WASHINGTON, DC - Every day thousands of kids around the 14th District, and the country. participate in 4-H, the Future Farmers of America and similar programs aimed at providing them with educational opportunities in agriculture. As these youth raise the livestock, they are learning important lessons in time management, juggling important responsibilities and, of course, agriculture. A part of the process is, at the end of the project, selling the raised livestock at local county fairs. The proceeds are then used by the kids to participate in the next year's ag project, for college scholarship money, or similar activities.

Unfortunately, the US government has found a way to make that process burdensome and costly: By taxing those proceeds as income.

"While a young man or woman is working hard to better themselves for their future - and the future of our nation - the tax-man is licking his lips, preparing to carve into the money which should be going entirely to the kids. With every dollar taxed by the IRS from the sale of educationally-raised livestock, kids are denied the ability to participate in the program again, and provide for their own future education," said Paul. "At a time when everyone agrees more needs to be done to promote education and prevent a decline in agriculture, it is shameful that the tax code punishes kids for participating in educational activities."

To address this problem, Rep. Paul last week introduced the Agriculture Education Freedom Act, HR 3626. This legislation will exempt from taxes any income derived from the sale of livestock which was raised for educational purposes through 4-H, FFA or a similar 501c(3) organization, or educational institution.

"The amount of taxes generated from these sales is a drop in the bucket compared to the ocean of money collected by the government every year; but to the young person getting their first look at agriculture, this onerous tax can be what drives them from future involvement in agriculture. We need to be encouraging our best and brightest to follow their parents and grandparents in agriculture, not drive them away," said Paul. "Those who fear the minimal loss of revenue should recognize this for what is: investing in the future of education, the future of agriculture, and the future of our nation."

Paul said this legislation is only a "first step" in liberating youth from the oppressive taxes they pay while participating in agriculture and ag-related educational programs.

Paul introduced the legislation prior to the congressional recess, so that it would be in the dockets before Tax Day. If the legislation passes this year, it will not only exempt future sales from taxes, but also all those from the 1998 tax year.