[Congressional Record Volume 149, Number 44 (Wednesday, March 19, 2003)]
[House]
[Pages H1970-H1976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX RELIEF, SIMPLIFICATION, AND EQUITY ACT OF 2003
Mr. THOMAS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1308) to amend the Internal Revenue Code of 1986 to end
certain abusive tax practices, to provide tax relief and
simplification, and for other purposes.
The Clerk read as follows:
H.R. 1308
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tax
Relief, Simplification, and Equity Act of 2003''.
(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 of this Act
is as follows:
Sec. 1. Short title; references; table of contents.
TITLE I--ENDING ABUSIVE TAX PRACTICES
Sec. 101. Individual expatriation to avoid tax.
Sec. 102. Suspension of tax-exempt status of terrorist organizations.
Sec. 103. Expressing the sense of the Congress that tax reform is
needed to address the issue of corporate expatriation.
TITLE II--RELIEF FOR FOREIGN SERVICE AND ASTRONAUTS
Sec. 201. Special rule for members of Foreign Service in determining
exclusion of gain from sale of principal residence.
Sec. 202. Tax relief and assistance for families of astronauts who lose
their lives on a space mission.
TITLE III--HEALTH PROVISIONS
Sec. 301. Vaccine tax to apply to hepatitis A vaccine.
Sec. 302. Expansion of human clinical trials qualifying for orphan drug
credit.
TITLE IV--FOREST CONSERVATION ACTIVITIES
Sec. 401. Pilot project for forest conservation activities.
TITLE V--RELIEF AND EQUITY FOR SMALL BUSINESSES
Sec. 501. Simplification of excise tax imposed on bows and arrows.
Sec. 502. Capital gain treatment under section 631(b) to apply to
outright sales by landowners.
Sec. 503. Repeal of excise tax on fishing tackle boxes.
Sec. 504. Treatment under at-risk rules of publicly traded nonrecourse
debt.
TITLE VI--EQUITY FOR FARMERS
Sec. 601. Special rules for livestock sold on account of weather-
related conditions.
Sec. 602. Income averaging for farmers not to increase alternative
minimum tax.
Sec. 603. Payment of dividends on stock of cooperatives without
reducing patronage dividends.
TITLE VII--PROTECTION OF SOCIAL SECURITY
Sec. 701. Protection of social security.
TITLE I--ENDING ABUSIVE TAX PRACTICES
SEC. 101. INDIVIDUAL EXPATRIATION TO AVOID TAX.
(a) Expatriation To Avoid Tax.--
(1) In general.--Subsection (a) of section 877 (relating to
treatment of expatriates) is amended to read as follows:
``(a) Treatment of Expatriates.--
``(1) In general.--Every nonresident alien individual to
whom this section applies and who, within the 10-year period
immediately preceding the close of the taxable year, lost
United States citizenship shall be taxable for such taxable
year in the manner provided in subsection (b) if the tax
imposed pursuant to such subsection (after any reduction in
such tax under the last sentence of such subsection) exceeds
the tax which, without regard to this section, is imposed
pursuant to section 871.
``(2) Individuals subject to this section.--This section
shall apply to any individual if--
``(A) the average annual net income tax (as defined in
section 38(c)(1)) of such individual for the period of 5
taxable years ending before the date of the loss of United
States citizenship is greater than $122,000,
``(B) the net worth of the individual as of such date is
$2,000,000 or more, or
``(C) such individual fails to certify under penalty of
perjury that he has met the requirements of this title for
the 5 preceding taxable years or fails to submit such
evidence of such compliance as the Secretary may require.
In the case of the loss of United States citizenship in any
calendar year after 2003, such $122,000 amount shall be
increased by an amount equal to such dollar amount multiplied
by the cost-of-living adjustment determined under section
1(f)(3) for such calendar year by substituting `2002' for
`1992' in subparagraph (B) thereof. Any increase under the
preceding sentence shall be rounded to the nearest multiple
of $1,000.''.
