OPENED UP A NEWSPAPER AND I SAW SOMETHING INTERESTING. I'VE
           SPOKEN ABOUT RICULTURE AND FAMILY FARMERS ON THE FLOOR OF THE
           SENATE IN THE LAST FEW WEEKS, TALKED ABOUT WHAT'S HAPPENING IN
           THE MIDDLE PART OF OUR COUNTRY WITH THE DEPEE POPULATION OF THE
           MIDDLE OF AMERICA -- WITH HE DEPOPULATION OF THE MIDDLE OF THE
           AMERICA, RURAL COMMUNITIES DRYING UP, SH RIFLING LIKE PRUNES,
           PEOPLE MOVING OUT, NOT MOVING IN. MAIN STREET BUSINESSES GOING
           OUT. NOBODY SEEMS TO CARE VERY MUCH. THE BUSINESS SECTION OF

           THE MINNEAPOLIS TRIBUNE HAD NO FASCINATING STORIES ON THE SAME
           FRONT PAGE. IT RESPONDS IN A KIND OF PERVERSE WAY TO WHAT'S
           HAPPENING BOTH HERE IN THIS CHAMBER AND ALSO AROUND THE COUNTRY
           WITH RESPECT TO POLICY DEALING WITH FAMILY FARMERS. FIRST, "CAR
           GUILD PROFITS FROM DECLINE IN FARM PRICES. 53% JUMP IN EARNINGS
           EXPECTED." CAR GUILD. WELL, CAR GUILD IS A COMPANY. IT'S ALWAYS
           DONE QUITE WELL, I BELIEVE. IT IS A PRIVATELY HELD COMPANY. IT

           MOVES AGRICULTURAL PRODUCTS, IS INVOLVED IN A WIDE RANGE OF
           ACTIVITIES DEALING WITH AGRICULTURAL PRODUCTS. SO CAR GUILD
           PRODUCTS FROM THE DECLINE IN FARM PRICES. IS THAT UNUSUAL?
           NO. BIG AGRIBUSINESSES ALL TOO OFTEN ARE PROFITING FROM THE
           MISERY OF AMERICA'S FAMILY FARMERS. FAMILY FARMERS OVER HERE GO
           BROKE, CARGILL SEES 53% JUMP IN EARNINGS. AND CARGILL,
           INCIDENTALLY, WANTS NOW TO MARRY UP WITH CONTINENTAL GRAIN.

           CARGILL AND CONTINENTAL, THEY WANT TO GET MARRIED, MERGE, AND
           BECOME BIGGER, MORE MARKET POWER. AND IN THE QUESTION OF MARKET
           POWER, IT'S REASONABLE TO ASK, WHO WINS AND WHO LOSES?
           FAMILY FARMERS ALL TOO OFTEN LOSE AND THOSE WITH THE MOST
           MARKET POWER WIN. CARGILL PROFITS FROM THE DECLINE IN FARM
           PRICES. AND YOU COULD WIPE OUT THE NAME "CARGILL" AND INCLUDE
           ANY NUMBER OF AGRIBUSINESSES. I'M NOT PICKING ON CARGILL. THEY
           JUST HAPPENED TO BE IN THE PAPER ON SATURDAY. BUR THEN LET'S GO

           TO THE BOMTS OF THE SAME PAGE. "FARMERS ARE GOING BROKE. FAMILY
           FARMERS ARE GOING BROKE BECAUSE COMMODITY PRICES HAVE
           COLLAPSED." THE PRICE OF WHEAT HAS COLLAPSED. "GENERAL MILLS,
           TOO BOOST CEREAL PRICES 2.5%." GENERAL MILLS IS RAISING CEREAL
           PRICES AN AVERAGE OF 2.5%. NOW, ONE MIGHT ASK THE QUESTION IN
           TERMS OF PUBLIC POLICY, WHAT'S GOING ON IN THIS COUNTRY?
           WHEN THE FOLKS WHO GAS THE TRACTOR UP IN THE SPRING, BORROW

