American Jobs Creation Act of 2004 - Amendments -- (House of Representatives - June 17, 2004)
BREAK IN TRANSCRIPT
Mr. UDALL of Colorado. Mr. Speaker, Congress definitely needs to respond to the retaliatory tariffs imposed on American exports because of the World Trade Organization's rulings addressed by this bill.
But, we do not need to pass the bill as it stands-in fact, we shouldn't.
The bill is unbalanced and excessive. It includes provisions that could provide new incentives for American companies to move overseas. I am concerned that it could allow companies to simultaneously outsource much of the work needed to make a product and at the same time benefit from a tax break for "domestic production."
The bill is unduly tilted toward large companies rather than the small businesses that are the source of most jobs in our country. It also includes billions of dollars worth of new narrow special-interest tax breaks, as well as other provisions that supposedly will raise revenue to offset the corporate tax incentives. Those offsets include provisions for outsourcing IRS debt collection, which I think is a bad idea, and creating additional paperwork for charitable contributions.
Of course, the bill also includes desirable provisions. If they stood alone, or were part of a bill that otherwise was acceptable, I would be happy to vote for the legislation. And I did support the motion to recommit, which would have greatly improved the bill.
If the motion to recommit had been adopted, the result would have been to provide an incentive to manufacturers to keep jobs in the United States by reducing corporate tax rates for domestic production by 3.5 percent.
The motion to recommit also would have removed the provisions that provide incentives to move jobs overseas and the targeted special interest provisions. It would have provided better treatment for small businesses, farming cooperatives, and domestic manufacturers.
At the same time, the motion to recommit would have retained such desirable provisions as those extending small business expensing, the research and development tax credit, and renewable energy credits as well as the same temporary foreign income repatriation provisions as those in the Senate-passed version of this legislation.
Unfortunately, the motion to recommit was not successful, and so I cannot support this bill in its present form.
I expect that a conference committee will be appointed to resolve differences between this bill and corresponding legislation passed by the Senate. I hope that this will result in a revised and improved version that deserves enactment.
BREAK IN TRANSCRIPT