The Council for Citizens Against Government Waste (CCAGW), sent a letter to President Bush urging him to kill the Northeast Dairy Compact. More than 100 grassroots leaders from 35 states of CCAGW's Taxpayer Action Network signed the letter.

In the letter the group says they oppose any extension or expansion of dairy compacts because dairy compacts have long-term negative consequences for consumers and taxpayers. The group cited these reasons:

  • Compacts artificially raise milk prices.
  • Compacts impose a regressive tax on a basic food that disproportionately affects children and the poor.
  • Compacts encourage excess milk production.

These reasons combined, say the CCAGW, means that the higher milk prices set by dairy compacts hit Americans twice — once at the store in a hidden tax, and again in higher tax burdens to cover the cost of government support programs.