provide support for families to facilitate capitalizing on those opportunities. The highest-profile tax change that will provide funding is an increase on capital gains taxes to 39.6% for anyone with income above $1 million/year. It also would require banks to report deposits similar to how 1099 income is documenting, possibly meaning deposits are all counted as “income” unless adequately proven otherwise. The STEP Act would also effectively eliminate stepped-up basis for transitioning assets to a successor with the intention of selling those assets. But federal officials said this week that provision won’t apply to family farms. See a full rundown of the plan’s provisions and proposed funding measures.