Washington, Jul 27, 2007 -

U.S. Congressman Pat Tiberi today issued the following statement as the U.S. House of Representatives debates the 2007 Farm Bill:

“Regardless of what the Democrats’ Farm Bill does or does not do to help farmers, this bill contains a surprise tax hike that could impact thousands of workers in Central Ohio. This measure would raise taxes on insourcing (foreign companies who own U.S. subsidiaries) companies that operate inside the United States. Democrats claim it closes a loop hole, but really it has the potential to hurt employers who have become part of our community like Honda North America. More than 200,000 Ohioans work for 1000 insourcing companies in the state. In the three counties I represent, these companies provide jobs to more than 13,000 residents. These increased taxes could drive the companies away or stop future investment in American jobs.

“In fact, Honda is against these tax hikes, as are companies based in Japan, in the United Kingdom, and in Canada that employ millions of Americans right here in our backyards. This Democratic tax hike disrupts current trade and discourages future job creation.

“Democrats will say their tax hike measure will force insourcing companies that don’t pay taxes to pay taxes. That’s an interesting assumption, since there has not been one single hearing in the House of Representatives about this measure. How could they make such a sweeping assumption? That’s why so many businesses that employ millions of people across the country are against the Democratic tax hike. Democrats added the $4 billion tax increase to the bill two days before it was considered on the Floor, avoiding thorough examination and the committee process. The Farm Bill was voted out of Committee anonymously. Then the Democrats added this tax increase. They took what has been historically a bipartisan process and made it highly partisan.

“Democrats will say that because Republicans are against the tax hike we are ‘anti-farmer.’ No farmer I know is for increased taxes, especially when those tax increases benefit corporate farmers in plain states.

“The Democratic measure included in this bill poses a direct threat to millions of jobs. While the Farm Bill is supposed to benefit farmers, Democrats are choosing to threaten the livelihood of 13,000 workers in my area and that’s just not right.”

To access more information about the insourcing companies in Ohio visit the following web sites:

http://www.odod.state.oh.us/research/files/B300000003.pdf

http://www.ofii.org/oh.htm