(2) Revision of exceptions from alternative tax.--
Subsection (c) of section 877 (relating to tax avoidance not
presumed in certain cases) is amended to read as follows:
``(c) Exceptions.--
``(1) In general.--Subparagraphs (A) and (B) of subsection
(a)(2) shall not apply to an individual described in
paragraph (2) or (3).
``(2) Dual citizens.--
``(A) In general.--An individual is described in this
paragraph if--
``(i) the individual became at birth a citizen of the
United States and a citizen of another country and continues
to be a citizen of such other country, and
``(ii) the individual has had no substantial contacts with
the United States.
``(B) Substantial contacts.--An individual shall be treated
as having no substantial contacts with the United States only
if the individual--
``(i) was never a resident of the United States (as defined
in section 7701(b)),
``(ii) has never held a United States passport, and
``(iii) was not present in the United States for more than
30 days during any calendar year which is 1 of the 10
calendar years preceding the individual's loss of United
States citizenship.
``(3) Certain minors.--An individual is described in this
paragraph if--
``(A) the individual became at birth a citizen of the
United States,
``(B) neither parent of such individual was a citizen of
the United States at the time of such birth,
``(C) the individual's loss of United States citizenship
occurs before such individual attains age 18\1/2\, and
``(D) the individual was not present in the United States
for more than 30 days during any calendar year which is 1 of
the 10 calendar years preceding the individual's loss of
United States citizenship.''.
(3) Conforming amendment.--Section 2107(a) is amended to
read as follows:
``(a) Treatment of Expatriates.--A tax computed in
accordance with the table contained in section 2001 is hereby
imposed on the transfer of the taxable estate, determined as
provided in section 2106, of every decedent nonresident not a
citizen of the United States if the date of death occurs
during a taxable year with respect to which the decedent is
subject to tax under section 877(b).''.
(b) Special Rules for Determining When an Individual is no
Longer a United States Citizen or Long-Term Resident.--
Section 7701 (relating to definitions) is amended by
redesignating subsection (n) as subsection (o) and by
inserting after subsection (m) the following new subsection:
``(n) Special Rules for Determining When an Individual is
no Longer a United States Citizen or Long-Term Resident.--An
individual who would not (but for this subsection) be treated
as a citizen or resident of the United States shall continue
to be treated as a citizen or resident of the United States
until such individual--
``(1) gives notice of an expatriating act or termination of
residency (with the requisite intent to relinquish
citizenship or terminate residency) to the Secretary of State
or the Secretary of Homeland Security, and
``(2) provides a statement in accordance with section
6039G.''.
(c) Physical Presence in the United States for More Than 30
Days.--Section
[[Page H1971]]
877 (relating to expatriation to avoid tax) is amended by
adding at the end the following new subsection:
``(g) Physical Presence.--This section shall not apply to
any individual for any taxable year during the 10-year period
referred to in subsection (a) in which such individual is
present in the United States for more than 30 days in the
calendar year ending in such taxable year, and such
individual shall be treated for purposes of this title as a
citizen or resident of the United States for such taxable
year.''.
(d) Transfers Subject to Gift Tax.--Subsection (a) of
section 2501 (relating to taxable transfers) is amended by
adding at the end the following:
``(6) Transfers of certain stock.--
``(A) In general.--Paragraph (3) shall not apply to the
transfer of stock described in subparagraph (B) by any
individual to whom section 877(b) applies, and section
2511(a) shall be applied without regard to whether such stock
is property which is situated within the United States.
``(B) Valuation.--For purposes of subparagraph (A), the
value of stock shall be determined as provided in section
2103, except that--
``(i) if the donor owned (within the meaning of section
958(a)) at the time of such transfer 10 percent or more of
the total combined voting power of all classes of stock
entitled to vote of a foreign corporation, and
``(ii) if such donor owned (within the meaning of section
958(a)), or is considered to have owned (by applying the
ownership rules of section 958(b)), at the time of such
transfer, more than 50 percent of--
``(I) the total combined voting power of all classes of
stock entitled to vote of such corporation, or
``(II) the total value of the stock of such
corporation,then that proportion of the fair market value of
the stock of such foreign corporation owned (within the
meaning of section 958(a)) by such donor at the time of such
transfer, which the fair market value of any assets owned by
such foreign corporation and situated in the United States,
at the time of such transfer, bears to the total fair market
value of all assets owned by such foreign corporation at the
time of such transfer, shall be included in the value of such
property.
