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Feenstra Leads Letter to President Biden Opposing His Proposed Tax Hikes on Family Farms and Small Businesses

U.S. Rep. Randy Feenstra (R-Hull) led a letter to President Biden opposing his proposed tax hikes on family farms and small businesses.

“President Biden’s $7.3-trillion budget for Fiscal Year 2025 proposes tax hikes that would crush our family farms and small businesses. This bloated budget includes a new tax on the transfer of agricultural and business assets, a devastating cap on like-kind exchanges, and a combined capital gains and dividend tax rate more than double that of China. These economic policies will stifle economic growth in our rural communities, prevent young producers and entrepreneurs from continuing the family tradition, and sadly give family farms and small businesses no other choice but to close for good,” said Rep. Feenstra. “That’s why, in response to President Biden’s reckless budget, I led a letter to the White House urging the President to abandon these crippling tax hikes on the backbone of our economy – our nation’s farmers and small business owners. To grow our economy, we must end wasteful government spending, balance our budget, and keep taxes low for our farmers, producers, business owners, and innovators.”

In opening their letter, the lawmakers explained that “We write today on behalf of Americans across this nation that own and operate small businesses and family farms, and the employees and customers they serve. Since the founding of this nation, America’s farmers and small businesses have been the backbone of our economy. Unfortunately, revenue proposals outlined in your FY2025 Budget Request will significantly burden these hardworking Americans. This is the third year in a row in which your Administration has sought to fuel its reckless spending agenda on the backs of family farms and small businesses.”

“In January, the Death Tax Repeal Act was introduced in the House of Representatives with 161 original cosponsors, recognizing both the economic damage the Death Tax causes and the simple fact that treating death as a taxable event is inherently wrong. In contrast, your budget proposals related to like-kind exchanges, stepped-up basis, capitals gains, and estate taxes would raise hundreds of billions of dollars of taxes on the backs of America’s farmers and small businesses to help pay your massive $7.3 trillion dollar budget. By proposing this transfer tax and letting the enhanced estate tax exemption level expire, you are essentially turning the capital gains tax into a Double Death Tax. With so much of our nation’s agricultural economy dependent on the transferring of family farms to the next generation, it is critical that we make this transition as easy and affordable as possible. Your budget proposals do precisely the opposite, and our family farms, agricultural communities, and the country as a whole will bear the consequences,” the lawmakers added.

The full letter can be found HERE.

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