Summary
Pasour elucidates the economic and legal implication of the buyout, consequent to a corporate-tax bill passed by Congress last October, which enables owners of tobacco quotas and farmers who produce the crop in the US, receive cash payments totaling $10.1 billion as a quid pro quo for accepting an end to the tobacco price-support program. He remarks that the tobacco quota buyout is a prime example of favor seeking--the term used by economists when referring to actions taken by individuals and groups seeking to use the political process to plunder the wealth of others.
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Extract
The Tobacco-Quota Buyout: More Legal Plunder
Critics of tobacco use (and others) have been calling for an end to all government support to the industry for several decades. Now, under the corporate-tax bill passed by Congress last October, owners of tobacco quotas and farmers who produce the crop in the United States will receive cash payments totaling $10.1 billion as a quid pro quo for accepting an end to the tobacco price-support program. This linking of compensation to termination of the tobacco production cartel created buyout fever in North Carolina, Kentucky, and other major tobacco-producing states.
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