For purposes of the preceding sentence, a donor shall be
treated as owning stock of a foreign corporation at the time
of such transfer if, at such time, by trust or otherwise,
within the meaning of sections 2035 to 2038, inclusive, he
owned such stock.''.
(e) Enhanced Information Reporting From Individuals Losing
United States Citizenship.--
(1) In general.--Subsection (a) of section 6039G is amended
to read as follows:
``(a) In General.--Notwithstanding any other provision of
law, any individual to whom section 877(b) applies for any
taxable year shall provide a statement for such taxable year
which includes the information described in subsection
(b).''.
(2) Information to be provided.--Subsection (b) of section
6039G is amended to read as follows:
``(b) Information To Be Provided.--Information required
under subsection (a) shall include--
``(1) the taxpayer's TIN,
``(2) the mailing address of such individual's principal
foreign residence,
``(3) the foreign country, in which such individual is
residing,
``(4) the foreign country of which such individual is a
citizen,
``(5) information detailing the assets and liabilities of
such individual,
``(6) the number of days that the individual was present in
the United States during the taxable year, and
``(7) such other information as the Secretary may
prescribe.''.
(3) Increase in penalty.--Subsection (d) of section 6039G
is amended to read as follows:
``(d) Penalty.--If--
``(1) an individual is required to file a statement under
subsection (a) for any taxable year, and
``(2) fails to file such a statement with the Secretary on
or before the date such statement is required to be filed or
fails to include all the information required to be shown on
the statement or includes incorrect information,
such individual shall pay a penalty of $5,000 unless it is
shown that such failure is due to reasonable cause and not to
willful neglect.''.
(4) Conforming amendment.--Section 6039G is amended by
striking subsections (c), (f), and (g) and by redesignating
subsections (d) and (e) as subsection (c) and (d),
respectively.
(f) Effective Date.--The amendments made by this section
shall apply to individuals who expatriate after February 27,
2003.
SEC. 102. SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST
ORGANIZATIONS.
(a) In General.--Section 501 (relating to exemption from
tax on corporations, certain trusts, etc.) is amended by
redesignating subsection (p) as subsection (q) and by
inserting after subsection (o) the following new subsection:
``(p) Suspension of Tax-Exempt Status of Terrorist
Organizations.--
``(1) In general.--The exemption from tax under subsection
(a) with respect to any organization described in paragraph
(2), and the eligibility of any organization described in
paragraph (2) to apply for recognition of exemption under
subsection (a), shall be suspended during the period
described in paragraph (3).
``(2) Terrorist organizations.--An organization is
described in this paragraph if such organization is
designated or otherwise individually identified--
``(A) under section 212(a)(3)(B)(vi)(II) or 219 of the
Immigration and Nationality Act as a terrorist organization
or foreign terrorist organization,
``(B) in or pursuant to an Executive order which is related
to terrorism and issued under the authority of the
International Emergency Economic Powers Act or section 5 of
the United Nations Participation Act of 1945 for the purpose
of imposing on such organization an economic or other
sanction, or
``(C) in or pursuant to an Executive order issued under the
authority of any Federal law if--
``(i) the organization is designated or otherwise
individually identified in or pursuant to such Executive
order as supporting or engaging in terrorist activity (as
defined in section 212(a)(3)(B) of the Immigration and
Nationality Act) or supporting terrorism (as defined in
section 140(d)(2) of the Foreign Relations Authorization Act,
Fiscal Years 1988 and 1989); and
``(ii) such Executive order refers to this subsection.
``(3) Period of suspension.--With respect to any
organization described in paragraph (2), the period of
suspension--
``(A) begins on the later of--
``(i) the date of the first publication of a designation or
identification described in paragraph (2) with respect to
such organization, or
``(ii) the date of the enactment of this subsection, and
``(B) ends on the first date that all designations and
identifications described in paragraph (2) with respect to
such organization are rescinded pursuant to the law or
Executive order under which such designation or
identification was made.
