A group of House Republicans representing rural America have voiced concerns over President Biden's fiscal 2025 budget proposal. Led by Rep. Randy Feenstra of Iowa, more than a dozen Republicans penned a letter to Biden, highlighting elements of the budget that they believe will impose additional economic strain on American farmers and family-owned businesses.
The lawmakers specifically criticized the proposed increases to capital gains taxes, which are levied on investors or owners when they sell an asset based on its accumulated value over time. They argued that these tax hikes could have detrimental effects on small business owners and farmers looking to pass on their businesses to the next generation.
One of the provisions in Biden's budget that drew criticism was the closure of the 'like-kind exchange' loophole, which allows real estate owners and investors to defer paying capital gains tax. The lawmakers contended that limiting like-kind exchanges could hinder farmers' ability to expand their operations, purchase more productive land, or facilitate generational transitions within family-owned farms.
The Republicans warned that the proposed budget measures could negatively impact the U.S. farming industry and the rural communities that depend on it. They urged Biden to reconsider the potential consequences of the tax increases on farmers and small businesses, emphasizing the importance of supporting these vital sectors of the economy.
While the White House did not provide a response to requests for comment on the matter, the Republican lawmakers expressed their commitment to working towards a solution that would safeguard the interests of small business owners and family farms across the nation.
