Government Connection

Senator Thune (R-SD) Helps Protect Stepped-up Basis with Amendment in Framework of $3.5 Trillion Budget Reconciliation Bill

President Biden’s American Families Plan called for the elimination of the stepped-up basis tax provision to raise revenue for government spending. This would be devastating for many members of the cold chain industry, which is why GCCA launched a grassroots campaign in May calling on Members of Congress to protect the stepped-up basis tax provision. As a result, we are pleased to see the passage of Senator Thune’s amendment to the framework for the $3.5 trillion budget reconciliation bill. The amendment protects owners of generationally-owned businesses, farms, and ranches so that they may continue to transfer ownership or operations to family members or others based upon the same tax principles that existed when they began operations and under which they currently operate, including the full benefit of the stepped-up basis. Following Senator Thune’s amendment we saw Senators Cortez Masto, Tester, and Warnock offer a side-by-side amendment essentially carving out family businesses and farms from changes to stepped-up basis, an idea presented in the Administration’s American Families Plan. All 49 Senate Republicans in attendance held against the carve out amendment and notably Senator Sinema joined Republicans in opposing the carve out concept. The amendment was rejected 49-50. These encouraging results (non-binding budget votes) do not guarantee any policy outcomes for the future, but certainly help our cause in urging members to steer clear of using step up/cap gains at death as payfors. The fight will continue into fall as the tax committees scramble for revenue raisers to fund this reconciliation bill, so if you have not done so already, please take action and make your voice heard on this important issue!

August 12, 2021

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