000218 USDA Food User Fees Are “Taxes In Disguise”

Washington - Requiring user fees to fund meat, poultry and egg inspections are “taxes in disguise” and have very little support from Congress, according to the Grocery Manufacturers of America.

GMA responded to the Clinton Administration's announced budget plan for the U.S. Department of Agriculture's Food Safety and Inspection Service, which calls for $534 million in user fees to fund those inspection services.

Mary Sophos, GMA Senior Vice President for Government Affairs, said the annual user fee request has little or no support on Capitol Hill and is a political non-starter.

“Congress has continually rejected user fee proposals in the past, which clearly demonstrates that lawmakers are not interested in raising taxes on food companies,” said Sophos. “Food safety inspections represent a fundamental regulatory/enforcement mission of the federal government and benefit the public at large, not just the food industry. These kinds of proposals distract all of our efforts to bring about sufficient funding for food safety operations in a timely fashion.”

GMA has noted in past communications with the Administration that some consumer groups and Members of Congress believe that requiring food companies to pay user fees -- while at the same time being regulated by the federal government -- represents a conflict of interest.

“These food user fees are unauthorized and would be used to pay for services that the federal government provides to ensure the safety of the food supply,” said Sophos. “Food user fees are merely a tax and would likely be challenged in a court of law.”

GMA continues to review the budget proposal in detail, and will issue more specific comments during the upcoming budget cycle.

GMA is the world's largest association of food, beverage and consumer product companies. With U.S. sales of more than $450 billion, GMA members employ more than 2.5 million workers in all 50 states. The organization applies legal, scientific and political expertise from its member companies to vital food, nutrition and public policy issues affecting the industry. Led by a board of 44 Chief Executive Officers, GMA speaks for food and consumer product manufacturers at the state, federal and international levels on legislative and regulatory issues. The association also leads efforts to increase productivity, efficiency and growth in the food, beverage and consumer products industry.

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