A Windfall Profits Tax for Farmers--Heavens, No!--

Given the huge increase in food prices and farm incomes, I wonder why some of our politicians aren’t proposing a windfall profits tax on farmers.

To the contrary, Congress is passing a big farm bill with more pork for farmers:

A Porker Of A Farm Bill

The latest score on farm legislation: Congress 1, President Bush 0. And there's a good chance for a shutout within the next few days.

Wednesday afternoon, the House of Representatives overwhelmingly passed a much-debated Farm Bill, with a veto-proof 318-106 vote. The measure, stuffed with lawmakers' pet projects for local farmers, now moves to the Senate, where it is also likely to pass. Bush, now traveling in the Middle East, has threatened to veto the $290 billion bill because it gives generous subsidies to farmers, many of whom are now reaping the benefits of higher food prices.

"Farm income is expected to exceed the 10-year average by 50% this year, yet Congress' bill asks American taxpayers to subsidize the incomes of married farmers who earn $1.5 million per year," he said in a statement Tuesday.

Nonetheless, if it passes the Senate by a two-thirds majority, the president's veto would be moot. Still, Bush is likely to try--Congress has only overridden his veto once in the past seven years. It's also a smart move for him. As a lame duck president, he can call for reductions in government spending, then put the blame on a Democrat-controlled Congress for going over budget in an election year.

The "farm bill" is actually far more than funding for agriculture programs. The measure passed Wednesday increases funding for nutrition programs by $10.4 billion, provides $1 billion for renewable-energy investments, increases conservation spending by $7.9 billion and adds $84 million to international food aid and nutrition programs. The National Food Bank Network praised the bill, which provides $1.25 billion to food banks. The bill also cuts the corn ethanol tax credit [slightly to 45 cents a gallon], redirecting the money to incentives to improve research on cellulosic ethanol [subsidized at $1.01 a gallon].

But it's also laden with pork. According to Ryan Alexander, president of the watchdog group Taxpayers for Common Sense, the bill includes "tax breaks for horse racing and timber companies, millions for salmon fishermen and subsidies to millionaire farmers." The group says just 8% of all producers receive 78% percent of the subsidies in the farm legislation. . . .

When the current farm bill was proposed in February 2007, Bush wanted to provide subsidies only for farmers with incomes under $200,000 per year. The bill that just passed the House would provide subsidies for farmers who make up to $750,000 annually, $1.5 million for couples.

It is nonsense to continue subsidizing ethanol, propping up food prices, and providing other forms of government welfare for the rich.

UPDATE: Here is an example of the sort of provisions that lobbyists got inserted into the farm bill.

Stephen F. (mail) (www):
Congress has only overridden his veto once in the past seven years

What, they couldn't override the other one?
5.14.2008 9:41pm
dre (mail):

It is nonsense to continue subsidizing ethanol, propping up food prices, and providing other forms of government welfare for the rich.


Don't use logic when talking about politics. It hurts the brain.
5.14.2008 9:48pm
Smokey:
See, you get a group together, throw a few bucks at the politicians, and the result is that taxpayers are fleeced out of $billions.
5.14.2008 9:53pm
SenatorX (mail):
Is there any wonder why the American people hate congress?
5.14.2008 9:53pm
Oren:
They aren't exactly hunky-dory about the President either these days. . .
5.14.2008 10:36pm
Gaius Marius:
This is exactly why the Republicans in Congress are going to be flushed down the toilet this November. I have no doubt there are plenty of Congressional Democrats who are accessories to this financial raping of the American public. However, Congressional Democrats are expected to engage in this sort of nonsense. Republicans, on the other hand, like to brag to their grass roots constituents about how conservative they are only to return to Washington DC to pass ludicrous legislation such as this. Amazingly, the House Republicans are dumbfounded as to why their conservative constituents are abandoning the party as evident in the recent special elections.

Frankly, the time has arrived for a political reformation to take place in the Republican Party. It is timely to recall what Oliver Cromwell stated to his fellow Members of Parliament who overstayed their usefulness:

“You have sat too long for any good you have been doing. Depart, I say, and let us have done with you. In the name of God, go!”

Cromwell's foregoing indictment is most applicable to the House Republicans. In the name of God, just go!
5.14.2008 10:49pm
theobromophile (www):
The National Food Bank Network praised the bill, which provides $1.25 billion to food banks

Nothing against food banks, but isn't that an extraordinary amount of money? I mean, we already have welfare, food stamps, and WIC. Now we need another billion for food banks - which is, let's be honest - all on top of private donations, soup kitchens, and local charities that do that type of work.
5.14.2008 10:49pm
MarkField (mail):
Nobody has mentioned the real problem here: the malapportionment of the Senate which allows farm states much greater representation than they deserve. If you want better policies, you need a government capable of making them.
5.14.2008 11:43pm
Keith in Dallas (mail):
I wonder if Iowa were not the first state to caucus in Presidential primaries whether the public would have ever even heard of ethanol. What a joke.
5.14.2008 11:47pm
Thomas_Holsinger:
That would be called a "money tree" bill - shaking the tree, aka those who receive huge agricultural subsidies, for campaign contributions, with no intention whatever of actually passing the bill.
5.14.2008 11:47pm
Clayton E. Cramer (mail) (www):

Nobody has mentioned the real problem here: the malapportionment of the Senate which allows farm states much greater representation than they deserve. If you want better policies, you need a government capable of making them.
Except that the House (which doesn't suffer this problem) passed it by a veto-proof majority.

