By Spencer Tuma, Missouri Farm Bureau’s Director of National Legislative Programs
On January 20, a new administration took over in Washington, D.C., as Donald J. Trump assumed the role of President for the second time. Just two weeks prior, Congress filled its seats with members elected in November. That means the business of government is at full strength to work for the American people. One of the biggest issues the White House and Congress will tackle centers around everyone’s favorite topic: the tax code.
Missouri Farm Bureau (MOFB) has long supported tax policies that facilitate the generational transfer of family farms. To achieve this, MOFB supports the complete elimination of the federal estate tax (often referred to as the “Death Tax”) and the permanent continuation of stepped-up basis. Stepped-up basis, a long-standing provision, offers a fresh start for young and beginning farmers inheriting family property. While full repeal of the estate tax has not yet been achieved, the 2017 Tax Cuts and Jobs Act doubled the exemption level, shielding many family farms from the federal estate tax. This was a significant step towards our goal, but MOFB continues to work towards complete elimination.
As has been the case with many previous tax fights, we expect criticism to be levied against these critical policies by lawmakers who do not understand the real-world impacts that changing these policies would have on farm families.
MOFB will staunchly advocate for extension of many of the other tax code reforms contained in the Tax Cuts and Jobs Act, including Section 199A continuation, lowering the capital gains tax rate and business deductions, and other provisions key to the agriculture industry. These provisions are set to expire in 2025 and require Congressional approval to remain in place to continue providing essential relief to farm and ranch families.
Jason Smith, Missouri’s 8th District representative in the U.S. House of Representatives, is serving as chairman of the powerful House Committee on Ways and Means for the second time. Smith is in a key position, as the committee will be responsible for drafting the legislation that will be considered this year.
Congress is likely to use a legislative maneuver known as budget reconciliation to move this legislation across the finish line this year. For those who would rather fill their day with activities other than watching C-SPAN, this means that there must only be a simple majority approval of this bill, rather than the traditional 60-vote threshold to pass the U.S. Senate. Time will tell if Congress ultimately chooses to pass tax reform as a standalone bill or will combine it with other priorities to move as one bill.
Those in Washington, D.C., have their hands full, but with two branches of the government having campaigned heavily on less red tape and greater efficiency, Americans can expect swift movement in this space in the months ahead.
Missouri Farm Bureau is the state’s largest farm organization with a presence in every county throughout the state. Learn more on our website or follow @MissouriFarmBureau on Facebook, @MOFarmBureau on X or @MOFarmBureau on Instagram.