           SOME MONEY TO BUY SOME SEED AND SOME GAS AND SOME FERTILIZER,
           THEN PLANT A CROP, RAISE SOME WHEAT AND SELL IT IN THE MARKET,
           THEY'RE GOING BROKE BECAUSE THEY'RE TOLD THAT THE WHEAT THEY
           PRODUCE FROM THE FIELDS DOESN'T HAVE ANY VALUE?
           BUT THE PEOPLE THAT BUY THAT WHEAT AND TURN IT INTO CHEERIOS OR
           WHEATIES OR LUCKY CHARMS, EVEN THOUGHTHE PRICES OF COMMODITIES
           HAVE COLLAPSE AND THEY ARE PAYING THE FARMER LESS -- IN FACT,
           SO LITTLE THAT FAMILY FARMERS ARE GOING BROKE IN RECORD NUMBERS
           -- THEY SAY THEY NEED TO BOOST CEREAL PRICES THAT PEOPLE PAY AT

           THE GROCERY STORE. I WOKE UP THIS MORNING AND I ATE A BOWL OF
           CEREAL. I WON'T ADVERTISE WHICH BOWL IT WAS, BUT I ATE A BOWL
           OF CEREAL. AND I LOOKED AT THE BOX, AFTER I HAD SEEN THIS IN
           THE PAPER ON SATURDAY, AND I TRIED TO AN ICE WHAT'S IN THIS
           CEREAL I'M EATING. I'LL TELL YOU WHAT'S IN THE CEREAL. GRAIN.
           AND SO THIS COMPANY BUYS IT FROM FATHERS PAYS THEM A PITTANCE.
           AND THEN THEY PUFF IT OR THEY CRISP IT OR THEY SHRED IT, AND
           ONCE THEY'VE GOT IT ALL PUFFED AND THEY SELL IT AS PUFFED

           WHEAT, OR SHREDDED WHEAT, ONCE THEY'VE GOT THE PROCESS ALL DONE
           AND THEY'VE ADDED AIR TO IT, OR THEY'VE CUT IT WITH A KNIFE AND
           BLOWN IT UP, THEN THEY PUT IT TO THE GROCERY STORE SHELL OF AND
           THEY CHARGE A -- TO THE GROCERY STORE SHELF AND THEY CHARGE A
           PRICE FOR IT. THEY SAYS IT'S NOT ENOUGH. WHILE FARMERS ARE
           GOING BROKE, THEY SAY THEY NEED TO BOOST CEREAL PRICES. YOU
           TALK ABOUT A DISCONNECTION, YOU TALK ABOUT EVIDENCE THAT THE

           MARKET SYSTEM DOESN'T WORK IN AGRICULTURE... THERE MUST SURELY
           BE A GOLDEN RULE HERE, THE ONE THAT SAYS THAT THOSE THAT HAVE
           THE GOLD MAKE THE RULES. THERE MUST BE A GONDLE RULE HERE THAT
           SAYS THAT CEREAL MANUFACTURERS CAN INCREASE PRICES WITH
           IMPUNITY WHILE FAMILY FARMERS GO BROKE BECAUSE THEY'RE TOLD
           THAT THEIR FOOD HAS NO VALUE. I MENTIONED LAST WEEK AN AUCTION
           SALE BY A FARM WIFE IN NORTH DAKOTA. SHE WROTE A LETTER AND
           SAID, YOU KNOW, WE WERE FORCED TO SELL OUT AND SHE SAID, MY

           17-YEAR-OLD SON WOULDN'T EVEN COME DOWN. HE STAYED IN BED
           DURING THE DAY OF THE AUCTION SALE, REFUSED TO COME DOWN TO
           WITNESS THE AUCTION SALE OF THIS FARM BECAUSE HE WAS HEART
           HEARTBROKEEN. IT WAS BREAKING HIS HEART THAT WE WERE HAVING TO
           SELL OUR FARM. HE WANTED TO FAFIRM THIS IS ALL ABOUT HUMAN
           MISERY, FAILURE, AND IT'S NOT THEIR FAULT. IT'S NOT FAMILY
           FARMERS' FAULT THAT COMMODITY PRICES HAVE COLLAPSED. IT IS A
           HUNGRY WOFERMENTD A LOT OF FOLKS GOING TO BED -- HUNDREDS OF

