Sen. John Boozman: Biden's tax increases – farmers, ranchers take unfair hit in American Families Plan

Why are the hardworking families that own and operate farm and ranch businesses being told to shoulder the burden for the American Families Plan’s massive $1.8 trillion price tag?

To pay for this plan, President Joe Biden has proposed changes to the tax code, including increasing capital gains tax rates, increasing taxes on appreciated assets like farmland and limiting the use of like-kind exchanges. The next generation of family farmers will face devastating consequences if the president has his way, as his proposed changes put the future of nearly 2 million family-owned farm operations at risk.    The family farms that color the landscape of rural America are the true building block for a better future. Agricultural farmland values have increased by an average of more than 360%, or nearly $2,500 per acre, since 1990. That means farmers and ranchers likely would face steep capital gains taxes upon the sale of an inherited asset if the step-up in basis is eliminated. Depending on the appreciation in the farmland, the size of the farm and the income of the heir, conservative estimates suggest these new proposed taxes could be in the thousands of dollars per acre and would take years to pay off.