Oct. 8, 2004
INTELLIGENCE COMMITTEE REORGANIZATION
Mr. CHAMBLISS. Mr. President, I rise today to speak on H.R. 4520, the American Jobs Creation Act of 2004.
This important legislation attempts to comply with the World Trade Organization, WTO, rulings on the Foreign Sales Corporation, FSC, Extraterritorial Income, ETI, benefit in order to prompt the European Union to rescind trade tariffs currently placed on United States exporters. It would repeal an export provision in the United States tax code that has been ruled an unfair subsidy and therefore does not comply with the WTO. In addition this bill seeks to preserve jobs and production activities in the United States via the simplification of international tax laws and a mix of investment incentives. A $10 million tobacco buyout, minus the Food and Drug Administration's regulation, is also incorporated within this bill.
This bill would replace the current export subsidy that has been ruled unfair by the WTO with a new $77 billion tax break on manufacturing income. Companies will also be able to exclude 9 percent of their manufacturing profits from taxation and multinational companies will receive $43 billion in a variety of tax cuts on their overseas income. These tax breaks and incentives are instrumental in our attempt to comply with the WTO while ensuring American jobs stay at home.
Also included in this package is a landmark change. This bill contains provisions to terminate the Federal tobacco quota program. This tobacco quota program was created during the 1930s and has provided controls on the production of tobacco for decades. And it has worked well. However, since 1998 tobacco quotas have been cut by over 50 percent leaving tobacco farmers with no where to turn. This package provides compensation for those farmers and quota holders who have lost over half of their assets through no fault of their own.
Compensation of $7 to quota owners and $3 to producers based on the 2002 effective quota level is provided in this package while at the same time it keeps producers free of potential burdensome regulations advocated by some in the industry. I am pleased that the funding for this buyout comes at no cost to the taxpayer without granting authority to the FDA to regulate tobacco and tobacco products.
In terms of the economy, this legislation will have a significant impact on rural Georgia. Mr. President, $607 million will be provided over a ten year period. Additionally growers can continue to produce tobacco without government constraints and be competitive in the world tobacco market.
I support the passage of this significant legislation because it will benefit the manufacturing industry in Georgia while ensuring American jobs are not lost overseas due to burdensome and unfair tax regulations. I also support the passage of this bill because of the unregulated FDA tobacco buyout provisions that compensate tobacco farmers for assets that have been plundered by the Federal Government.
It is because of my son's wedding this weekend in Georgia that I regret that I will not be able to actually vote on this legislation. However, if I was in attendance and able to cast my vote on H.R. 4520, it would be in support of this bill.