Colorado senator Ken Salazar, who bested Coors beer Pete Coors for his Senate seat in 2004, has been mocked for his ignorance of the US Tax Code.
Salazar, a fifth-generation Colorado rancher, touted himself as a man of the people, claiming that he understood the struggles of the working class and would create jobs and boost education funding. Apparently, however, he does not understand tax returns of the working class – or the wealthy, for that matter.
Senator Salazar recently supported a bill in Congress which continues subsidies to farmers with adjusted gross incomes of $750,000 or less. The bill passed.
The bill is estimated to cost taxpayers $289 billion over five years. Commodity-based subsidies for rice, cotton, corn, soybeans, wheat and other crops will cost about $43 billion. The remainder of the package funds crop insurance, conservation programs and “domestic food aid.”
Senator Salazar’s colleague, Senator Allard, said about the bill, “I’m disappointed that it does so little to reform government subsidies, particularly to wealthy individuals.” He was, of course, pointing to those who have adjusted gross incomes as high as $750,000 per farmer or $1.5 million for married farmers. He nonetheless voted in favor of the bill.
However, The Denver Post quoted Senator Salazar as saying, “That number doesn’t take into account deductions for the cost of running a farm.” He continued, “A farmer with an adjusted gross income of $750,000 might be losing his shirt” after paying for fuel, a new tractor and other expenses.”
Hmm. Sounds compelling, huh? Only Senator Salazar is wrong. Adjusted gross income is computed after deductions for farming expenses. Just take a peek at the front page of your form 1040.
So, yeah, under the new bill, you can be a millionaire and receive a subsidy. In some circumstances, there is no requirement to plant the land at all in order to receive a subsidy.
It’s amazing that politicians such as Senator Salazar are willing to play fast and loose with our tax dollars without even knowing the facts. And somewhere, a rich farmer is thanking him for it.
(My quick disclaimer: I was raised in rural North Carolina. I have friends and relatives who farmed. I am not anti-farmer, nor am I anti-aid. I am anti-waste. And I am especially anti-“not knowing the rules when you make policy.”)
I live in Missouri, which now mandates ethanol in all gasoline. This was a knee-jerk law passed by people who don’t have a clue and refused to consider the facts. It is a bad idea but now we’re stuck with it, and other surrounding agricultural states have jumped on the same ill-conceived bandwagon.
This is definitely NOT the time to be paying farmers NOT to grow crops. All the crop no-plant subsidies should cease immediately. Millions of acres of usable land are sitting idle, while food prices climb and people in other countries are starving to death, and taxpayers foot the bill for this foolishness. Ridiculous. Come November we need to flush the knee-jerk pork-barrel politicians out of Washington and elect people who have a brain and the ability to use it.
the key to a really successful congressperson is not, in my opinion, their ability to be an expert on everything they are asked to vote – but to surround themselves with smart and diverse people who are able to inform and prepare them for each vote.
Unfortunately, so much of this type of legislation is pushed through quickly with outrageous comprimises to get it approved – and much of the voting is based on party/state politics rather than what is the best for the voters and the country.
After living in Iowa for over 20 years, I’m not sure about the term “rich farmer.” I think it’s an oxymoron. The only “farmers” in Iowa who get rich are those who (1) work for large grain companies planting seed corn or (2) are hog farmers, oops, I mean pork producers. The family farm is fast disappearing.
I’m thinking these so-called “farmers” are just CEO’s of big companies which just happen to produce commodities. Anyone who nets over $750,000 a year off “farming” is not really a farmer. And, no, they should not get subsidies.
KiKiara wrote: …the key to a really successful congressperson is not, in my opinion, their ability to be an expert on everything they are asked to vote – but to surround themselves with smart and diverse people who are able to inform and prepare them for each vote.
I agree. Even smart people cannot be smart about everything, so they need to be smart enough to rely on other smart people. Senator Salazar would be wise to hire Tax Girl before he embarrasses himself further.
Another example: If Pete Coors had hired me to help him connect with the “working man,” he never would have lost to Salazar, and the home of every adult voter in Colorado would have a fresh keg of Coors on tap.