The bigger problem is that Bush says that the farm price supports should be limited to couples with adjusted gross incomes of $200,000. Congress didn't want those poor farmers to suffer, so the only farmers eligible for farm price supports are couples with $1.5 million adjusted gross incomes.

Think about it for a minute: if you have an adjusted gross income of $1.5 million, it is either from non-farm income (in which case you are so rich that your farm is a hobby), or you have a farm that is worth many millions of dollars. (If your farm is worth only $1.5 million dollar, then your annualized return on investment is 100%--so these farmers must have farms worth $5 million or more.)

And this is why the Democrats are insistent on this program?
5.14.2008 11:57pm
Clayton E. Cramer (mail) (www):

However, Congressional Democrats are expected to engage in this sort of nonsense.
While university professors talk about how the Democrats are the party of the poor and downtrodden. Well, they are. The Democrats pass bills like this to redistribute wealth upward from the middle class to the obscenely rich.
5.15.2008 12:01am
wuzzagrunt (mail):
High food prices are not the only factor in farm profitability. Food prices are up, but so are fertilizers, pesticides, fuel for farm machinery, utility rates, etc.... Also, regulatory compliance never sleeps.

All that said, this is still an abomination. More and more people are beginning to think we need a 3rd party in this country. I think two political parties are fine...just not the two we have now.
5.15.2008 12:36am
The River Temoc (mail):
Can the Obama campaign get Rev. Wright to sue for infringment of his copywritten sermons?
5.15.2008 1:14am
ChrisIowa (mail):

The bigger problem is that Bush says that the farm price supports should be limited to couples with adjusted gross incomes of $200,000. Congress didn't want those poor farmers to suffer, so the only farmers eligible for farm price supports are couples with $1.5 million adjusted gross incomes.


Just noting that both Iowa Senators favored the lower limit, Grassley especially has been pushing for a lower limit. The push for the higher limit came from elsewhere.
5.15.2008 1:52am
Cornellian (mail):
The National Food Bank Network praised the bill, which provides $1.25 billion to food banks

If the bill would give me a mere 10% of that amount, just $125 million, I hereby promise to praise the bill to the skies, 24/7 from now to the next election.
5.15.2008 2:26am
Frater Plotter:
Can the Obama campaign get Rev. Wright to sue for infringment of his copywritten sermons?

The word you're looking for is copyrighted. To "copywrite" is to "write copy", that is, to produce text for advertisements.

http://en.wikipedia.org/wiki/Copywriting
5.15.2008 3:11am
one of many:
I love the phrasing; $10.4Billion increase for nutrition, $1Billion increase for renewable energy investment, $7.9Billion increase in conservation spending, $84Million (am I reading that wrong?) for international food aid/nutrition programs, $1.25Billion increase for food banks AND then "[b]ut it's also laden with pork". Erg, how could they find time to insert an pork in with all non-pork tidbits they tossed in.
5.15.2008 3:20am
Buckland (mail):

Just noting that both Iowa Senators favored the lower limit, Grassley especially has been pushing for a lower limit. The push for the higher limit came from elsewhere.


Are you sure about that? The provision seems to have very little public support, but seems to hang on very well anyway. That suggests that a number of folks treat the provision with disdain publicly while protecting it privately.

I know nothing about the Iowa senators actual views about this subject. Only that if everyone who is publicly against this measure were actually against it we would see it disappear. It seems to have substantial support from unknown quarters.
5.15.2008 10:03am
SIG357:
This is exactly why the Republicans in Congress are going to be flushed down the toilet this November.

Right. That will bring all farm pork to a screeching halt! You'd never see a Democratic Congress passing bills like this .....

Congress is a reflection of the American people. In other words, the idiots are the people in the voting booths. Swapping out a bunch of "R"s for "D"s won't change a thing.
5.15.2008 11:00am
SIG357:
I always find it remarkable that the farm lobby has such incredible clout. If the US auto industry had similar influence, all foreign cars would effectively be banned. If the US computer industry had similar influence, every computer made in America would get a large government price support. If the US steel industry had similar influence, they'd be allowed to hire cheap and illegal Korean or Chinese steelworkers to lower costs.

