LEGISLATIVE UPDATES from AmericanHort
HOW POLITICS ARE AFFECTING YOUR BUSINESS RIGHT NOW Feeling the Heat
By Craig Regelbrugge The Occupational Safety and Health Administration (OSHA) has announced a new “national emphasis program” for heat illness in outdoor and indoor occupations in targeted industries. This means that OSHA can now launch heat-related inspections on high-risk worksites before workers suffer preventable injuries, illnesses, or fatalities. Agriculture and landscaping are both included in the list of targeted industries. The National Emphasis Program is in addition to expected future regulation relating to heat illness; earlier this year OSHA sought public comment on the topic via an advance notice of proposed rulemaking. LEARN MORE AT https://www.dol.gov/newsroom/releases/osha/ osha20220412-0 •
AmericanHort Pushes Back Against Tax Hikes By Evan Lee
AmericanHort, joined by our partners in the Tax Aggie Coalition, sent a letter this week to Congress’ tax writing committees, warning of harmful tax increases proposed by President Biden in his Fiscal Year 2023 budget request. In total, the President proposes to raise tax revenues by $2.5 trillion above current law over the next ten years through a combination of new taxes and sunset of the 2017 Tax Cuts and Jobs Act – all without ever balancing the budget. An analysis by our partners at K·Coe Isom identified the most significant changes affecting agriculture operations: 1. Income, estate, and gift tax rules for grantor trusts 1. Grantor retained annuity trust changes 2. Changes to treatment of sales of property by a grantor to a grantor trust 3. Change to the gift tax treatment of income taxes paid by a grantor 2. Changes to valuation rules on promissory notes between related parties 3. Extending estate tax lien from 10 years to the end of any deferral or installment period 4. Requiring trust information returns for trusts with assets over $300,000 or over $10,000 in income 5. Changes to the Generation Skipping Transfer tax – increasing the scope and number of trusts to which the tax applies 6. Limitation on transactions to which partnership basis step-up adjustments under Section 754 apply 7. Assessing capital gains taxes upon gift or death transfers, including transfers to trusts 8. Limiting income tax deferral on like-kind exchanges to $500,000 per taxpayer The budget isn’t all bleak, however. It does boost the limitation on the special-use valuation from $1.23 million to $11.7 million, allowing farmers and ranchers to significantly roll back the value of land subject to the estate tax. Tax-watchers will recall that Congressional Democrats put forward this idea last year to soften the blow of their proposal to halve the estate tax asset exemption from $11.18 million to $5.8 million. While the revenue raisers proposed by the President are cause for vigilance by advocates, it’s noteworthy that Congressional Democrats failed to enact dramatic tax increases last year during Build Back Better negotiations. A deteriorating economic outlook and worsening political environment for the President mean his new tax increases too are likely dead-on-arrival in Congress. • 8 • VNLA News • Summer 2022
DHS Vaccination Requirements for Land Border Crossers By Sara Neagu-Reed
The Department of Homeland Security announced that the mandate for proof of full vaccination for nonimmigrants transiting into the United States will be extended without a specified expiration date and without an exemption for essential workers. The requirements apply to noncitizens who are neither U.S. nationals nor permanent residents (including H-2A and H-2B workers). During the height of the pandemic, essential workers like agricultural workers or truck drivers were exempt from this requirement. That is not the case under this extended mandate and all essential workers must comply. All non-U.S. travelers seeking to enter the United States through a land port of entry or ferry terminal, whether for non-essential or essential reasons must be prepared to: Verbally attest to their COVID-19 vaccination status; Present a valid passport or Trusted Traveler Program Card; Provide proof of a CDC -recognized COVID-19 vaccination C ome prepared to share any other relevant documents requested by the Customs and Border Protection officers during the inbound border inspection We have heard of few problems with the vaccination requirement for land border crossers; however, if you are experiencing any issues related to this proclamation, please reach out so that our staff team may connect you with the appropriate resources. FOR MORE INFORMATION, VISIT https://www.cdc.gov/coronavirus/ 2019-ncov/vaccines/people-vaccinated-abroad.html •
Agriculture Secretary Carries Budget to Capitol Hill By Evan Lee
U.S. Department of Agriculture Secretary Tom Vilsack will appear before the House Appropriations Subcommittee on Agriculture to defend the President’s fiscal year 2023 budget request. Overall, the President’s budget calls for a twelve percent increase for USDA. At the April 28 hearing, Mr. Vilsack can expect Republicans will question the budget’s $1.8 billion for climate change, including new funding for climate research hubs and greenhouse gas monitoring. Both sides of the dais, however, will likely applaud the Administration’s call for $600 million in rural broadband deployment, a $22 million increase over the current fiscal year. AmericanHort will watch for reaction to proposed roughly $200 million increase for the Agricultural Research Service, $2 million of which we’re seeking for the Floriculture and Nursery Research Initiative. As we recently reported, the Administration’s enhanced endangered species reviews for new pesticide registrations underscores the importance of USDA’s IR-4 program, which supports data collection necessary for bringing new crop protection tools to market. The President’s budget proposes to nearly double funding for IR-4 this fiscal year. Following the budget hearings, AmericanHort will continue its advocacy in support of these key research programs for our industry. To date, our grassroots advocacy effort has touched dozens of Senate and House lawmakers. Looking ahead, the Chairwoman of the House Appropriations Committee plans to introduce and hold House votes on all twelve spending bills before the August recess. The Senate traditionally moves at a more deliberate pace through the budget cycle, often waiting to release its versions of the bills until agreement is reached between congressional leaders on overall spending levels and contentious policy riders. Although the process of wrangling over spending bills is underway on-schedule, expect the final agreement to come well after the midterm elections. •
