Washington, DC – Congressman Ron Paul agreed to cosponsor a bill offered by JC Watts to help farmers who were found to have been discriminated against by the United States Department of Agriculture. The bill would insure that the payments to the farmers would not be subject to federal taxation.

“It would make no sense at all for any person who won a law suit against the federal government to be forced to pay federal taxes on the proceeds of that judgment,” Paul said.

In the current instance, African-American farmers successfully sued the USDA for discrimination dating back some two decades. The class action suit resulted in each plaintiff receiving a judgment in the amount of $50,000. HR 2233 would exempt such judgments from federal taxation. “Simply, we need to get farmers outside of the grasp of the long arm of the IRS,” Paul stated.

The 14th district of Texas is listed as containing the fifth largest contingent of African-American farmers of any district in the United States. “I am happy to become a cosponsor of Congressman Watts’ bill to reduce the tax burden on my constituents,” concluded Paul.

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