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House Considers Legislation to Impose Surcharge on Land Purchased by “Foreign Adversaries”

06/18/2023

In a further example of “feel good” legislation designed to appeal to local constituents, the House Ways and Means Committee voted to impose a 60 percent excise tax on purchases of U. S. farmland by nations regarded as “foreign adversaries” comprising China, The Russian Federation, Iran, North Korea, Cuba and Venezuela.  In reality, ownership of U. S. farmland by these nations is infinitesimal. 

 

The legality of the proposed legislation is questionable but will probably not be subject to litigation since it is doubtful whether any of the named nations has any interest or incentive to purchase U. S. farmland.

 

Of greater significance is the fact that this proposed legislation that will not elicit opposition was bundled into a proposal to eliminate a number of incentives incorporated into existing legislation. These relate to climate and health and are considered unpalatable to conservative legislators and their supporters irrespective of justification based on potential future benefits.