``(4) Denial of deduction.--No deduction shall be allowed
under section 170, 545(b)(2), 556(b)(2), 642(c), 2055,
2106(a)(2), or 2522 for any contribution to an organization
described in paragraph (2) during the period described in
paragraph (3).
``(5) Denial of administrative or judicial challenge of
suspension or denial of deduction.--Notwithstanding section
7428 or any other provision of law, no organization or other
person may challenge a suspension under paragraph (1), a
designation or identification described in paragraph (2), the
period of suspension described in paragraph (3), or a denial
of a deduction under paragraph (4) in any administrative or
judicial proceeding relating to the Federal tax liability of
such organization or other person.
``(6) Erroneous designation.--
``(A) In general.--If--
``(i) the tax exemption of any organization described in
paragraph (2) is suspended under paragraph (1),
``(ii) each designation and identification described in
paragraph (2) which has been made with respect to such
organization is determined to be erroneous pursuant to the
law or Executive order under which such designation or
identification was made, and
``(iii) the erroneous designations and identifications
result in an overpayment of income tax for any taxable year
by such organization,
credit or refund (with interest) with respect to such
overpayment shall be made.
``(B) Waiver of limitations.--If the credit or refund of
any overpayment of tax described in subparagraph (A)(iii) is
prevented at any time by the operation of any law or rule of
law (including res judicata), such credit or refund may
nevertheless be allowed or made if the claim therefor is
filed before the close of the 1-year period beginning on the
date of the last determination described in subparagraph
(A)(ii).
``(7) Notice of Suspensions.--If the tax exemption of any
organization is suspended under this subsection, the Internal
Revenue Service shall update the listings of tax-exempt
organizations and shall publish appropriate notice to
taxpayers of such suspension and of the fact that
contributions to such organization are not deductible during
the period of such suspension.''.
(b) Effective Date.--The amendments made by this section
shall apply to designations made before, on, or after the
date of the enactment of this Act.
SEC. 103. EXPRESSING THE SENSE OF THE CONGRESS THAT TAX
REFORM IS NEEDED TO ADDRESS THE ISSUE OF
CORPORATE EXPATRIATION.
(a) Findings.--The Congress finds that--
(1) the tax laws of the United States are overly complex;
(2) the tax laws of the United States are among the most
burdensome and uncompetitive in the world;
(3) the tax laws of the United States make it difficult for
domestically-owned United States companies to compete abroad
and in the United States;
(4) a domestically-owned corporation is disadvantaged
compared to a United States subsidiary of a foreign-owned
corporation; and
(5) international competitiveness is forcing many United
States corporations to make a choice they do not want to
make-go out of business, sell the business to a foreign
competitor, or become a subsidiary of a foreign corporation
(i.e., engage in an inversion transaction).
(b) Sense of Congress.--It is the sense of Congress that
passage of legislation to fix
[[Page H1972]]
the underlying problems with our tax laws is essential and
should occur as soon as possible, so United States
corporations will not face the current pressures to engage in
inversion transactions.
TITLE II--RELIEF FOR FOREIGN SERVICE AND ASTRONAUTS
SEC. 201. SPECIAL RULE FOR MEMBERS OF FOREIGN SERVICE IN
DETERMINING EXCLUSION OF GAIN FROM SALE OF
PRINCIPAL RESIDENCE.
(a) In General.--Subsection (d) of section 121 (relating to
exclusion of gain from sale of principal residence) is
amended by adding at the end the following new paragraph:
``(10) Members of foreign service.--
``(A) In general.--At the election of an individual with
respect to a property, the running of the 5-year period
referred to in subsections (a) and (c)(1)(B) and paragraph
(7) of this subsection with respect to such property shall be
suspended during any period that such individual or such
individual's spouse is serving on qualified official extended
duty as a member of the Foreign Service.
``(B) Maximum period of suspension.--Such 5-year period
shall not be extended more than 5 years by reason of
subparagraph (A).
