How AmericanHort Is Tackling Tax Increase Debates on Capitol Hill
September 2, 2021 Congress will return this month with plenty on its schedule, as votes loom on the bipartisan infrastructure bill, keeping the government open, and a likely debt ceiling increase. In addition, House Democrats have set deadlines on drafting the $3.5 trillion reconciliation bill.
Lawmakers in the House briefly returned the week of August 23 to set the table for September, with Democrats passing a budget resolution for the reconciliation bill to officially begin the drafting process and assuaged moderate Democrats by setting a deadline for a vote on the infrastructure bill. The bipartisan infrastructure bill, drafted in the Senate and passed by a 69-30 margin, is due to get a vote in the House by September 27.
There are also must-pass items this month, such as the need to fund the government past the end of the fiscal year on September 30. This will likely be done through a continuing resolution. Congress will also need to raise the debt ceiling, as the Treasury Department has signaled that September is the likely time where the federal borrowing limit would need to be raised. Keep in mind that Congress is only scheduled to be in session for around 10 days, likely leading to lots of activity behind the scenes.
Of increasing concern to those in agriculture are the potential tax increases that will be used for the reconciliation bill. Through the reconciliation process, there is a statutory pay-as-you go requirement, which makes it tricky for big spending measures to generate the money to pay for them. Congressional Democrats are currently mulling over various ways to pay for this legislation.
Throughout the legislative session in 2021, AmericanHort has been coordinating with other associations in agriculture to defend key tax provisions that could potentially be altered to pay for these legislative priorities. These key tax provisions include the step up in basis for inherited assets, 1031 like kind exchanges, and the 199A tax deduction. AmericanHort has recently set up an action alert to let our industry’s voices heard and remind lawmakers to steer clear of these provisions.
Defending and advocating for the importance of these provisions will also be a key theme at the AmericanHort Impact Washington Summit being held Sept. 20-22 in Washington, DC. These early fall dates are well-timed, putting attendees right in the thick of legislative action. For more information and to register today, visit AmericanHort.org/Impact. If you can’t make it to the event, be sure to take action to defend these key tax provisions.
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