           MILLIONS OF PEOPLE GOING TO BED WITH AN ACHE IN HER BELLY EVERY
           NIGHT BECAUSE THEY DON'T HAVE ENOUGH TO EAT. AND OUR FARMERS
           ARE TOLD THEIR PRODUCT HAS NO VALUE AND WHEN SOMEONE TURNS
           THEIR INTO A PRODUCT BY PUFFING IT UP, THEY GET RECORD PROFITS
           AND STILL WANT TO INCREASE THEIR PRICES. I WANT TO JUST PUT UP
           HERE A CHART THAT SHOWS THE AVERAGE ANNUAL RETURN ON EQUITY FOR

           THE MAJOR SEAR YL -- CEREAL MANUFACTURERS, 1993-1997. 29 III,
           24%, 25%, 22% OUR FAMILY FARMERS ARE GOING BROKE RAISING THE
           PROTEDS THAT GO INTO THIS CEREAL. AND THE LARGEST CORPORATIONS
           THAT MAKE THIS CEREAL ARE MAKING SUBSTANTIAL RETURNS THAN THEIR
           EQUITY. THERE IS SOMETHING WRONG WITH THAT SYSTEM. SOME SAY
           THAT'S THE WAY IT WORKS. THE BIG GET BIGERED AND THE SMALL GET
           PHASED OUT. IF THIS COUNTRY DECIDES IT'S WORTH LOSING FAMILY
           FATHERS IT WILL HAVE LOST SOMETHING OF GREAT STROOL OUR
           COUNTRY. SOME IN THIS CHAMBER THINK HAVING GIANT AGRIFACTORIES

           AROUND IN THE FUTURE, THAT'S FINE. THEY'LL FARM AMERICA FROM
           COAST TO COAST. IT'S NOT FINE WITH ME. THIS COUNTRY WILL HAVE
           TAKEN A JINTSDSST GIANT STEP BACKWARD UNLESS WE CHANGE
           FUNDAMENTAL FARM LAW THIS YEAR AND SAY THAT WE WILL PROVIDE A
           DECENT SAFETY NET FOR FAMILY FARMERS. WE DO IT FOR OTHERS. WE
           HAVE A SAFETY NET. WE HAVE A MINIMUM WAGE, WE HAVE OTHER KINDS
           OF DEVICES TO PROVIDE A SAFETY NET. FAMILY FARMERS, WE ARE WERE
           TOLD UNDER THE CURRENT FARM BILL ABOUT TWOR THREE YEARS AGO

           WE'RE GOING TO PULL THE SAFETY NET OUT FROM UNDER YOU AND THEN
           PRICES COLLAPSED. THE NET RESULT IS THAT FAMILY FARMERS HAVE NO
           EFFECTIVE SAFETY NET. WHEN YOU LOOK AT WHAT'S GOING ON,
           "CARGILL PROFITS FROM DECLINING FARMING PRICES," IT'S UNFAIR TO
           FAMILY FARMERS. WE'RE ASKED FOR SUBSTANTIAL INVESTIGATIONS BY
           THE JUSTICE DEPARTMENT ABOUT CONCENTRATION OF ECONOMIC POWER
           AND WHAT IT'S DOING TO FAMILY-SIZED FARNLS AND I HOPE THAT THE