``(C) Qualified official extended duty.--For purposes of
this paragraph--
``(i) In general.--The term `qualified official extended
duty' means any extended duty while serving at a duty station
which is at least 150 miles from such property or while
residing under Government orders in Government quarters.
``(ii) Foreign service.--The term `member of the Foreign
Service' has the meaning given the term `member of the
Service' by paragraph (1), (2), (3), (4), or (5) of section
103 of the Foreign Service Act of 1980, as in effect on the
date of the enactment of this paragraph.
``(iii) Extended duty.--The term `extended duty' means any
period of active duty pursuant to a call or order to such
duty for a period in excess of 180 days or for an indefinite
period.
``(D) Special rules relating to election.--
``(i) Election limited to 1 property at a time.--An
election under subparagraph (A) with respect to any property
may not be made if such an election is in effect with respect
to any other property.
``(ii) Revocation of election.--An election under
subparagraph (A) may be revoked at any time.''.
(b) Effective Date; Special Rule.--
(1) Effective date.--The amendment made by this section
shall take effect as if included in the amendments made by
section 312 of the Taxpayer Relief Act of 1997.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendment made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.
SEC. 202. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF
ASTRONAUTS WHO LOSE THEIR LIVES ON A SPACE
MISSION.
(a) Income Tax Relief.--
(1) In general.--Subsection (d) of section 692 (relating to
income taxes of members of Armed Forces and victims of
certain terrorist attacks on death) is amended by adding at
the end the following new paragraph:
``(5) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death
occurs while on a space mission, except that paragraph (3)(B)
shall be applied by using the date of the death of the
astronaut rather than September 11, 2001.''.
(2) Conforming amendments.--
(A) Section 5(b)(1) is amended by inserting ``,
astronauts,'' after ``Forces''.
(B) Section 6013(f)(2)(B) is amended by inserting ``,
astronauts,'' after ``Forces''.
(3) Clerical amendments.--
(A) The heading of section 692 is amended by inserting ``,
ASTRONAUTS,'' after ``FORCES''.
(B) The item relating to section 692 in the table of
sections for part II of subchapter J of chapter 1 is amended
by inserting ``, astronauts,'' after ``Forces''.
(4) Effective date.--The amendments made by this subsection
shall apply with respect to any astronaut whose death occurs
after December 31, 2002.
(b) Death Benefit Relief.--
(1) In general.--Subsection (i) of section 101 (relating to
certain death benefits) is amended by adding at the end the
following new paragraph:
``(4) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death
occurs while on a space mission.''.
(2) Clerical amendment.--The heading for subsection (i) of
section 101 is amended by inserting ``or Astronauts'' after
``Victims''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid after December 31, 2002, with
respect to deaths occurring after such date.
(c) Estate Tax Relief.--
(1) In general.--Subsection (b) of section 2201 (defining
qualified decedent) is amended by striking ``and'' at the end
of paragraph (1)(B), by striking the period at the end of
paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) any astronaut whose death occurs while on a space
mission.''.
(2) Clerical amendments.--
(A) The heading of section 2201 is amended by inserting ``,
DEATHS OF ASTRONAUTS,'' after ``FORCES''.
(B) The item relating to section 2201 in the table of
sections for subchapter C of chapter 11 is amended by
inserting ``, deaths of astronauts,'' after ``Forces''.
(3) Effective date.--The amendments made by this subsection
shall apply to estates of decedents dying after December 31,
2002.
TITLE III--HEALTH PROVISIONS
SEC. 301. VACCINE TAX TO APPLY TO HEPATITIS A VACCINE.
(a) In General.--Paragraph (1) of section 4132(a) (defining
taxable vaccine) is amended by redesignating subparagraphs
(I), (J), (K), and (L) as subparagraphs (J), (K), (L), and
(M), respectively, and by inserting after subparagraph (H)
the following new subparagraph:
``(I) Any vaccine against hepatitis A.''
(b) Effective Date.--
(1) Sales, etc.--The amendments made by subsection (a)
shall apply to sales and uses on or after the first day of
the first month which begins more than 4 weeks after the date
of the enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of
sales on or before the effective date described in such
paragraph for which delivery is made after such date, the
delivery date shall be considered the sale date.
