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...suits against tobacco processing taxes. In Detroit, Denver and Kansas City Federal judges restrained the Government's tax collections. Processing taxes on wheat, corn, hogs, cotton, tobacco were contested. A temporary injunction against the operation of the Bankhead Cotton Act was issued in the Texas courts. All told, AAA found itself facing 705 court challenges, which meant that 705 processors were eager to maintain before the law that the Christmas gifts farmers have been getting do not come from Santa Claus, that processing "taxes" are but white whiskers to conceal the fact that one group of citizens are putting...

Author: /time Magazine | Title: FARMERS: Acreage & Allies | 8/12/1935 | See Source »

...reason for these numerous challenges was that the NRA Supreme Court decision hinted that AAA might also be unconstitutional. Another reason was the attempt made to have the AAAmendments before Congress (see p. 10) include a provision to forbid suits for recovery of processing taxes even if illegally collected. The courts, as well as the litigants, were stirred to action by the prospect that suits for recovery might be forbidden. Said...

Author: /time Magazine | Title: FARMERS: Acreage & Allies | 8/12/1935 | See Source »

...income from processing taxes cut off would prove a knock-out blow to the Roosevelt farm policy. The packers suing in Chicago alone pay taxes of some $95,000,000 a year. All told, processing collections reached $495,000,000 in fiscal 1935. Under its old contracts with farmers, AAA has to complete its benefit payments regardless of whether processing taxes cease...

Author: /time Magazine | Title: FARMERS: Acreage & Allies | 8/12/1935 | See Source »

Last week AAA was counting on farmers as allies to help save it from that misfortune. Since farmers naturally want Christmas presents in their stockings, whether AAA gets their presents from Santa Claus or from highway robbery is a secondary question. Therefore last week farmers and AAA were working hand in glove to discourage legal attacks upon processing taxes...

Author: /time Magazine | Title: FARMERS: Acreage & Allies | 8/12/1935 | See Source »

...penalties and bleed him severely. In western Kansas farmers did their part to discourage tax suits by declaring a boycott on a milling company. A group of Texans headed by Clifford Day, who led the farmers' march on Washington last May, went to Washington with expenses paid by AAA and returned home: 1) to stir up farmers to fight the Bankhead Act injunction; 2) to start a farm movement to reduce tariffs in retaliation against manufacturers who refused to share governmental favors with agriculture. This tariff opposition, said AAAdministrator Davis, was quite "natural," thus tacitly approving a bill introduced...

Author: /time Magazine | Title: FARMERS: Acreage & Allies | 8/12/1935 | See Source »

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