From: Senator Jerry Moran
<Do_Not_Reply@moran.senate.gov>
Sent: Thursday, August 19, 2021 10:49 AM
To: mcre13@gmail.com
Subject: Re: Your Message
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-----Original Message-----
To: WEBMAIL@MORAN-IQ.SENATE.GOV
From: mcre13@gmail.com
Subject: Email from Website
As a concerned constituent, I am writing in strong opposition to the proposed
limit on Section 1031 like-kind exchanges.
President Bidens American Families Plan proposes to eliminate like-kind
exchange treatment for gains greater than $500,000. Since 1921, Section 1031
like-kind exchanges have been a powerful wealth-building tool for middle-class
Americans and have had a tremendous positive on our economy. Particularly, as
we recover from the economic impacts of the COVID-19 pandemic, Section 1031
like-kind exchanges can play a critical role in the economic recovery and
growth of our local community. As I write to you today, I want to emphasize how
like-kind exchanges fuel reinvestment in our local communities and create
financial security for individual Americans.
Section 1031 like-kind exchanges will accelerate our economic recovery from the
pandemic by helping small- and minority-owned businesses grow, and by
preventing real properties from languishing as a result of underutilization and
underinvestment. This economic tool also generates much-needed tax revenue for
states and local communities. Additionally, a significant number of Section
1031 like-kind exchanges involve improvements to workforce housing.
In addition, Section 1031 like-kind exchanges have proven to be an engine for
job growth. New research by Ernst & Young estimates that like-kind
exchanges support 568,000 jobs, generating over $55 billion of annual value
added, including $27.5 billion of labor income. Jobs supported by 1031
exchanges include everything from realtors and appraisers, to electricians,
carpenters, plumbers, contractors, masons, and building material suppliers.
For many Americans, Section 1031 like-kind exchanges are a principal tool for
retirement savings. As the burden of retirement planning and savings shift to
individual investors, like-kind exchanges allow small business owners and the
self-employed to deploy reinvested proceeds from a like-kind exchange into
institutionally managed, passive interests in real estate that provides a
critical source of long-term retirement income.
Finally, Section 1031 like-kind exchanges support the health of U.S. commercial
real estate and real estate markets, and the preservation of family-owned
farms, ranches, and forestland. They also increase the supply of affordable rental
housing by filling gaps in housing supply not covered by other incentives.
Section 1031 is grounded in sound policy that generates broad economic and
environmental benefits that serve the public interest. Section 1031 should be
protected. Any proposal to restrict or eliminate like-kind exchanges should be
rejected by Congress.
Please oppose any changes to Section 1031 like-kind exchanges.