SEC. 302. EXPANSION OF HUMAN CLINICAL TRIALS QUALIFYING FOR
ORPHAN DRUG CREDIT.
(a) In General.--Paragraph (2) of section 45C(b) (relating
to qualified clinical testing expenses) is amended by adding
at the end the following new subparagraph:
``(C) Treatment of certain expenses incurred before
designation.--For purposes of subparagraph (A)(ii)(I), if a
drug is designated under section 526 of the Federal Food,
Drug, and Cosmetic Act not later than the due date (including
extensions) for filing the return of tax under this subtitle
for the taxable year in which the application for such
designation of such drug was filed, such drug shall be
treated as having been designated on the date that such
application was filed. The preceding sentence shall not apply
with respect to any expense incurred after December 31,
2010.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to expenses incurred after the date of the
enactment of this Act.
TITLE IV--FOREST CONSERVATION ACTIVITIES
SEC. 401. PILOT PROJECT FOR FOREST CONSERVATION ACTIVITIES.
(a) Tax-Exempt Bond Financing.--
(1) In General.--For purposes of the Internal Revenue Code
of 1986, any qualified forest conservation bond shall be
treated as an exempt facility bond under section 142 of such
Code.
(2) Qualified forest conservation bond.--For purposes of
this section, the term ``qualified forest conservation bond''
means any bond issued as part of an issue if--
(A) 95 percent or more of the net proceeds (as defined in
section 150(a)(3) of such Code) of such issue are to be used
for qualified project costs,
(B) such bond is an obligation of the State of Washington
or any political subdivision thereof and is issued for the
Evergreen Forest Trust, and
(C) such bond is issued before October 1, 2004.
(3) Limitation on aggregate amount issued.--The maximum
aggregate face amount of bonds which may be issued under this
section shall not exceed $250,000,000.
(4) Qualified project costs.--For purposes of this
subsection, the term ``qualified project costs'' means the
sum of--
(A) the cost of acquisition by the Evergreen Forest Trust
from an unrelated person of forests and forest land--
(i) which are located in the State of Washington, and
(ii) which at the time of acquisition or immediately
thereafter are subject to a conservation restriction
described in subsection (c)(2),
(B) capitalized interest on the qualified forest
conservation bonds for the 3-year period beginning on the
date of issuance of such bonds, and
(C) credit enhancement fees which constitute qualified
guarantee fees (within the meaning of section 148 of such
Code).
(5) Special rules.--In applying the Internal Revenue Code
of 1986 to any qualified forest conservation bond, the
following modifications shall apply:
(A) Section 146 of such Code (relating to volume cap) shall
not apply.
(B) For purposes of section 147(b) of such Code (relating
to maturity may not exceed 120 percent of economic life), the
land and standing timber acquired with proceeds of qualified
forest conservation bonds shall have an economic life of 35
years.
(C) Subsections (c) and (d) of section 147 of such Code
(relating to limitations on acquisition of land and existing
property) shall not apply.
(D) Section 57(a)(5) of such Code (relating to tax-exempt
interest) shall not apply to interest on qualified forest
conservation bonds.
(6) Treatment of current refunding bonds.--Paragraphs
(2)(C) and (3) shall not apply to any bond (or series of
bonds) issued
[[Page H1973]]
to refund a qualified forest conservation bond issued before
October 1, 2004, if--
(A) the average maturity date of the issue of which the
refunding bond is a part is not later than the average
maturity date of the bonds to be refunded by such issue,
(B) the amount of the refunding bond does not exceed the
outstanding amount of the refunded bond, and
(C) the net proceeds of the refunding bond are used to
redeem the refunded bond not later than 90 days after the
date of the issuance of the refunding bond.
For purposes of subparagraph (A), average maturity shall be
determined in accordance with section 147(b)(2)(A) of such
Code.
(7) Effective date.--This subsection shall apply to
obligations issued after the date of the enactment of this
Act.
(b) Items From Qualified Harvesting Activities Not Subject
to Tax or Taken Into Account.--
(1) In general.--Income, gains, deductions, losses, or
credits from a qualified harvesting activity conducted by the
Evergreen Forest Trust shall not be subject to tax or taken
into account under subtitle A of the Internal Revenue Code of
1986.