           JUSTICE DEPARTMENT WILL MOVE AND MOVE AGGRESSIVELY ON THESE
           ISSUE. BUT MORE IMPORTANTLY, THIS CONGRESS NEEDS TO DECIDE IN
           THE NEXT FEW WEEKS WHETHER IT WANTS FAMILY FARMERS LEFT IN THIS
           COUNTRY. AND IF IT DOES, WE HAVE TO DO A U-TURN ON FARM POLICY
           AND RECONNECT A DECENT SAFETY NET FOR FAMILY-SIZED FARMS. I
           KNOW SOME PEOPLE SAY, WELL, ALL THIS IS WONDERFUL, BUT IT'S
           BORING AND NOT VERY POFERMENTB IT'S CRITICALLY IMPORTANT TO
           FAMILIES OUT THERE STRUGGLING TO MAKE A LIVING. WILL ROGERS
           SAID MANY YEAR, HE SAID, IF ONE DAY, IF ON ONE DAY ALL THE

           LAWYERS ON WALL STREET FAILED TO SHOW UP FOR LUNCH, WOULDN'T
           MEAN A THING TO THIS COUNTRY. BUT IF ONE DAY ALL THE COWS IN
           OUR COUNTRY FAILED TO SHOW UP TO BE MILKED, THAT WOULD BE A
           PROBLEM. WHAT HE WAS TRYING TO DESCRIBE WAS A DIFFERENCE
           BETWEEN THOSE WHO MOVE PAPER AROUND AMERICA AND THOSE ON THE
           FARM WHO PRODUCE REAL PRODUCTS WITH REAL VALUE THAT CONTRIBUTE
           TO FEEDING OUR COUNTRY. AND THAT ADMONITION BY WILL ROGERS IS
           JUST AS IMPORTANT TODAY. I HOPE THE JUSTICE DEPARTMENT WILL

           TAKE A LOOK AT THE CAR CARGILL-CONTINENTAL MERGE WE ARE A
           CRITICAL EYE TO SAY, WHY DO WE NEED CORPORATIONS ALREADY TOO
           LARGE IN THIS SYSTEM TO GET BIGGER?
           WHY DO WE NEED THEM TO IMPOSE THEIR ECONOMIC WILL ON SMALL
           PRODUCERS?
           WHY DO WE NEED TO GIVE THEM MORE ECONOMIC CLOUT TO DO THAT?
           I HOPE THE JUSTICE DEPARTMENT WILL LOOK AT MARKET CONCENTRATION
           IN MEATPACKING AND IN A WHOLE RANGE OF OTHER AREAS BECAUSE
           THOSE ARE THE KINDS OF THINGS THAT ARE UNDERMINING THE
           FOUNDATION OF AMERICA'S FAMILY FARMS. A NUMBER OF US WILL SPEAK

           AT GREATER LENGTH ON THIS ISSUE IN THE COMING DAYS BECAUSE WE
           MUST CONVINCE THIS CONGRESS THAT THEY HAVE A RESPONSIBILITY
           RESPONSIBILITY, WE HAVE A RESPONSIBILITY TO DEVELOP A FARM
           PROMISE THAT WORKS, QUAUN THAT TELLS FAMILY -- ONE THAT TELLS
           FAMILY FARMERS, YOU MAKE A DIFERMENTBS WE WANT YOU TO MAKE A
           DECENT LIVING IF YOU WORK ON THE FAMILY FARM. I'D LIKE TO
           MENTION ONE ADDITIONAL ISSUE AND I EA LIKE IT TO APAR IN A
           SEPARATE PORTION OF THE RECORD BY UNANIMOUS CONSENT. MR.

           PRESIDENT, LAST THURSDAY WAS TAX-FILING DAY AND WE HAD A NUMBER
           OF MY CLEELINGS COME TO THE FLOOR OF THE SENATE AND TALK ABOUT
           TAXES. AND I HAVE YET TO MEET ANYBODY THAT LIKES TAXES. I KNOW
           TAXES PAY FOR THE COST OF CIVILIZATION. I KNOW THAT WE WOULDN'T
           HAVE THE KIND OF COUNTRY WE HAVE IN THIS COUNTRY WITHOUT TAXES.
           I KNOW THAT THE ABILITY TO DRIVE ON GOOD ROADS TO HAVE A POLICE
           FORCE, TO HAVE A FIRE DEPARTMENT, TO HAVE A DEFENSE DEPARTMENT,
           TO HAVE SAFE FOOD THROUGH FOOD INSPECTORS, TO BE ABLE TO
           CONTROL OUR BORDERS, ALL OF THOSE THINGS REQUIRE THE PAYMENT OF

