Republican leaders of the Agriculture committees are highlighting a new study that states Democrats’ proposed legislation would devastate the next generation of family farmers and ranchers.
 
House Committee on Agriculture ranking member Glenn ‘GT’ Thompson, R-Pa., and Senate Agriculture Committee ranking member Sen. John Boozman, R-Ark., requested the Agricultural and Food Policy Center (AFPC) at Texas A&M University to analyze two pieces of legislation introduced in the Senate that would change the tax liabilities of family members when farm and ranch estates are passed from generation to generation.
 
AFPC’s study analyzed two bills: the Sensible Taxation and Equity Promotion (STEP) Act, which proposes to eliminate stepped-up basis upon death of the owner, and the For the 99.5 Percent Act, which would decrease the estate tax exemption.
 
According to the study, if the STEP Act were to be implemented, 92 of AFPC’s 94 representative farms would be impacted with an average additional tax liability of more than $720,000 per farm. Together, the two bills would raise taxes an average of $1.4 million on 98% of AFPC’s representative farms, said AFPC.
 
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