[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 88 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                 H. R. 88

 To amend the Internal Revenue Code of 1986 to enhance tax equity and 
    fairness by imposing an alternative minimum tax on corporations 
  importing products into the United States at artificially inflated 
                                prices.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

Mr. Kanjorski introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to enhance tax equity and 
    fairness by imposing an alternative minimum tax on corporations 
  importing products into the United States at artificially inflated 
                                prices.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ALTERNATIVE MINIMUM TAX ON CORPORATIONS IMPORTING PRODUCTS 
              INTO THE UNITED STATES AT ARTIFICIALLY INFLATED PRICES.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to determination of tax liability) is amended by 
adding at the end thereof the following new part:

``PART VIII--ALTERNATIVE MINIMUM TAX ON CORPORATIONS IMPORTING PRODUCTS 
         INTO THE UNITED STATES AT ARTIFICIALLY INFLATED PRICES

``Sec. 59B. Alternative minimum tax on corporations importing products 
                            into the United States at artificially 
                            inflated prices.

``SEC. 59B. ALTERNATIVE MINIMUM TAX ON CORPORATIONS IMPORTING PRODUCTS 
              INTO THE UNITED STATES AT ARTIFICIALLY INFLATED PRICES.

    ``(a) Imposition of Tax.--In the case of a corporation to which 
this section applies, there is hereby imposed an alternative minimum 
tax equal to 5 percent of net business receipts of the corporation for 
the taxable year.
    ``(b) Taxpayers to Which Section Applies.--This section shall apply 
to any corporation, foreign or domestic, if--
            ``(1) gross sales in the United States during the tax year 
        of parts or products manufactured by the corporation, or any 
        subsidiary or affiliate controlled by the corporation, exceeded 
        $10,000,000,
            ``(2) during that same tax year parts or products 
        manufactured by the corporation, or any subsidiary or affiliate 
        controlled by the corporation, with a customs value in excess 
        of $10,000,000 were imported into the United States, and
            ``(3) its tax obligation under this section exceeds its 
        total tax obligation under all other sections of the Internal 
        Revenue Code of 1986.
    ``(c) Credit For Taxes Paid.--There shall be a nonrefundable credit 
against the taxes owed under this section equal to the total of all 
other taxes paid by the corporation under the Internal Revenue Code of 
1986.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Net business receipts.--The term `net business 
        receipts' means the value of all parts or products sold in the 
        United States, excluding--
                    ``(A) the value of parts or products sold for 
                export,
                    ``(B) expenses paid for parts or products produced 
                in the United States,
                    ``(C) expenses paid for services performed in the 
                United States, and
                    ``(D) amounts paid for income, sales or use taxes 
                imposed by any State, or political subdivision thereof, 
                or by the District of Columbia, Puerto Rico, Guam or 
                the Virgin Islands.
            ``(2) Subsidiary or affiliate controlled by the 
        corporation.--An entity shall be considered to be a `subsidiary 
        or affiliate controlled by the corporation' if the corporation 
        owns 5 percent or more of any class of stock of the entity or 
        if the corporation exercises control over a majority of the 
        board of directors of the entity.''
    (b) Clerical Amendment.--The table of parts for such subchapter A 
is amended by adding at the end thereof the following new item:

                              ``Part VIII. Alternative minimum tax on 
                                        corporations importing products 
                                        into the United States at 
                                        artificially inflated prices.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

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