The elimination of stepped-up basis is being considered as an option for the new spending bill. American Farm Bureau Federation Economist Veronica Nigh says this decision would hurt the economy. “A study that we had commissioned by Ernst and Young found that overall, in the economy, the elimination of stepped-up basis would lead to a decline of 80,000 jobs each year for ten years. It would also cause a $10 billion decrease in GDP each year.” The elimination of stepped-up basis would increase taxes. Nigh says that would make it more difficult for farmers to invest in farmland or equipment.
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