II 110th CONGRESS 2d Session S. 3162 IN THE SENATE OF THE UNITED STATES June 19, 2008 Mr. Voinovich introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide tax relief to improve the competitiveness of United States corporations and small businesses, to eliminate tax incentives to move jobs and profits overseas, and for other purposes.

1.

Short title, etc

(a)

Short title

This Act may be cited as the Manufacturing, Assembling, Development, and Export in the USA Tax Act or the MADE in the USA Tax Act. (b)

Amendment of 1986 Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title, etc. TITLE I—Tax relief to improve the competitiveness of United States corporations and small businesses Sec. 101. Phased in reduction of maximum corporate income tax rate to 28 percent. Sec. 102. Modifications of deduction for income attributable to domestic production activities. Sec. 103. Small business expensing provisions made permanent. Sec. 104. Repeal of imposition of withholding on certain payments made to vendors by government entities. Sec. 105. Repeal of certain modifications to exclusion for citizens living abroad. TITLE II—Elimination of tax incentives to move jobs and profits overseas Subtitle A—Foreign tax credit modifications Sec. 201. Inclusion of all foreign-source royalties in passive category income in applying foreign tax credit limitation. Sec. 202. Separate application of foreign tax credit limitation to financial services income. Subtitle B—Classification of foreign entities Sec. 211. Treatment of foreign corporations managed and controlled in the United States as domestic corporations. Sec. 212. Entities with single owner treated as corporations. Subtitle C—Proper treatment and allocation of income and deductions Sec. 221. Limitation on treaty benefits for certain deductible payments. Sec. 222. Repeal of special source rules for inventory property. Sec. 223. Clarification of determination of foreign oil and gas extraction income. Sec. 224. Modifications of limitation on excess interest deductions of certain corporations. Sec. 225. Sense of Senate regarding certain reinsurance transactions with foreign related persons. Sec. 226. Study on effectiveness of transfer pricing rules with respect to inbound transactions. Subtitle D—Other provisions Sec. 231. Nonqualified deferred compensation from certain tax indifferent parties. Sec. 232. Restrictions on refundable child tax credit to taxpayers outside the United States. TITLE III—Other revenue measures Subtitle A—Accounting provisions Sec. 301. Repeal of lower of cost or market method of inventory. Sec. 302. Repeal of percentage depletion. Sec. 303. Amortization of goodwill and other intangibles. Subtitle B—Codification of economic substance doctrine Sec. 311. Codification of economic substance doctrine. Sec. 312. Penalties for underpayments. Subtitle C—Extension of certain expiring provisions Sec. 321. Extension of FUTA tax. Sec. 322. Permanent extension of custom user fees.