           TAXES. BUT OUR TAX SYSTEM HAS BECOME ENORMOUSLY COMPLICATED,
           AND IT OUGHT TO CHANGE. AND I INTRODUCED ABOUT A YEAR AND A
           HALF AGO A PROPOSAL CALLED THE FAIR AND SIMPLE SHORTCUT TAX
           PLAN. IT IS CALLED THE "FAST" PLAN. YOU WANT TO FILE YOUR TAX
           RETURN WITH MINIMUM BOTHER, YOU WANT TO AVOID HAVING TO FILE AN
           INCOME TAX RETURN AT ALL?
           WELL, THIS IS A PLAN THAT WILL WORK FOR YOU. WASN'T TOO MANY
           YEARS AGO THAT THE AMERICAN PEOPLE BY AND LARGE DIDN'T HAVE TO

           FILE AN INCOME TAX RETURN BECAUSE ONLY A SMALL PERCENTAGE OF
           THE AMERICAN PEOPLE PAID INCOME TAXES. ABOUT 6% OF THE AMERICAN
           PEOPLE HAD A REQUIREMENT TO FILE A TAX RETURN. THE REST OF THE
           PEOPLE DIDN'T. FOR THOSE WHO HAD TO FILE, THEY HAD A VERY THIN
           INSTRUCTION BOOKLET, JUST A COUPLE OF PAGES. NOW WE HAVE AN
           INSTRUCTION BOOKLET WITH OUR INCOME TAX RETURN THAT LOOKS VERY
           MUCH LIKE A JC PEN KNEE'S CATALOGUE. WE'VE MOVED IN THE WRONG
           DIRECTION WITH A HIGHLY COMPLICATED INCOME TAX SYSTEM AND IT

           NEED NOT BE THAT WAY. WE'VE HAD PEOPLE COME TO THE FLOOR
           SAYING, LET'S ABOLISH THE WHOLE INCOME TAX. I'D LIKE KNOW WHAT
           YOU WANT TO PUT IN ITS PLACE BUFF ABOLISH T BUT THEY SAY WE'D
           LIKE TO ABOLISH T THE OTHERS SAY, WELL, LET'S HAVE A FLAT TAX
           SO THAT THE PEOPLE MAKING $30,000 A YEAR CAN PAY THE SAME TAX
           RATE AS ROSS PEROT OR DONALD TRUMP PAY. YPO HAPPEN TO SHARE
           THAT BELIEF. OTHERS SAY, WELL, LET'S HAVE A NATIONAL SALES TAX.
           LET'S GET RID OF THE INCOME TAX AND PUT A SALES TAX ON
           EVERYTHING. I DON'T KNOW HOW YOU HAD -- HOUF YOU'D LIKE TO BUY

           5 HOME AND THEN DISCOVER THAT YOU HAVE TO PAY A 4% OR 5% SALES
           TAX ON THE VALUE OF THE HOME OR IF THAT'S THE FIRST EXEMPTION,
           WHAT ELSE WOULD YOU EXEMPT IN ORDER TO GET THE REQUIRED MONEY
           TO MAKE UP THE DIFFERENCE MY POINT IS IT SOUND Z# GREAT TO SAY,
           LET'S ABOLISH THE INCOME TAX. BUT I WANT KNOW WHAT YOU WANT TO
           DO IN PLACE OF IT. SOME HAVE OFFERED PLANS HERE IN THE U.S.
           SENATE AND U.S. HOUSE THAT SAID, WELL, LET'S HAVE A TAX SYSTEM
           THAT TAXES WORK. YOU GO OUT AND WORK FOR A LIVING. WE WANT YOU
           TO PAY A TAFMKST BUT IF, ON THE OTHER HAND, YOU GET YOUR INCOME
           FROM CAPITAL GAINS OR INTEREST, YOU DON'T PAY A TAFMKST LET'S

