AAM Opposes Increase In Beef Tax
US - Larry Matlack, American Agriculture Movement (AAM) president, expressed his organization’s opposition to a 100-percent increase, or any increase, in the beef check-off program until the program is amended to allow producers the right of refund.
27 September 2007
3 minute read
"You would think that the First Amendment of the U.S. Constitution would protect cattle producers from being forced to pay the checkoff."
Larry Matlack, American Agriculture Movement (AAM)
“We are hearing a lot of chatter coming from inside the beltway from those making big bucks on the federally mandated $1-per head checkoff program who want a 100-percent increase the beef assessment,” stated Matlack. “This is a 100-percent tax increase on everyone that sells beef in the United States. It is a tax because it is mandated to be paid at every point of sale for every animal, beef and dairy, and there are no provisions to allow producers the right to refund.”
Explaining the reasons why AAM considers the beef checkoff a tax, Matlack explained, “You would think that the First Amendment of the U.S. Constitution would protect cattle producers from being forced to pay the checkoff, but the U.S. Supreme Court ruled summer before last that the checkoff is ‘government speech’ and not private speech. It walks, talks and acts like a tax, so of course it is a beef tax.”
“We need to stop and compare this request for a tax increase on cattle producers to the rhetoric surrounding the narrow passage of the 2007 farm bill in the House of Representatives last July,” explained Matlack. “Under provisions in the farm bill, a tax loophole was closed on U.S. subsidiaries of foreign-owned companies in order to help pay for critical nutrition programs. All but 19 Republicans voted against the bill based, in most cases, on the single issue of a perceived tax increase on foreign entities. Our hopes, expectations and demands of those same lawmakers are that they oppose any tax increase on cattle producers in the U.S. as much as they oppose closing a tax loophole on foreign interest in order to feed the hungry.”
“Instead of the increase in the beef tax, we need legislation passed and enacted to allow producers the right to a refund of the all commodity checkoffs,” added Matlack. “Until the programs allow refunds, and are therefore voluntary, they cannot be considered as anything other than a tax. There is also a desperate need for heightened and renewed oversight of all commodity checkoff programs by Congress to insure that not one red cent of these funds are being used for lobbying, especially to advance the self-interest of the processors and packers that do not pay the beef tax – that is unless they are a captive supplier, which is a separate issue for another time.”
“AAM does not oppose research and promotion checkoff programs,” concluded Matlack. “But we do demand they be voluntary and acceptable to those paying them. Before any consideration of increasing the beef tax, we demand Congressional oversight hearings and the right of refund.”
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