[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 705 Introduced in House (IH)]






108th CONGRESS
  2d Session
H. RES. 705

 Urging the President to resolve the disparate treatment of direct and 
   indirect taxes presently provided by the World Trade Organization.


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                    IN THE HOUSE OF REPRESENTATIVES

                              July 7, 2004

 Mr. English submitted the following resolution; which was referred to 
                    the Committee on Ways and Means

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                               RESOLUTION


 
 Urging the President to resolve the disparate treatment of direct and 
   indirect taxes presently provided by the World Trade Organization.

Whereas the World Trade Organization does not permit direct taxes, such as the 
        corporate income tax, to be rebated or reduced on exports;
Whereas indirect taxes, such as a value added tax, can be and are rebated on 
        exports in other countries;
Whereas the distinction by the World Trade Organization between direct and 
        indirect taxation is arbitrary and may induce economic distortions among 
        nations with disparate tax systems; and
Whereas United States firms pay a high corporate tax rate on their export income 
        and many foreign nations are allowed to rebate their value added taxes, 
        thereby giving exporters in nations imposing value added taxes a 
        competitive advantage over American workers: Now, therefore, be it
    Resolved, That the President--
            (1) within 120 days after the convening of the 109th 
        Congress, and annually thereafter, should report to Congress on 
        progress in pursuing multilateral and bilateral trade 
        negotiations to eliminate the barriers described in section 
        2102(b)(15) of the Trade Act of 2002; and
            (2) within 120 days after convening the 109th Congress, 
        should report to Congress on--
                    (A) proposed alternatives to the disparate 
                treatment of direct and indirect taxes presently 
                provided by the World Trade Organization; and
                    (B) other proposals for redressing the tax 
                disadvantage to United States businesses and workers, 
                either by changes to the United States corporate income 
                tax or by the adoption of an alternative, including--
                            (i) assessing the impact of corporate tax 
                        rates,
                            (ii) a system based on the principal of 
                        territoriality, and
                            (iii) a border adjustment for exports such 
                        as is already allowed by the World Trade 
                        Organization for indirect taxes.
                                 <all>