Results tagged “Guest Post” from The Blogging Councilor

The following post is from Jeb Bradley, who is running for U.S. House of Representatives for New Hampshire’s 1st Congressional District. 

(Click here to find this post on Jeb’s web site)

Subsidies –Subsidies-- Subsidies and the Americans Who Pay
05-27-2008 01:04pm

Congress is at it again, doing what they do best, picking winners and making Americans that pay the bills -- losers. Just look at the Farm Bill which the President vetoed. The veto was overridden in the House 316-108. Unfortunately, many conservatives even voted to override the President's veto.

Due to the fact that the House Leadership omitted an entire 34 page section of the bill that the President vetoed, another bill will have to go to the President after Memorial Day. But don't hold your breath hoping that unnecessary spending will be eliminated or that the President's expected veto will be sustained.

Food prices are soaring as are profits in farm states. Prices of corn, wheat, barley and soybeans have nearly doubled according to the Congressional Research Service. A growing appetite for bio-fuels and high global demand for foodstuffs worldwide have lead to significant food cost hikes for Americans and international food riots. Against that backdrop, a reasonable person might conclude now is the time to cut farm subsidies. But, no. Spending under the recently passed Farm Bill increases 44% and annual costs increase from $45 billion to $65 billion. The administration had proposed an income limit of $200,000 over which no taxpayer funded farm subsidies would be paid. The House and Senate settled on an income limit of $750,000 but then allowed a loophole for spouses to additionally receive farm subsidies. Another loophole exempts $500,000 of non-farm income per person which means a couple could have up to $2.5 million income and still receive taxpayer subsidies. The price tag for this turkey: $300 billion.

Sugar produces get a supersized, sweetheart deal as subsidies are increased and the legislation guarantees that 85% of sugar consumed in the Unites States must come from domestic sugar production, not cheaper imports. According to the Organization for Economic Cooperation and Development, sugar subsidies drive up the price of food for consumers by $1.5 billion and this new package could add another $400 million to the tab for diners.  Sugar producers are literally having and eating their cake all while forcing us to buy it.

All of this is on top of recent new mandates in a December energy bill that dictates a seven-fold increase in the use of ethanol by 2022. Never-mind that mandates for corn-based ethanol are fueling surging food prices. Never mind that ethanol impacts the environment through high water use and increased greenhouse gas emissions. Never mind the tax credit on ever gallon of ethanol and the tariffs on any imported ethanol that we pay. All this for a so-called renewable fuel that really is not renewable because it requires large amounts of oil to grow corn and refine it into ethanol. Given all this, one would think Congress or a Presidential candidate, other than John McCain, might just confront Big Ethanol.

Lastly, no big legislation would be complete without the trimmings of questionable Congressional provisions. Speaker Nancy Pelosi added $170 million for salmon fishing without debate or the possibility of an up or down vote. Another provision would require sale of land in the Green Mountain National Forest to a Vermont ski area which may mean portions of the Appalachian Trail will have to be removed. Amazingly enough it gets worse. Today's high prices for agricultural products under this farm bill will become the guaranteed price support level in the future as the legislation sets today's record prices as the benchmark for future subsidies. Translated: farmers receive record payments even if prices fall, and consumers pay either higher supermarket bills or higher subsidy costs. But substitute the political drama of record oil prices for record food prices and Congress would want executives heads on platters rather than farm bill give-aways.

Carol Shea-Porter willingly voted for the Farm Bill despite its budget-busting costs. And yet, when she ran for Congress she told New Hampshire voters that our country is "broke" and that "deficits are crippling us." Evidently there is nothing like feasting at the Congressional dinner table of farm subsidies to make her forget the budget diet she once preached.


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