462 GENERAL FARM PROGRAM 



between the $19 support and the price in the market. We will assume 

 that the farmer should have $20,000 for those hogs and he only gets 

 $14,000 in the market place. That is a diiference of $6,000. Of course, 

 the farmer selling for $14,000 will not have his cost of production 

 covered when you consider that corn will still be under the support 

 loan program and really taken out of the picture as far as cheap feed 

 is concerned. If that farmer is going to continue in business, he will 

 have to have a check from the Federal Government for $6,000 to keep 

 going and get up to his support standard income. Is that not correct? 



Mr. Kluste. That is right. That is the suggestion, as I understand it. 



Mr. Andresen. That looks like a pretty good scheme. We are only 

 taking one commodity as far as the whole picture is concerned. The 

 thing that disturbs me is where we are going to get all this mony to 

 pay the bill. We have figured and I have estimated about 2i/^ billion 

 dollars on milk if we are to treat all of the dairy farmers of the country 

 the same. I do not think the Secretary's plan contemplates that for 

 the Midwest dairy farmers. There he deals with a national average 

 of $4.22 a hundred for milk. We have a national average now, I think, 

 pretty close to that, but the farmers out through the Midwest, includ- 

 ing Minnesota, Iowa, and Wisconsin, are only getting about $2.65 

 under the national average for 3.5 milk. 



When I asked the Secretary if he intended to do anything about the 

 midwestern farmers where most of the milk went into manufactured 

 products, he said that that was a matter that he would have to think 

 over. If you add on $.500,000,000 to support the price of hogs, $2,500,- 

 000,000 for supporting the price of millv, and then you go to eggs, 

 ])oultry, meat, and all these other items. It comes to a staggering 

 sum. 



The farm income, as far as the farmers of the country are con- 

 cerned, including dairy farmers, has slipped off tremendously in 

 the last 6 montlis. Is that not correct? 



Mr. Kline. Yes, that is right. 



Mr. Andresex. So we cannot expect to collect much more taxes from 

 the farmers. In fact, the tax income from the farmers of the country 

 will be less for 1949 and 1950 than it was in 1948. Is that a correct 

 assumption ? 



Mr. Kline. Yes, sir. Every cak'ulati(jn of net farm income for 

 this year is down compared with last year. 



Mr. Andresen. x\.s far as general business is concerned, if we are to 

 believe what we read in the papers, it has dropped off and the profits 

 in many cases will be less than they were in 1948. Consequently, there 

 will be less tax income from that source. 



We have appropriations here that, before we get through with the 

 first session of the Eighty-first Congress, will run close to $45,000,000,- 

 000, and it is quite apparent that we will go into a period of deficit 

 spending. Can you see where we can increase the taxes on any part 

 of our American economy to raise 5 or 10 billion dollars additional 

 to carry out the Brannan proposal ? 



Mr. Kline. We have no suggestion to make with regard to the in- 

 crease of taxes at this time. The fact is, we think this might not be 

 the proper time to increase taxes. We feel a little more positively 

 about it than that, as a matter of fact. 



Mr. Granger. Did you think last year was a time to make increases 

 in taxes? 



