While it is still very early into the 117th Congress, it's not too early to consider what legislative matters may emerge in the new political environment of Congress. Included in the areas of interest for agriculture is tax policy. The 2020 elections brought about a new democratic administration along with democratic majorities in the House and Senate, albeit narrow majorities (50-50 Senate; 221-211 (3 vacant) House).
Given these dynamics, it's important to examine the tax policy concepts developed by President Biden's campaign to gain an understanding of potential tax policies might be pursued in the 117th Congress. Many of candidate Biden's tax proposals will struggle to advance at all even in a democratic majority Congress, however nothing can be taken for granted. So, it's important to know and understand candidate Biden's tax proposals in order to appropriately respond to future tax legislation that may emerge.
One challenge facing those wanting to retain current tax policies or further reduce taxes is the expanding budget deficit and entitlement costs. Another is the general concerns that come with democrats holding majorities in both the House and Senate while also in charge of the executive branch. Like other policy priorities of the Biden administration, there appears to be a theme of overturning actions taken by former President Trump, and many of the tax policies included in the 2017 Tax Cut and Jobs Act are certainly not exempt. In addition, the theme of "social justice" that is common among democrats plays into tax policy as much as any other government policies.
For all of these reasons, it's important for the agriculture industry to remain attentive to tax policy and understand the ramifications of various tax policy proposals that may emerge.
Below are a few recent opinion pieces written regarding the tax plans offered by candidate Biden and the potential impact they might have on the agriculture industry, particularly family farm operations. Also included below are links to the House Ways and Means Committee and the Senate Finance Committee, which would be the committees where tax policy will be crafted and debated in Congress.
More below:
https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2021/02/05/biden-tax-plan
https://www.farmprogress.com/farm-policy/how-will-candidates-tax-plans-affect-farmers
https://taxfoundation.org/joe-biden-tax-plan-2020/