This week, the House of Representatives began a series of Committee mark-ups to consider legislative proposals, which include crippling tax increases to the overall budget reconciliation process to address the recently passed $3.5 trillion reconciliation plan under the Biden Administration’s “Build Back Better” agenda.
Plains Cotton Growers, Inc. (PCG), along with the National Cotton Council and Southwest Council of Agribusiness, joined over 330 federal and state agricultural organizations in a letter (https://bit.ly/2X3sjFy) to Congress vehemently opposing tax proposals that would devastate the agriculture industry and Texas economy if realized.
Highlights from the letter include:
• Requesting Congress not alter or eliminate long-standing tax code provisions that are fundamental to the financial health of production agriculture and the businesses that supply its inputs, transport its products, market its commodities, and support the vibrancy of U.S. agriculture industry
• Remaining ardently opposed to repealing the step-up in basis and to imposing new capital gains taxes on family farms and ranches when there is a death in the family
• Firmly believing the current federal estate tax code provisions must be maintained Opposing elimination or reduction of Sec. 199A or like-kind exchange which will result in a massive tax increase for farmers and ranchers at a time when they can ill afford it
“Throughout the last several years, production agriculture has withstood times of low prices, disaster related events due to mother nature, and more recently challenges brought on during the COVID-19 pandemic.” PCG CEO Kody Bessent said. “At a time when the economy is beginning to recover following the pandemic, Congress should not recklessly raise taxes or alter longterm risk management tools on family farms and businesses– many of which have taken a lifetime to build.”
As the budget reconciliation process proceeds in Congress, PCG will continue to work with the Aggie Coalition and Members of Congress to preserve federal tax provisions that have long-supported production agriculture.