UPDATED 10:38 AM PT – Wednesday, June 30, 2021
Republicans in Congress are slamming Joe Biden’s proposed death tax by calling it a terrible deal for Americans. During a roundtable discussion on Tuesday, Republicans on the House Ways and Meanings Committee bashed the provision in Biden’s American Families Plan by calling it a “supercharged death tax.”
Ranking committee member Kevin Brady (R-Texas) said the new tax would throw American farms into disarray as well as kill jobs across the country.
“On local farms and businesses, will cost 1 million American jobs over the next 12 years,” stated the Texas lawmaker. “This tax hike will also slash paychecks for workers, while shrinking our economy by $100 billion over the next decade.”
As a component of the American Families Plan, Biden’s proposed tax would force farmers to pay capital gains of 40 percent on land inherited that could have been in their family for several generations in addition to the current 40 percent tax on the remaining estate.
According to congressman Adrian Smith (R-Neb.), the Democrat-led death tax would negatively impact almost every family owned business in America.
“They proposed doubling the capital gains rate at nearly 40 percent in the name of so-called fairness,” he noted. “Rather than prioritizing economic growth or even revenue.”
Repealing stepped-up basis would hurt family businesses at the worst possible time. Today @RepKevinBrady & I led a @WaysandMeansGOP meeting to hear farm and ranch concerns. Don Batie, a farmer from #NE03, shared his story as a panelist in today’s meeting. https://t.co/aWGtTlGOaa pic.twitter.com/yrKtLgxtO7
— Rep. Adrian Smith (@RepAdrianSmith) June 29, 2021
A cattle rancher from the Texas panhandle, Pat McDowell, testified and told them how Biden’s proposal would hurt him and family business owners like him across the country.
“The Biden administration’s proposal totally undermines our estate plan,” said the rancher. “This plan punishes our family just because we want the next generation to be able to make a living in agriculture.”
Brady accused the Biden administration of pulling a bait-and-switch on the American people. He claimed Biden never cared about building roads and bridges, only raising taxes on American families.
According to the Tax Foundation Organization, combining the death tax and capital gains tax as well as repealing a tax benefit known as Step-up in Basis, Americans could be hit with an effective marginal tax rate of 61 percent under the Biden proposal.