Partisan fires fuel over farm bill

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After Secretary of Agriculture Mike Johanns announced the President would veto the farm bill as it currently stands in the House, the Republican support crumbled too after learning of how funding increases would be paid. The House Ways and Means Committee stated Wednesday it would pay for the $4 billion increase in nutrition through "closing a loophole" or increasing taxes for foreign companies who do business in the United States. The House is expected to begin debate on the farm bill today.

House Agriculture Committee Republicans said they "feel deceived" by House Democrats insertion of a tax increase "despite prior promises by the Democratic Leadership to the contrary."

The tax provisions included would raise taxes on companies with U.S. subsidiaries. These companies are responsible for the employment of more than 5.1 million Americans. By raising taxes on foreign companies located in the U.S., these provisions could make the U.S. a less hospitable place to do business and drive jobs abroad, according to a statement from ranking member Bob Goodlatte, R-Va.

"After the Agriculture Committee passed a bipartisan bill, the bill was hijacked by forces outside of our control and the tax increase proposals were introduced without any input from the Republican members of the Committee. Despite repeated assurances that the $4 billion in offsets would not come from tax increases, here we are looking at tax increases as the 'funding mechanism' of choice employed by the Democratic Leadership. The House Agriculture Committee Republicans are united in our outrage at the inclusion of these tax provisions in what should be a bipartisan bill and the underhanded tactics employed by the Democratic Leadership to bypass this Committee and include these provisions in the bill.

"Earlier this week, my Republican colleagues were prepared to support the farm bill because we understand it needs bipartisan support; however, today, the farm bill has taken a very different form and is no longer about American agriculture but something far more political. Due to the inclusion of the tax increases, we are prepared to vote against this bill," said Goodlatte.

House Agriculture Committee Chairman Collin Peterson defended the provision, saying instead it was closing a tax loophole. "Apparently, the Bush Administration and some in the Republican leadership care more about defending the ability of foreign companies to exploit a loophole in the U.S. tax system than they do about supporting the hardworking families and farmers in this country. I hope that they will reconsider their opposition and join us in supporting this farm bill that represents a new direction for
agriculture policy," Peterson said.

"We can get to where we need to be without raising taxes and discouraging investment in America, but this is not the way to do it. Because the Democratic Leadership won't invest in American agriculture, they're calling on foreign companies to pick up the tab to fund our domestic priorities by increasing taxes on companies that provide millions of Americans with good jobs and reinvest in their U.S. operations. It is regrettable and unfortunate that the Democrats have chosen partisan politics over the welfare of rural America. This is partisan politics in its rawest form and Agriculture Committee Republicans will stand against it," Goodlatte added.

Peterson said, "At every turn, the Bush Administration and Republican Leadership have done their best to stall progress on the 2007 Farm Bill. Mischaracterizing the offset that will expand nutrition benefits for working families is just the latest attempt to derail this Farm Bill, despite broad support for the bill from farm, conservation, nutrition, energy, specialty crop and renewable energy groups.