Emmer Co-Authors Letter to Biden Concerning Capital Gains Tax Increase’s Impact on Farmers

(KNSI) – Minnesota’s Sixth District Congressman Tom Emmer and three other U.S. Representatives have sent a letter to President Joe Biden urging him to reconsider the proposed capital gains tax increase that would impact farmers.

Capital gains tax is applied to the sale of assets that have increased in value over time, like land.

Emmer, along with Republican Representatives Jim Hagedorn, Michelle Fischbach and Pete Stauber, say the boosted tax would make it harder for farmers to keep their farm assets in the family and make upgrades.

“Increasing the capital gains tax on the sale of buildings, livestock, and farmland make it extremely difficult for producers to adapt, upgrade, and ultimately pass along their operations to future generations of farmers,” they write. “Production agriculture requires significant long-term investments in land and infrastructure, and this tax increase will have a disproportionate impact on the farm and ranch community.”

The four Minnesota lawmakers cite an American Farm Bureau Federation report that says 40 percent of farm families reported capital gains or losses in 2018 compared to 14 percent of average taxpayers.

“In order to support family farms and the success of our agriculture community, we ask that you reconsider your plan to increase the capital gains tax and support the continuation of a stepped-up basis. After we have relied so heavily on them, now our farmers are relying on policies that support them,” they write.

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