Minnesota farmer concerned Biden’s capital gains tax proposal could be death blow for family farms
The Biden Administration is reportedly considering raising the capital gains tax nearly 40 percent to what would be the highest rate in U.S. history.
Wanda Patsche, a crop and livestock farmer from Welcome in south-central Minnesota, tells Brownfield it’s her understanding the proposed tax hike would NOT include a stepped-up basis.
“I have a problem with that because we feel like we haven’t farmed our whole life here and really put in all our blood, sweat and tears (because) we wanted to have this for our kids, and then all of a sudden 40 percent or close to that goes to the government.”
Using the example of 160 acres of farmland purchased in 1984 for $1,500 an acre being inherited today at a value of $8,000 an acre, she says the total amount of tax due under Biden’s proposal would be more than $443,000.
“And I’m just really concerned that if all of these proposals go through, I don’t know where the family farm is going to end up. Because how can you continue a family farm if you have those high of capital rate gain taxes that you have to pay?”
Patsche encourages farmers to reach out to their elected officials if they are concerned about higher taxes.
She says it will be good if Tom Vilsack is confirmed as U.S. Ag Secretary because Patsche believes Vilsack understands production agriculture and would be a strong voice for farmers within the Biden Administration.