Home > News > Nearly All Farms Won’t be Impacted by Stepped-Up Basis, Vilsack Says; Economists Disagree

Stack of 100 dollar billsAfter much scrutiny toward the Biden Administration for the changes to the Capital Gains Tax outlined in the “Build Back Better” plan, U.S. Agriculture Secretary Tom Vilsack has defended the legislation, saying nearly 99% of all U.S. farms won’t be impacted. However, a study done by Texas A&M University’s Agricultural & Food Policy Center showed vastly different findings, with 92 of 94 farms in the study showing significant tax liability. The difference, Vilsack says, is due to not including exemption levels for those producers. Paul Neiffer, a CPA, says, “USDA needs to parse their database to only include farmers who make a living from farming.” Read more on the stepped-up basis here.

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