WASHINGTON – House Democratic Whip Steny Hoyer (MD) released the following statement after meeting with representatives of manufacturing companies and organized labor to discuss the foreign sales corporation/extraterritorial income (FSC/ETI) issue:
“Legislative action is needed this year to avoid nearly $4 billion in trade-related sanctions on a variety of U.S. industries, mainly agricultural products, metals, machinery and electrical equipment. This week, I met with representatives of manufacturers and organized labor about how to avoid those sanctions, and how to create and keep good manufacturing jobs in the United States. I am going to support and co-sponsor the bipartisan Crane-Rangel bill, H.R. 1769, because it goes to the heart of what the FSC/ETI problem is about for this nation.
“Congressmen Crane, Rangel and Manzullo have come up with a solid proposal with strong bipartisan support, but I don’t feel that their bill is mutually exclusive of dealing with other vital international tax issues that must be dealt with and may eventually be contained in what Chairman Thomas is proposing. It’s my understanding that many of the companies that support the Thomas Proposal right now do so because of other provisions he is considering adding and that they would actually benefit from Crane-Rangel as well.
“I understand Chairman Thomas has outlined his package, and is considering adding an additional $100 billion without getting at the heart of the domestic manufacturing issue. I have every hope that he will see the strong bipartisan support that H.R. 1769 has and will decide to work to address the problem rather than weigh down the House proposal with additional costs and make it difficult to reconcile with bipartisan efforts underway in the Senate. Too much is at stake not to act.
“The Crane-Rangel bill provides a transition to phase out the current FSC/ETI provisions and uses the savings to reduce taxes on domestic manufacturers, creating incentive to keep and create jobs in the United States. A healthy manufacturing sector is vital to a strong economy, the creation of jobs and our nation’s security, so it is the responsibility of Congress to be a part of the solution – and act in a timely manner. I look forward to working with Members on both sides of the aisle to move a bipartisan and balanced legislative solution forward soon after the Congress returns from the August District Work Period in September.”