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Democrats Hijack Farm Bill, Tax Increase Threatens Five Million Jobs

Press Release

Location: Washington, DC


Representative John Carter (TX-31), House Republican Conference Secretary, voted against H.R. 2419, the Farm, Nutrition, and Bioenergy Act of 2007, after Democrats added a job-killing tax increase on foreign companies operating in the United States.

"Today I voted against the 2007 Farm Bill after Democrats rejected our attempt to remove a massive job-killing tax increase they added in the dark of night after this bi-partisan bill left the Agriculture Committee," said Carter. "I planned to support the original bill, but cannot support the Democrats' move to drive millions of American jobs out of the country by raising taxes on foreign companies operating in the United States. Shame on the Democrats for forcing a choice between supporting our hard working farmers and ranchers and protecting jobs for American workers."

Carter voted for the Republican motion to force a vote of the bi-partisan Farm Bill without the job-killing tax provision. This motion was defeated on a near Party-line vote.

The tax provision was added late in the evening on Wednesday in the Rules Committee by Democrat Rep. Lloyd Doggett (TX-25), after the bill passed the Agriculture Committee with a unanimous vote of Republicans and Democrats.

According to the National Association of Manufacturers, the haphazard tax increase will threaten the jobs of 5.1 million Americans-- 341,200 workers in Texas alone. At least 50 foreign-owned companies in Texas who employ American workers will find themselves paying 30 percent in taxes on their American investments, which overrides a series of carefully negotiated treaties between U.S. and foreign nations that have been approved by the U.S. Senate over the past several decades. Companies that will be affected by this increase in Texas include Samsung, BAE, Cadbury Schweppes-- which includes brands like Dr. Pepper, Honda, Nestle, Shell Oil Company, and Sony, to name a few.

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