House Dems drop changes to stepped-up basis in reconciliation package

House Democrats today dropped all proposals for changes to stepped-up basis in their package of tax hikes on corporations and the wealthy in their reconciliation spending bill. The issue is hugely important in farm country – and lawmakers on both sides of the aisle – who say it would have devastated farms.

In an interview with Brownfield, just before the news it would be eliminated, Ag Secretary Vilsack told Brownfield 98% of farms would not have been impacted, “Because either the farm is going to be owned and operated by a family member going forward OR if a portion of the farm is being sold, it’s being sold at a gain that’s less than the exemptions that are currently in the bill.”

Vilsack admitted the issue is complicated and there is a lot of misunderstanding about it. Having a lack of trust at this early stage in the process, he said, was “fair.”

Congresswoman Angie Craig of Minnesota, a Democrat, applauded the exclusion of any stepped-up basis changes that would negatively impact family farmers, saying she warned House leadership earlier this year not to make any such changes.

Outline from the House Ways and Means Committee as reported by CNBC.

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