Mr. Chairman, I offer an amendment. Mr. Chairman, I yield myself such time as I may consume. The Flake-Van Hollen-Platts-Waxman-Bartlett-Doggett amendment prohibits the expenditure of funds for salaries to implement a taxpayer-funded…
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
The Flake-Van Hollen-Platts-Waxman-Bartlett-Doggett amendment prohibits the expenditure of funds for salaries to implement a taxpayer-funded tobacco bailout in this program. This amendment would still permit the Department of Agriculture to implement a program using industry as opposed to taxpayer funds.
The tobacco buyout is simply a bad deal for taxpayers. There is never a good time to spend $10 billion bailing out tobacco farmers; but in the midst of a war, a deficit, and an economic recovery, now is the worst time.
Unfortunately, Members of this body were not given the opportunity to debate this provision during the recent consideration of H.R. 4520, the corporate tax bill. An amendment I offered with the gentleman from Texas
(Mr. Doggett) would have stripped the bailout provision from the bill. However, this amendment was not accepted by the Committee on Rules. As a result, I and a number of my colleagues have no option other than opposing final passage of that legislation. There were a lot of provisions that I liked in that bill. The tax cuts were particularly good, but I voted against it because of this egregious provision, the tobacco bailout.
Today, the House finally has the opportunity to debate the merits of the $9.6 billion bailout for the tobacco industry.
The Federal tobacco quota system was established as a temporary program during the Depression era and has gone relatively unchanged since then. It was created to control the supply and, in turn, market prices for U.S.-grown tobacco. The quota system has long outlived any usefulness it might have had. Tobacco production in the U.S. has been declining steadily because, among other things, lower-price foreign tobacco is reducing demand for artificially high-priced U.S. product.
Interestingly, current law requires that tobacco growers choose by referendum every 3 years whether or not to continue Federal support of the industry. While the quota system is resulting in the decline of the industry, growers have chosen to carry on with the program. Now we are offering to buy the growers out of the program that they have chosen to be with for the last 3 years, that they have chosen to continue at a cost of $9.6 billion in taxpayer money. Much of the buyout payments would land in the accounts of the big tobacco companies.
I am also concerned that this proposed buyout would set a bad precedent and that future efforts to end agricultural quota or subsidy programs will come at too high a price for taxpayers. This $9.6 billion buyout is being touted as a free market solution to the problems resulting from Federal support. Conservative estimates put the value of the Federal buyout at two to three times the market value of the quotas. This is no free market program. The Federal purchase of federally created quotas at two or three times the market price is simply not a free market solution.
For the sake of the taxpayers that we represent, I urge passage of the Flake-Van Hollen-Platts-Waxman-Bartlett-Doggett amendment. I want to say thanks in particular to the gentleman from Maryland (Mr. Van Hollen) for working so hard on this amendment with others.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 5 minutes to the gentleman from Maryland (Mr. Van Hollen).
Mr. Chairman, I yield 2 minutes to the gentleman from Illinois (Mr. Kirk).
Mr. Chairman, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Platts).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, before yielding to the gentleman from Texas, I would just point out that if there is no money, why bother opposing this? This is an amendment that seeks to prohibit the expenditure of money. If no money is being expended, we need not worry in any other bills or here.
Mr. Chairman, I yield 3 minutes to the gentleman from California (Mr. Waxman).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, before yielding to the gentlewoman from California (Mrs. Capps), I would like to point out the comments of the gentleman from Tennessee about this not being about smoking. That is exactly how I feel. This is about the expenditure of taxpayer dollars. This would still allow the expenditure of industry-funded bailouts, simply not taxpayer dollars.
Mr. Chairman, I yield 2 minutes to the gentlewoman from California (Mrs. Capps).
Mr. Chairman, I yield 2 minutes to the gentleman from Maryland (Mr. Bartlett).
(Mr. BARTLETT of Maryland asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield 1 minute to the gentleman from Washington (Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield 4 minutes to the gentleman from Texas (Mr. Doggett).
Mr. Chairman, I yield myself the remainder of the time.
Just in closing, Mr. Chairman, I would simply say that it has been pointed out again and again here, this does not prevent a buyout. Perhaps a buyout is proper, but it should happen not with taxpayer funds, but with industry funds. So this simply protects the taxpayer.