           TAX ONLY ACTIVITYS FROM WORK AND LET'S COMBEMT INVESTMENT.
           WELL, THAT'S -- I GUESS THAT SOUNDS PRETTY GOOD IF ALL YOUR
           INCOME COMES FROM INVEFMTS. BUT GUESS WHO'D PAY TAXES AND HOED
           EA BE EXEMPT UNDER THAT SCHEME?
           WEALTHIEST PEOPLE WOULD BE EXEMPT AND THE WORKING PEOPLE WOULD
           BE PAYING TAXES. THAT'S A TAX ON WORK. MY POINT IS LET'S TAKE A
           LOOK AT SEEING IF WE CAN'T CHANGE THE CURRENT SYSTEM IN A WAY
           THAT BENEFITS AT LEAST A FAIR NUMBER OF THE AMERICAN PEOPLE.
           HERE'S WHAT I PROPOSE WE DO. NEARLY 30 COUNTRIES HAVE SOME KIND
           OF AN INCOME TAX SYSTEM IN WHICH MOST OF THE TAXPAYERS OR MANY

           OF THE TAXPAYERS DO NOT HAVE A REQUIREMENT TO FILE AN INCOME
           TAX RETURN. HERE'S HOW THEY DO IT AND HERE'S HOW I PROPOSE WE
           DO IT. EVERYONE WHO SIGNS IN AT WORK FOR A JOB FILLS OUT A W-4
           FARM. IT SAY, MY NAME IS SO-AND-SO. MY SOCIAL SECURITY IS X, Y,
           AND Z AND I HAVE THREE CHILDREN AND AM MARRIED, FILING JOINTLY
           OR WHATEVER THE INFORMATION WOULD CONCLUDE AND, THRFERT, YOUR
           EMPLOYER CALCULATES HOW MUCH INCOME TAX SHALL BE WITHHELD FROM
           YOUR WEEKLY OR MONTHLY WAGE. I PROPOSE AN APPROACH WHERE WE

           WOULD PUT A COUPLE OF EXTRA LINES ON THE W-4 FORM AND FOR A LOT
           OF MERNTION PERHAPS 60 MILLION TO 70 MILLION AMERICANS WITH A
           FEW EXTRA CHECKMARKS ON THE W-4 FARM, THEIR BHOLINGDE AT WORK
           WILL BECOME THEIR ACTUAL TAX LIABILITY AND THEY HAVE NO
           REQUIREMENT TO FILE A TAX RETURN. NO RETURN TO BE FILED AT ALL.
           THEREFORE, NO TRIPS TO THE POST OFFICE ON APRIL 15, NO WORRY
           ABOUT AUDITS BECAUSE YOU DON'T HAVE NUMBERS YOU'RE CALCULATING;
           IT IS SIMPLY, WHAT IS YOUR GROSS INCOME AND BASED ON WHAT YOU
           CHECKED ON YOUR W-4 FORM, WHAT COMPINDZE OF WITHHOLD SOMETHING
           NECESSARY?

           LET ME GIVE AN EXAMPLE OF HOW WE WOULD DO THAT. EARNING UP TO
           $100,000 IN WAGES -- THAT'S $50,000 FOR SINGLES -- AND ALSO
           FAMILIES UP WITH TO $100,000 IN WAGES PANDZ UP TO $2ERBGS 500
           IN OTHER INCOME OR $5,000 FOR A MARRIED COUPLE -- THAT IS,
           CAPITAL GAINS OR INTEREST, UP TO $5,000 WOULD BE TAX-FREE, NO
           TAX AT ALL ON THAT OTHER
{END: 1999/04/19 TIME: 14-00 , Mon.  106TH SENATE, FIRST SESSION}