Spending and Budgets

April 15, 2021

April 15, 2021

Hello everybody out there in farm country. This radio commentary is brought to you by the National Corn Growers Association, CropLife America, and Renewable Fuels Association. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you.

And now for today’s commentary –

We have been hearing a lot about President Biden’s infrastructure plan. Well, it is a lot more
than money for roads, bridges, waterways and broadband. Senate Minority Leader Mitch
McConnell called for Republican resistance to the “motley assortment of the left’s priciest
priorities.” At this point we don’t know if this $2.3 trillion plan will become law or will we see
bipartisan negotiations.

Don’t let this spending bill get confused with the President’s budget suggestions for the next fiscal year beginning October 1. The White House budget serves as a recommendation to Congress and reflects the Administration’s priorities in spending negotiations for the next fiscal year. President Biden wants a 16% increase in overall spending next year. His priorities are:

 Education with a 40% increase
 EPA – 21% increase
 Ag department – 16% increase
 Defense will get almost no increase

The debates over next year’s budget and spending are just beginning.

Now that we are talking about budgets and money, here is what Successful Farming has to say –
“With the dramatic increase in crop prices, bankers reported an increase in farm income for the
first time in 8 years. Farmland values are projected to go up this year by 5%. Our nation’s
economy should grow by a robust 4.6%.” It has been 6 or 7 years since I saw this much
confidence in farm country. Enjoy it while we can. Pay down some debt. Our own federal
government should also pay down some debt, but we know they aren’t going to do that. There
are so many unanswered questions about what this President and Congress will do. I guess that
we just wait and see.

What about a tax increase? Did you know that 55 of Americans largest companies didn’t pay any income taxes last year? And they made more than $40 billion in profits. Big corporations have so many loopholes that they can use to avoid taxes. Small businesses including farms always pay taxes. If we make any money, we can’t escape.

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