The Republican majority has been successful in winning the votes in order to get legislation passed. I don’t think that they have been successful in getting the American people to believe that they have been fair to the minority or fair to the working people or fair to the manufactures that create jobs here. I don’t think that they have been fair when it comes to having some sense of patriotism or some sense of pride in saying ‘Made in the USA.’
They say this legislation creates jobs, but not for Americans, it creates jobs for people overseas.
It’s labeled the “American Jobs Creation Act” and, guess what? – Nothing about jobs. He would have us believe that the reason for this legislation is to reform the tax code, to bring it up to date. But I have heard this type of Republican talk before – “we have to pull it up by its roots,” they say.
That is only when we had thousands of pages in the tax code but, in the middle of the night, they bring us a bill that is 400 pages long and probably nobody in the House has seen it yet. Don’t call this a tax reform bill and don’t say that you are reforming the system. The fact is if you wanted to do what this bill was suppose to do, and that is to remove the old subsidy, all you would do is remove the subsidy and you wouldn’t give a tax cut for $150 billion dollars.
You can put lipstick on a pig but you can’t call it a lady! This is a lousy bill and it has nothing to do with reform.
About this one day that someone is entitled to get their priorities. The Republican leaders sent the word out that every lobbyist in Washington has one day to get his favorite thing in this bill. It is just unfortunate that the American people didn't get their one day to get jobs in the bill.
Summary of Motion to Recommit to H.R. 4520, FSC/ETI
The motion to recommit strikes the reported bill (except Title VII) and inserts the following provisions:
1. The motion to recommit would repeal the exclusion for extraterritorial income, effective January 1, 2005. The motion contains binding contract relief and general transition relief that retains 80% of the benefit for 2005 and 60% for 2006.
2. The motion provides a deduction for a portion of the income attributable to U.S. production activities. U.S. production activities are defined as activities in producing goods that were eligible for the FSC/ETI benefits if exported. This includes movies and software. The deduction applies to both corporate and non-corporate taxpayers. The deduction is phased in, ultimately reaching 10%. As a result, there is a 10% across-the-board rate reduction for income from these productive activities for both corporate and non-corporate taxpayers. Taxpayers at the maximum tax rate will receive a 3.5 point reduction.
3. The motion to recommit extends the current level of small business expensing identical to the extension included in the reported bill. The motion also includes all of the subchapter S corporate reform and simplification changes that are contained in reported bill.
4. The motion to recommit extends the research credit and other expiring tax provisions in a form identical to that included in the reported bill.
5. The motion includes a permanent deduction for State and local general sales taxes. Taxpayers would have the election of deducting income taxes or sales taxes. The amount of the deduction for sales taxes would be computed under pre-1986 laws. It would not be limited to the amount determined under a table, as in the reported bill, and it would not be subject to a cap, as in the reported bill.
6. The motion includes a temporary reduction in tax on repatriated earnings identical to the provision in the Senate bill.
7. The motion to recommit is revenue neutral and includes the following offsets:
A. The tax shelter provisions adopted on a bipartisan basis by the Senate.
B. Permanent extension of IRS and custom user fees identical to provisions in the reported bill.
C. Provisions preventing corporations from avoiding tax by reincorporating overseas.
D. Provisions preventing individuals from renouncing their citizenship for tax avoidance purposes identical to the provisions passed by the Senate.
E. Restructuring ethanol incentives identical to provisions in the reported bill.
F. Provisions addressing fuel tax evasion identical to provisions in the reported bill.
G. Provisions adding two vaccines to the list of taxable vaccines, identical to provisions in the reported bill.
H. Provisions preventing foreign entities from avoiding U.S. taxes through treaty-shopping.