(2) Qualified harvesting activity.--For purposes of
paragraph (1)--
(A) In general.--The term ``qualified harvesting activity''
means the sale, lease, or harvesting, of standing timber--
(i) on land owned by the Evergreen Forest Trust which was
acquired with proceeds of qualified forest conservation
bonds, and
(ii) pursuant to a qualified conservation plan adopted by
the Evergreen Forest Trust.
(B) Exceptions.--
(i) Cessation as qualified organization.--The term
``qualified harvesting activity'' shall not include any sale,
lease, or harvesting during any period that the Evergreen
Forest Trust is not a qualified organization.
(ii) Exceeding limits on harvesting.--The term ``qualified
harvesting activity'' shall not include any sale, lease, or
harvesting of standing timber on land acquired with proceeds
of qualified forest conservation bonds to the extent that--
(I) the average annual area of timber harvested from such
land exceeds 2.5 percent of the total area of such land, or
(II) the quantity of timber removed from such land exceeds
the quantity which can be removed from such land annually in
perpetuity on a sustained-yield basis with respect to such
land.
The limitations under subclauses (I) and (II) shall not apply
to salvage or sanitation harvesting of timber stands which
are substantially damaged by fire, windthrow, or other
catastrophe, or which are in imminent danger from insect or
disease attack.
(3) Termination.--This subsection shall not apply to any
qualified harvesting activity occurring after the date on
which there is no outstanding qualified forest conservation
bond or any such bond ceases to be a tax-exempt bond.
(4) Partial recapture of benefits if harvesting limit
exceeded.--If, as of the date that this subsection ceases to
apply under paragraph (3), the average annual area of timber
harvested from the land exceeds the requirement of paragraph
(2)(B)(ii)(I), the tax imposed by chapter 1 of the Internal
Revenue Code of 1986 shall be increased, under rules
prescribed by the Secretary, by the sum of the tax benefit
attributable to such excess and interest at the underpayment
rate under section 6621 for the period of the underpayment.
(c) Definitions.--For purposes of this section--
(1) Qualified conservation plan.--The term ``qualified
conservation plan'' means a multiple land use program or plan
which--
(A) is designed and administered primarily for the purposes
of protecting and enhancing wildlife and fish, timber, scenic
attributes, recreation, and soil and water quality of the
forest and forest land,
(B) mandates that conservation of forest and forest land is
the single-most significant use of the forest and forest
land,
(C) requires that timber harvesting be consistent with--
(i) restoring and maintaining reference conditions for the
Westside Douglas Fir forest type,
(ii) restoring and maintaining a representative sample of
young, mid, and late successional forest age classes,
(iii) maintaining or restoring the resources' ecological
health for purposes of preventing damage from fire, insect,
or disease,
(iv) maintaining or enhancing wildlife or fish habitat,
(v) enhancing research opportunities in sustainable
renewable resource uses, or
(vi) preserving or protecting open space.
(2) Conservation restriction.--The conservation restriction
described in this paragraph is a restriction which--
(A) is granted in perpetuity to an unrelated person which
is described in section 170(h)(3) of such Code and which, in
the case of a nongovernmental unit, is organized and operated
for conservation purposes,
(B) meets the requirements of clause (ii) or (iii)(II) of
section 170(h)(4)(A) of such Code,
(C) obligates the Evergreen Forest Trust to pay the costs
incurred by the holder of the conservation restriction in
monitoring compliance with such restriction, and
(D) requires an increasing level of conservation benefits
to be provided whenever circumstances allow it.
