Rural Republicans criticize Biden budget for proposed tax hikes on farms and businesses

Last Updated on March 22, 2024 by Robert C. Hoopes

House Republicans led by Rep. Randy Feenstra, are criticizing President Biden’s fiscal 2025 budget proposal, arguing that it could impose additional economic strain on American farmers and family-owned businesses. The Republicans specifically take issue with the proposed increases to capital gains taxes and penalties paid by investors or owners when selling assets.

They are concerned about the impact of the proposed capital gains tax, new transfer tax on appreciated assets passed upon death, and restrictions on like-kind exchanges. One provision they are particularly critical of is the closure of the “like-kind exchange” loophole, which allows real estate owners and investors to defer paying capital gains tax.

The Republicans believe that capping like-kind exchanges could harm the agricultural community by limiting farmers’ ability to expand and improve operations. They argue that Biden’s budget could ultimately damage the U.S. farming industry and the rural communities that rely on it.

The Republicans are urging President Biden not to jeopardize the livelihoods of farmers and small businesses. They express a willingness to collaborate in order to support small business owners and family farms. However, the White House has not responded to requests for comment from Fox Business.

The criticism from House Republicans highlights the ongoing debate over the potential impact of President Biden’s budget proposal on American farmers and family-owned businesses. The outcome of this debate could have significant implications for the future of these vital sectors of the U.S. economy.