Farm Bill Primer and Digest

[nosmokes]

A good round-up and analysis of the complexities that make up the Farm Bill.

original-farmpolicy

Tax Provision Passes, Kind Amd. Fails- Final Vote Today

Keith Good
Categories: Farm Bill / Doha / Trade

Tax Provision

Recall that yesterday’s FarmPolicy update indicated that, “Farm-state Republicans had been lining up with Democrats to defend the bipartisan bill but changed course when notified that a proposed increase in nutrition programs would be funded partly by tightening the rules on U.S.-based foreign companies that avoid U.S. taxes by using offshore havens” (Dan Morgan. “On Eve of Vote, Farm Bill Draws Threat of a Veto.” The Washington Post. 7.26).

Likewise, DTN Political Correspondent Jerry Hagstrom and DTN Staff Reporter Chris Clayton DTN noted on Wednesday (link requires subscription) that, “The Bush administration threatened Wednesday to veto the 2007 farm bill, in part, over Democrats’ plans to pay for a $4 billion increase in the food-stamp program over five years through a tax measure Democrats said was closing a loophole, but Republicans argued was a tax increase.”

In a separate DTN article from yesterday, Jerry Hagstrom noted that, “Democrats late Wednesday vigorously defended a decision to use a tax measure as an offset for a $4 billion increase in food stamps in the farm bill scheduled to go to the floor Thursday, even though it would cost Republican votes on the overall bill.

“The measure would tax royalties, interest and other payments U.S. foreign-owned companies make to foreign affiliates. The companies do not pay the taxes due to tax treaties, but Rep. Lloyd Doggett, D-Texas, who introduced the amendment to require payment of the taxes, said they are a ‘loophole.’

“House Agriculture Committee ranking member Bob Goodlatte, R-Va., called the provision a tax increase and said Republican committee members and House leaders would not vote for the farm bill if it remains.”
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complete article here