Biden’s proposed inheritance tax changes would destroy small American farmers: Norquist
Small American family farms could be destroyed if Congress passes Biden’s proposed tax change plan, said Grover Norquist, president and founder of Americans for Tax Reform. Nestled in the Biden Families’ U.S. plan is the elimination of a basic tax benefit on valued assets like farms.
“There is the normal inheritance tax that Democrats want to increase and want to end the base increase, which was introduced a hundred years ago to protect family farms from being crushed in every generation.” , Norquist said. “The Democrats actually took that protection away in 1976, but put it back in 1980 because it was impractical. Biden saw the elimination of the base increase fail, and he decided to get rid of it. again. It’s a very bad decision. ”
Norquist spoke to Michelle Makori, editor-in-chief of Kitco News, at FreedomFest 2021 in Rapid City, South Dakota.
Under current tax law, a farm or business goes through the family without capital gains tax. The value of it is “increased” or adjusted to its current value, and the heirs pay a capital gain only if they later sell it at a higher valuation.
âThe increase in the base allows farms to continue to move in family businesses from generation to generation without being cut up each time due to the death of family members. They are protected family farms, and now they want to remove it, âNorquist explained. .
Another way the Biden administration is looking to help fund the U.S. Family Plan is to nearly double the top capital gains tax rate from 23.8% to 43.4%.
âThat would be a very high capital gains tax rate, close to that of Jimmy Carter when things went wrong. By reference, the capital gains tax rate in China is 20%, so we would have more than double the capital gains tax rate compared to China, âNorquist pointed out.â In addition, there are a number of European countries that do not have capital gains tax. It would be very bad for the competitiveness of the United States, but that’s where Biden’s head lies. “
“This creates a real advantage for China and other countries that have more reasonable capital gains taxes and would put investment in the United States at a huge disadvantage,” Norquist added.
According to the Tax Foundation, the combined rate of the higher inheritance tax and the increased capital gains tax rate is the highest in nearly a century.
Norquist also spoke of reviving the idea of ââa carbon tax, which could help fund Biden’s infrastructure plan. A carbon tax is a charge imposed on the combustion of carbon-based fuels such as coal, oil and gas. Policymakers use the revenue from a carbon tax to offset these impacts, reduce taxes, reduce budget deficits, invest in clean energy and climate adaptation, according to the Tax Policy Center. A carbon tax would be a form of value added tax (VAT), commonly used in Europe.
“It’s a value added tax on the drive wheels. It’s the preparation to put a value added tax in the United States like most European countries have done,” Norquist explained. “It would generate so much money that you could have a European welfare state in the United States with a value added tax. It is important to defeat it.”
For more on Grover Norquist’s take on a carbon tax, please watch the full video above.
Follow Michelle Makori on Twitter: @Michelle Makori
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