S 3816 - Tax Law Amendments - National Key Vote
Issues Related to S 3816
NOTE: THIS IS A VOTE TO INVOKE CLOTURE ON A MOTION TO PROCEED, WHICH SENDS THE LEGISLATION TO THE FLOOR OF THE SENATE FOR DEBATE AND AMENDMENT. A MOTION TO PROCEED ALONE REQUIRES A MAJORITY FOR APPROVAL. HOWEVER, THE MOTION CAN BE FILIBUSTERED, AND WHEN THIS OCCURS, A CLOTURE VOTE IS NECESSARY TO VOTE ON THE MOTION TO PROCEED. A THREE-FIFTHS MAJORITY OF THE SENATE IS NECESSARY TO INVOKE CLOTURE.
Cloture Not Invoked
Sept. 28, 2010(Key vote)
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Title: Tax Law Amendments
Vote on a motion to invoke cloture on a bill that prohibits tax deductions, losses, and credits for transactions that result from moving business operations outside of the U.S., expands income tax liability on controlled foreign corporations for offshored income, and establishes tax incentives for employers that replace non-U.S. employees with U.S. employees.
- Prohibits tax deductions, losses, or credits for any transaction (or series of transactions) that is the result of the individual reducing or eliminating the operation of a trade or business within the U.S. in connection with the start up or expansion of such trade or business by the taxpayer outside of the U.S. (Sec. 201).
- Expands income tax liability on controlled foreign corporations (26 USC 951-965) to include "imported property offshored income," meaning income (profits, commissions, fees, etc.) that is received from a controlled foreign corporation and derived in connection with any of the following (Sec. 202):
- Manufacturing, producing, growing, or extracting imported property;
- The sale, exchange, or other disposition of imported property; or
- The lease, rental, or licensing of imported property.
- Defines "imported property" as property that is imported into the U.S. by an offshored controlled foreign corporation or a related individual (Sec. 202).
- Exempts foreign oil and gas extraction income, or any foreign oil related income (26 USC 907(c)), from the aforementioned expansion of income tax liability on controlled foreign corporations (Sec. 202).
- Exempts employers from the excise tax for old age, survivors, and disability insurance (26 USC 3111) with respect to an individual who meets the following criteria (Sec. 101):
- The individual commenced employment after September 21, 2010 and before September 22, 2013;
- The employer certifies that the individual has been employed to replace another employee who was not a citizen or lawfully present resident of the U.S. and "substantially all" of whose services for the employer were performed outside of the U.S.;
- "Substantially all" of the services the individual will perform for the employer will take place within the U.S.; and
- The individual is not an individual described in 26 U.S.C. 51(i)(1).
- Specifies that the exemption from the excise tax shall begin on the hiring date of the applicable individual and shall be in effect for 2 years thereafter (Sec. 101).