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No compromise from White House on funding of farm billBy Jennifer M. Latzke Acting U.S. Secretary of Agriculture, Chuck Conner, is adamant that either the funding issues for the farm bill will be fixed, or President Bush will veto the legislation. In a press conference with reporters Jan. 15, Conner stressed that unless the funding of the legislation is resolved to the President's wishes, he and other senior level advisors will recommend a veto. "We encourage the members to resolve these funding issues so that we can get to the point of debating policy," Conner said. "We're opposed to any farm bill that raises taxes." He gave the example of recent energy legislation and legislation for children's health insurance that included tax increases, which President Bush vetoed until tax increases were cut from the bills. Conner said it should be no surprise to anyone that the President is taking the same stance toward the farm bill. And, without a resolution for how to fund the bill, Conner told reporters that it's no use to start debating the policy aspects of the legislation. "We can't get to part of the debate without resolving the tax thing," he said. "It's fundamental so we can start having a discussion." At issue are tax increases to fund new and expanded programs. The Senate version of the bill would increase overall spending by $37 billion through what Conner calls, "budget gimmicks and tax increases." Meanwhile, the administration's own proposal provided for $5 billion of additional help and all without new taxes and an honest budget accounting system, according to Conner's remarks at the annual American Farm Bureau Federation conference in New Orleans last week. Conner told that group that the accounting gimmicks amount to shifting liabilities or accelerating payments from one year to another, which amounts to a budget savings on paper, but doesn't actually reduce taxpayer dollars spent. Another concern is the "trade-distorting effects of increasing target prices and loan rates," Conner continued. In his talk with reporters, Conner added if the farm bill wasn't already tough enough to pass in a climate of high crop prices and trade issues, it would be virtually impossible to pass it with the recommended tax increases. "I want to be very clear, there will be no compromise on the tax issue, none," Conner said in his press conference with reporters. "The President does not favor more revenue coming into the treasury because of taxes." Jennifer M. Latzke can be reached by phone at 620-227-1807, or by e-mail at jlatzke@hpj.com. 1/21/08 Date: 1/17/08
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