Joe Biden promised to be a President for all Americans.
But he’s waging war on the parts of the country that didn’t vote for him.
And now a leading Republican put Joe Biden on notice for this move to crush rural Americans.
President Joe Biden released his bloated $7.3 trillion budget proposal for 2025.
It included a major increase in federal spending, with a bevy of tax hikes to pay for it.
Tucked away in the budget is a tax hike that would decimate American family farms and small businesses.
Rural Republicans cry foul on Biden’s budget
Representative Randy Feenstra (R-IA) – a member of the House Agriculture Committee – and over a dozen House Republicans who represent rural districts sent a letter to Joe Biden slamming his attempt to hike the capital gains tax in his budget proposal.
“We write today on behalf of Americans across this nation that own and operate small businesses and family farms, and the employees and customers they serve. Since the founding of this nation, America’s farmers and small businesses have been the backbone of our economy. Unfortunately, revenue proposals outlined in your FY2025 Budget Request will significantly burden these hardworking Americans,” the letter stated.
The Republican lawmakers pointed out that his proposed budget would add new taxes that hammer family farms that pass on from one generation to the next.
“Small business owners who want to pass on their businesses to their children would be exposed to devastating new tax increases in capital gains taxes, a new transfer tax on appreciated assets passed upon death, and restricting like-kind exchanges, amongst other tax increases, that threaten their continued operation,” the letter added.
Proposed change to tax code threatens family farms
Feenstra and the Republican lawmakers noted the “like-kind exchange” rule in the tax code would be eliminated.
The like-kind exchange rule allows real estate owners to avoid paying capital gains taxes at the time of a sale if they reinvest their proceeds into a similar property.
“For the agricultural community, a cap on like-kind exchanges would limit farmers’ ability to combine acreage, purchase more productive land, or mitigate environmental impacts, all of which help improve their operations and strengthen the nation’s food supply,” the letter explained.
Removing the like-kind exchange could force small family farmers to sell off their properties in order to pay the tax bill.
“Further, capping like-kind exchanges could make it more difficult to restructure businesses so that young or beginning farmers can join operations,” the letter continued. “Such a limit could end up preventing retiring farmers from using like-kind exchanges to exchange their farm or ranch for other real estate, allowing for the next generation to take over without being forced to sell off assets to pay a huge tax bill to Washington.”
The Republican lawmakers told Biden that his proposed budget would devastate family farms.
“We urge you not to damage the livelihoods of farmers and small businesses everywhere,” the letter read. “Instead, we look forward to working with you to keep the American economy working for the American people. We are committed to supporting small business owners and the millions of small family farms around the nation as they work hard to make a living.”
Rural America voted overwhelmingly against Joe Biden in the 2020 election.
He’s now trying to punish them with his proposed budget.
This budget is going nowhere in a divided Congress, but it offers a blueprint of his potential second term if Democrats regain control of the House.
