As the budget reconciliation package continues to be developed in Congress, there are still several questions that remain. The House Ways and Means Committee is considering their portion of the reconciliation bill this week, largely focusing on tax policy changes. Vice President of Washington Operations for the National Cotton Council, Reece Langley said the committee did not make changes to the stepped-up basis provisions. However, there are some provisions that are causing alarm for the ag industry.
“It seems like probably one of the most concerning issues for farms and ranches is that the estate tax exemption that currently is held at about $11.7 million per person through 2025. This measure would reduce that in half to about $6 million per person starting at the end of 2021. So, phasing down that exemption at the end of this year,” Langley explained. “So, still a lot of unanswered questions at this time, but the process is beginning to move forward this week.”
Listen to the radio report below.