"We have a long way to go," said Conner.
A similar farm bill in the House of Representatives received a similar veto threat, but also received less support from Republicans for language in the bill that would've paid for subsidies by tightening tax rules on corporate foreign subsidiaries. The Senate version is much more widely supported and would be financed in part by closing a loophole through which a number of U.S. businesses can avoid or lessen taxes, a proposal the Bush Administration opposes. Specifically, the Senate bill would clarify the economic substance doctrine, codifying a transaction as one that requires "both a meaningful change in economic position and a business purpose independent of Federal taxes."
"This will give courts a uniform doctrine to apply to non-economic transactions that are inappropriately motivated solely to avoid Federal taxes," said Sen. Chuck Grassley (R-IA), a supporter of the Senate farm bill and ranking member of the Senate Finance Committee. "Codifying the economic substance doctrine will provide an additional deterrent against taxpayers entering into transactions solely for tax purposes in ways that are inconsistent with congressional intent."
If passed it would create a $5.1 billion fund that farmers could tap into
when hit by natural disasters and would fund farm subsidy programs, food stamps,
environmental programs and biofuels research.
Jacob Barron, NACM staff writer