WASHINGTON — President Bush warned Wednesday that he will veto any farm bill that would raise taxes or does not include reforms of some farm programs.
Bush spoke at the Agriculture Department at the swearing-in ceremony for former North Dakota Gov. Ed Schafer, who is taking charge of the agency in the midst of contentious negotiations on a five-year, $286 billion bill passed by both the House and Senate.
In veto threats issued last year, administration officials argued that the bill lacks reform, costs too much and raises taxes.
“Ed is going to work with members of both parties on a bill that spends the people’s money wisely, doesn’t raise taxes, reforms and tightens subsidy payments — a farm bill that will benefit the entire economy,” Bush said, restating those concerns. “I’m confident we can come together to get a good farm bill, but if Congress sends me legislation that raises taxes or does not make needed reforms, I’m going to veto it.”
At issue are tax provisions added to both versions of the bill that are intended to raise additional money for farm programs. The administration says the bills use funding gimmicks and tax increases to supplement a farm economy that is already strong.
The White House also says neither bill does enough to limit payments to wealthy farmers, arguing that Congress should adapt an administration proposal that would ban subsidies to farmers whose gross income exceeds an average of $200,000 a year.
