With new leadership comes new questions. We know that tax policy was going to be something that the incoming Biden Administration was going to try and change. Many times, tax code changes that are intended to bring in more revenue from high-income citizens and businesses also bring difficulties for some family farms. The American Farm Bureau Federation (AFBF) looked at the possibilities during their annual convention.
Pat Wolff is the Senior Director of Congressional Relations with the AFBF. She says there are going to be changes when the Biden Administration takes over. She is expecting to see big tax legislation inside the first six months of his Presidency.
However, even though the Democrats control the White House and both Congressional chambers, do not expect tax code changes to just be railroaded through.
AFBF is most concerned about what can happen with estate and capital gains taxes. It?s these taxes that put the most burden on family farms because they are considered ?asset rich and cash poor.?
There could even be a ?double-whammy? on taxes when land changes hands after a death.
Wolff says she also expects to see more tax credits for alternative energy platforms like solar and wind. Also, more incentives for biofuels too.
