Economic Research Report No. (ERR-328) 59 pp
An Analysis of the Effect of Sunsetting Tax Provisions for Family Farm Households
Two recent laws enacted temporary provisions to the Federal tax code: the American Rescue Plan Act (ARPA) and the Tax Cuts and Jobs Act (TCJA). The authors of this report assess the impact of these sunsetting tax provisions on tax liabilities for farm households. Using data from the USDA, Agricultural Resource Management Survey (2018–21) and the USDA, Economic Research Service’s Federal income tax and estate tax models, the authors estimate that the expiration of the temporary provisions of the ARPA and TCJA would increase farm households’ Federal income tax liabilities by $8.9 billion and estate tax liabilities by $647 million in the year following expiration.
Keywords: Income tax, estate tax, farm households, Tax Cuts and Jobs Act (TCJA), American Rescue Plan Act (ARPA), tax provisions, underserved farms, farm typology
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