House Agriculture Chairman David Scott, D-Ga., said on June 2 that he opposes President Joe Biden‘s plan to increase death taxes.
Biden wants to almost double the capital-gains tax on inherited property, a proposal Scott called a nonstarter. Even with built-in deferrals for farms and ranches that pass from generation to generation.
“Any increase in inheritance tax for those taking over farm land is untenable and will further strain a farm economy that is just now beginning to recover from the strain of the pandemic,” Scott said.
And thirteen farm-district Democrats, led by Cindy Axne, D-Iowa and Jim Costa, D-Calif., wrote a letter to the party’s leadership. They demanded “full exemptions for these family farms and small businesses that are critical to our communities.”
This new capital-gains tax would apply to inherited property valued at $1 million or more per person. The Treasury Department said the hike would yield $322.5 billion over 10 years. That’s a measly $32.25 billion per year. Compare this to the FY 2021 budget of $5.8 trillion dollars.
Biden wants to increase corporate and capital-gains tax rates to partially fund his $1.8 trillion proposal. It’s for taxpayer-funded paid leave and babysitting via subsidized day-care.
These tax hikes aren’t about a balanced budget, they’re about petty politics. They’re about hurting small business owners, most who voted for President Trump.
On the bright side, a good number of House Democrats can read the political tea leaves. They know Biden isn’t very popular among Republican and unaffiliated voters. And they don’t want to tick off these folks in their districts. Or else they may be out of a job come January 2023.