[Congressional Record Volume 140, Number 102 (Friday, July 29, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 29, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             INTRODUCTION OF THE FOREIGN TAX COMPLIANCE ACT

                                 ______


                            HON. ALAN WHEAT

                              of missouri

                    in the house of representatives

                         Friday, July 29, 1994

  Mr. WHEAT. Mr. Speaker, I am proud to join my colleague from 
Missouri, Majority Leader Gephardt, and Appropriations Committee 
Chairman David Obey introducing the Foreign Tax Compliance Act--
legislation to provide a greater measure of fairness and good sense to 
our Nation's tax laws.
  One of the central goals of Government policy--particularly tax 
policy--should be promoting investment in our people and in our 
businesses here at home.
  For too long, though, our tax policies have had it backward--
rewarding U.S. companies that move overseas and granting unfair tax 
giveaways to foreign subsidiaries in this country.
  Today, for example, over 70 percent of foreign-based corporations in 
the United States pay no Federal income taxes.
  Our Nation's tax policies have effectively encouraged disinvestment 
at home and placed our own Main Street businesses at a competitive 
disadvantage in the marketplace.
  American businesses shouldn't be forced to compete against foreign 
subsidiaries here that don't pay their fair share of taxes. And 
American workers shouldn't be left out in the cold because our tax laws 
encouraged companies to ship jobs away and ship products back.
  The Foreign Tax Compliance Act will help reorient our Nation's tax 
laws.
  It will attack the current tax breaks that now allow multinationals 
in the United States to pay virtually no taxes here. And it will close 
loopholes that encourage U.S. companies to profit from moving 
production overseas, and exporting American jobs abroad.
  Mr. Speaker, we have to change our tax laws to encourage business 
investment here at home--not to some faraway shore. We have to provide 
incentives to invest in our people, in business, in new technologies in 
Missouri, and around the country.
  The Foreign Tax Compliance Act will help advance these twin goals. It 
will begin to restore equity and fairness in our tax laws by helping 
ensure that our Nation's tax policy levels the playing field here and 
stops providing perverse incentives to relocate companies and jobs 
away.
  In short, Mr. Speaker, this bill will help put our tax policies back 
on the side of American workers.

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