[Congressional Record Volume 141, Number 14 (Tuesday, January 24, 1995)]
[Extensions of Remarks]
[Page E163]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                             [[Page E163]]

   INTERNAL REVENUE CODE SECTION 911--FOREIGN EARNED INCOME EXCLUSION

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                            HON. BILL ARCHER

                                of texas

                    in the house of representatives

                        Tuesday, January 24, 1995
  Mr. ARCHER. Mr. Speaker, I am introducing the legislation to 
significantly increase and index the amount of earned income U.S. 
taxpayers working overseas may exclude from Federal income taxation.
  Currently U.S. taxpayers working overseas may exclude up to $70,000 
of earned income annually from Federal income taxation.
  As contemplated in the Economic Recovery Act of 1981, the foreign 
income exclusion originally was scheduled to increase to $95,000. 
However, due to revenue considerations, the intended increases never 
became law.
  The current $70,000 exclusion is not indexed for inflation and is 
woefully inadequate. It has the effect of discouraging U.S. taxpayers 
from working overseas and this puts U.S. companies doing business 
overseas at a competitive disadvantage as compared to their foreign 
competitors.
  The legislation I am introducing today would immediately increase the 
foreign earned income exclusion to $100,000 from $70,000 and would 
index the $100,000 amount to allow it to keep pace with inflation. The 
increased foreign earned income exclusion will encourage U.S. taxpayers 
to seek employment with U.S. companies overseas, which in turn will 
help increase U.S. exports and jobs in the United States.
   The legislation benefits all segments of our society and I welcome 
support of it from Members on both sides of the aisle.


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