[Congressional Record Volume 145, Number 23 (Tuesday, February 9, 1999)]
[Extensions of Remarks]
[Page E180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




TO PERMANENTLY EXTEND THE EXCEPTION FROM SUBPART F FOR ACTIVE FINANCING 
                                 INCOME

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                       Tuesday, February 9, 1999

  Mr. NEAL. Mr. Speaker, I would like to associate myself with the 
remarks of my colleague, Mr. McCrery. Today, Mr. McCrery and I are 
introducing legislation to permanently extend the exception from 
subpart F for active financing income earned from overseas business. 
The growing interdependence of world financial markets has highlighted 
the need to rationalize U.S. tax rules that undermine the ability of 
our financial services industry--such as banks, insurance companies, 
insurance brokers, and securities firms--to compete in the 
international arena.
  The provision permits financial services to act like other U.S. 
industries doing business abroad and defer tax on the earnings from the 
active operation of their foreign subsidiaries until such earnings are 
returned to the United States. The permanent extension of this 
provision takes an important step towards making the U.S. financial 
services industry more competitive in international markets.
  I urge my colleagues to support this legislation and to address this 
issue prior to the expiration of the temporary provision.

                          ____________________