America seems to be run by and for the agri-industry. Take time out from bashing Congress to point a finger at the people doing the bribing.
5.15.2008 11:07am
SIG357:
the malapportionment of the Senate which allows farm states much greater representation than they deserve.

No, they have exactly as much representation as they "deserve". These were the terms of the contract under which the soverign states entered into the United States. The real problem is the existence of the Federal income tax, which allows DC to engage in this sort of behavior in the first place.

The solution to our over-centralized government is not more centralization, but less.
5.15.2008 11:12am
Gaius Marius:
Right. That will bring all farm pork to a screeching halt! You'd never see a Democratic Congress passing bills like this .....

Congress is a reflection of the American people. In other words, the idiots are the people in the voting booths. Swapping out a bunch of "R"s for "D"s won't change a thing.


SIG357, you miss my point. There is no dispute that Congressional Democrats are any better than Congressional Republicans. However, Congressional Republicans are supposed to know better, and frankly, were sent to Washington DC by their grass roots constituents to behave like conservatives instead of RINOs. Because the current crop of Congressional Republicans have betrayed every single conservative principle, they should not expect the support of the conservative grass roots any longer. Judgment Day is coming for the Congressional Republicans who have committed political apostasy and they are found wanting.
5.15.2008 11:25am
Gaius Marius:
My last post should have contained the word "not" before "any better"...
5.15.2008 11:27am
DADvocate (mail):
"Farmers" hold an overly sacred position in our society. While tobacco companies were being sued and skewered for makiing their products, tobacco farmers, many who had gotten rich off growing tobacco and contributed to the tobacco health problems as much as the tobacco companies, were paid millions in buyouts. Under this logic we should be being out Columbian drug lords.
5.15.2008 11:31am
rarango (mail):
I had hoped the Rs would have put some adult leadership in following the twin disasters of Trent Lott and Dennis Hastert--alas, even after losing three "safe" seats to the D's they can't seem to figure it out.
5.15.2008 11:42am
J. F. Thomas (mail):
and frankly, were sent to Washington DC by their grass roots constituents to behave like conservatives instead of RINOs.

You are so naive. Their "grass roots" constituents are the very same people who profit so handsomely from these subsidies and fall over themselves to get this farm bill passed. The farm bill is bloated because it has something for everyone--but especially the hypocritical "I don't need no stinking government unless they are going to give me massive handouts" rural voters.
5.15.2008 12:42pm
Jiminy (mail):
The problem with the conservatism angle is that it becomes all stick and no carrot. Where's the compromise? That's how all these spending bills get passed - the non-conservative Republicans get their tax handout spending bills and the liberal Democrats get their social handout spending bills.

There's not a cognizant reform wing of the Congress to reel in either side with welfare reform or military spending reform, so the spending gets out of control. Now if we in America actually had to VOTE in each spending bill, you'd hope we could revive the reformists and spending-conservatives.

Think about it; if you had a spending/legislation ballot each month, you might pay a little more attention. Of course, you could argue that this defeats the purpose of electing representatives - but at the same time we only get one check on their enormous powers each election cycle, which gives them time to flip-flop as convenient.
5.15.2008 1:06pm
OK lawyer (mail):
I generally hate most subsidies. These food subsidies are especially heinous. The people of this country get fatter and fatter by following the USDA's food pyramid garbage, raising health care costs, killing us off, all the while we pay for it. Not just once at the grocery store, not twice in taxes, but at least 3 times when you factor in the additional health care costs.

We hold hearing on "windfall" oil profits, but this abomination passes with a veto proof margin. This is just a disgrace.
5.15.2008 2:01pm
SIG357:
There is no dispute that Congressional Democrats are any better than Congressional Republicans. However, Congressional Republicans are supposed to know better, and frankly, were sent to Washington DC by their grass roots constituents to behave like conservatives instead of RINOs.

You're kidding me? There is no such animal as "Congressional Republicans". Or even "Congressional Democrats". Each Congressman is a party of one, and answers to his own particular voters and lobbyists.

If your own Congressman is a Republican, and you're not happy with him, then don't vote for him. But to attribute your own dissatisfaction to some nebulous entity called "Congressional Republicans", most of whom never signed up to your agenda in the first place, is politically naive. I suspect the 100 GOP Congressmen who voted against this bill represented people who feel as you do. The eighty who voted for it represent people who feel differently.
5.15.2008 3:05pm
SIG357:
Because the current crop of Congressional Republicans have betrayed every single conservative principle, they should not expect the support of the conservative grass roots any longer.

Gee, if the "conservative grass roots" have such awesome power, how come the GOP Senate is so infested with statist-internationalists? How come they elected Bush? How come they nominated McCain, who makes Bush look like Barry Goldwater?

I'd like to see them manifest their anger in more constructive ways than staying home in November. Perhaps they could actually cough up some money in support of better candidates? And then vote for them?
5.15.2008 3:10pm