• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Saturday, March 25, 2023
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home Opinion

Feenstra: Biden’s Hidden Tax Hikes Will Disproportionately Harm Rural America

Randy Feenstra: Iowa producers, who are the breadbasket to the world, should not be the ones footing the bill for the Democrats’ reckless spending agenda.

Randy FeenstrabyRandy Feenstra
August 13, 2021
in Opinion
Reading Time: 2 mins read

U.S. Rep. Randy Feenstra, R-Iowa, represents Iowa's 4th Congressional District.

Tucked away in President Biden and the Democrats’ multi-trillion dollar tax-and-spend proposal are tax hikes that will have an adverse impact on our agriculture community. For the past few months, I have been drawing attention to these tax hikes — including proposals to cap stepped-up basis and like-kind exchanges. As a former chair of the Iowa Senate Ways and Means Committee, I have seen the incredible economic potential that comes with cutting taxes. Unfortunately, Biden’s changes to stepped-up basis and like-kind exchanges would take us in the opposite direction. His plan would raise taxes on Iowa farmers and main street business owners, harming our rural economy at a time when we need to remain focused on recovery and revitalization.

RELATED POSTS

Sherman: Iowa can fight back against the Biden Administration’s attack on retirees and families

Hendrickson: Iowa’s fiscal foundation is solid

Feenstra: Delivering a strong Farm Bill for Iowa

Changing or repealing stepped-up basis is the equivalent of taking the death tax and slapping on a new coat of paint. If stepped-up basis provisions are changed or altogether eliminated, individuals would have to pay hefty capital gains taxes if, for example, a farmer passes away and wants to hand over their operation to a family member. This is one of the top concerns I hear about from folks as I travel the 4th District. At a recent Farm Bureau town hall I attended in Palo Alto County, I met a 6th generation farmer who is concerned he will not be able to take over the family farm due to Biden’s plan to change stepped-up basis.

In June, I challenged Office of Management and Budget (OMB) Acting Director Shalanda Young on the administration’s proposal to tax farm heirs. Less than two weeks later, a report published by Texas A&M’s Agriculture and Food Policy Center stated that eliminating stepped-up basis would impact up to 98 percent of farm transitions. Additionally, an analysis by the American Farm Bureau Federation and the American Soybean Association found tax payments from eliminating stepped-up basis would be significantly higher than cash rents; in fact, they found that tax obligations as a percent of cash rent could reach 476% in Iowa.

To make matters worse, Biden has also proposed limiting 1031 like-kind exchanges. Similar to stepped-up basis, like-kind exchanges are important for farmers looking to retire and pass their property on to the next generation, for rural communities that benefit from incentives for economic investment and revitalization projects, and for small business owners who are looking to improve and expand their companies. Last week, I led 87 of my colleagues in sending a letter to the president urging him to back off his plan to cap like-kind exchanges. Doing so would slap another unnecessary burden on rural Iowans.

ADVERTISEMENT

President Biden and his administration are failing to recognize the negative effects their hidden tax hikes will have on the men and women who feed and fuel the world. Moving forward, they should work towards solutions that help family farmers transition operations and bolster investments in our rural communities — not create huge tax liabilities for our family farms and main street businesses.

Iowa producers, who are the breadbasket to the world, should not be the ones footing the bill for the Democrats’ reckless spending agenda.

Continue Reading
Tags: American Farm Bureau FederationAmerican Soybean Associationestate taxfederal spendingHouse DemocratsJoe BidenOffice of Management and BudgetRandy FeenstraShalanda Young
ShareTweetShare
ADVERTISEMENT
Previous Post

Naig Says Iowa’s Crops are Weathering Drought

Next Post

Four Counties Saw the Lion’s Share of Iowa’s Population Growth

Randy Feenstra

Randy Feenstra

Randy Feenstra was born and raised in Hull, Iowa, where he has served as City Administrator, Sioux County Treasurer, and Iowa State Senator. He was first elected to Congress to represent Iowa's 4th Congressional District in 2020.

Related Posts

corn field
Opinion

Feenstra: Delivering a strong Farm Bill for Iowa

March 22, 2023
Naig Announces $2.6 Million in Awards for Soil Health & Water Quality Projects
Opinion

Ernst: Biden’s WOTUS whiplash.

March 20, 2023
Bio Ethanol on the Way
Opinion

Feenstra: Defending Iowa’s rural energy production

March 15, 2023
Ernst Expresses Concern About Trump’s Upcoming Senate Impeachment Trial
Federal Government

During Sunshine Week, Ernst introduces bill to bring transperancy to taxpayer funding

March 14, 2023
people running during daytime
Opinion

Ernst: For our daughters.

March 13, 2023
President Joe Biden speaks at POET Bioprocessing in Menlo, Iowa.
Opinion

Ernst: Biden is trying to make your 401(k) broke and woke.

March 8, 2023
Next Post

Four Counties Saw the Lion's Share of Iowa's Population Growth

Cruz Endorses Nicole Hasso in Iowa’s 3rd Congressional District Race

Cruz Endorses Nicole Hasso in Iowa's 3rd Congressional District Race

Sign-Up For Our Daily Updates

Get The Iowa Torch right in your inbox!

Please wait...

Thank you for signing up!

Recommended Articles

Japanese Spiber, Inc. Expands Production to Clinton Through ADM Partnership

Japanese Spiber, Inc. Expands Production to Clinton Through ADM Partnership

November 23, 2020
Hendrickson: Fiscal Conservatism Works

Hendrickson: Fiscal Conservatism Works

May 12, 2021

Hinson Raises $850K in 2nd Quarter of 2021

July 2, 2021

Popular Stories

  • elderly couple walking on a flower field

    Sherman: Iowa can fight back against the Biden Administration’s attack on retirees and families

    0 shares
    Share 0 Tweet 0
  • School restroom bill heads to Reynolds’ desk

    0 shares
    Share 0 Tweet 0
  • Ernst: Biden’s WOTUS whiplash.

    0 shares
    Share 0 Tweet 0
  • Horn: It’s time for employers get serious about Iowa’s untapped workforce

    0 shares
    Share 0 Tweet 0
  • Reynolds signs two bills addressing transgender children

    0 shares
    Share 0 Tweet 0

The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government
  • Uncategorized
  • Uncategorized

Newsletter

Please wait...

Thank you for signing up!

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.