(3) Qualified organization.--The term ``qualified
organization'' means an organization--
(A) which is a nonprofit organization organized and
operated exclusively for charitable, scientific, or
educational purposes including but not limited to acquiring,
protecting, restoring, managing, and developing forest lands
and other renewable resources for the long-term charitable,
educational, scientific, and public benefit of the State of
Washington,
(B) more than half of the value of the property of which
consists of forests and forest land acquired with the
proceeds from qualified forest conservation bonds,
(C) which periodically conducts educational programs
designed to inform the public of environmentally sensitive
forestry management and conservation techniques,
(D) which has a board of directors that at all times is
comprised of 9 members--
(i) at least 2 of whom represent the holders of the
conservation restriction described in paragraph (2), and
(ii) at least 2 of whom are public officials,
(E) of which not more than one-third of the members of the
board of directors is comprised of individuals who are or
were at any time within 5 years before the beginning of a
term of membership on the board, an employee of, independent
contractor with respect to, officer of, director of, or held
a material financial interest in, a commercial forest
products enterprise with which the Evergreen Forest Trust has
a contractual or other financial arrangement,
(F) the bylaws of which require at least two-thirds of the
members of the board of directors to vote affirmatively to
approve the qualified conservation program and any change
thereto, and
(G) upon dissolution, is required to dedicate its assets
to--
(i) an organization described in section 501(c)(3) of such
Code which is organized and operated for conservation
purposes, or
(ii) a governmental unit described in section 170(c)(1) of
such Code.
(4) Evergreen forest trust.--The term ``Evergreen Forest
Trust'' means a nonprofit corporation known as the Evergreen
Forest Trust which was incorporated on February 25, 2000,
under chapter 24.03 of the Revised Code of Washington and
which, on May 11, 2001, was recognized as an organization
described in section 501(c)(3) of the Internal Revenue Code
of 1986.
(5) Unrelated person.--The term ``unrelated person'' means
a person who is not a related person.
(6) Related person.--A person shall be treated as related
to another person if--
(A) such person bears a relationship to such other person
described in section 267(b) (determined without regard to
paragraph (9) thereof), or 707(b)(1), of such Code,
determined by substituting ``25 percent'' for ``50 percent''
each place it occurs therein, and
(B) in the case such other person is a nonprofit
organization, if such person controls directly or indirectly
more than 25 percent of the governing body of such
organization.
TITLE V--RELIEF AND EQUITY FOR SMALL BUSINESSES
SEC. 501. SIMPLIFICATION OF EXCISE TAX IMPOSED ON BOWS AND
ARROWS.
(a) Bows.--Paragraph (1) of section 4161(b) (relating to
bows) is amended to read as follows:
``(1) Bows.--
``(A) In general.--There is hereby imposed on the sale by
the manufacturer, producer, or importer of any bow which has
a draw weight of 30 pounds or more, a tax equal to 11 percent
of the price for which so sold.
``(B) Archery equipment.--There is hereby imposed on the
sale by the manufacturer, producer, or importer--
``(i) of any part or accessory suitable for inclusion in or
attachment to a bow described in subparagraph (A), and
``(ii) of any quiver or broadhead suitable for use with an
arrow described in paragraph (3),
a tax equal to 11 percent of the price for which so sold.''.
(b) Arrows.--Subsection (b) of section 4161 (relating to
bows and arrows, etc.) is amended by redesignating paragraph
(3) as paragraph (4) and inserting after paragraph (2) the
following:
``(3) Arrows.--
``(A) In general.--There is hereby imposed on the sale by
the manufacturer, producer, or importer of any arrow, a tax
equal to 12 percent of the price for which so sold.
``(B) Exception.--The tax imposed by subparagraph (A) on an
arrow shall not apply if the arrow contains an arrow shaft
subject to the tax imposed by paragraph (2).
``(C) Arrow.--For purposes of this paragraph, the term
`arrow' means any shaft described in paragraph (2) to which
additional components are attached.''.
(c) Conforming Amendment.--The heading of section
4161(b)(2) is amended by striking ``Arrows.--'' and inserting
``Arrow components.--''.
(d) Effective Date.--The amendments made by this section
shall apply to articles sold by the manufacturer, producer,
or importer after the 90th day after the date of the
enactment of this Act.
SEC. 502. CAPITAL GAIN TREATMENT UNDER SECTION 631(B) TO
APPLY TO OUTRIGHT SALES BY LANDOWNERS.
(a) In General.--The first sentence of section 631(b)
(relating to disposal of timber with a retained economic
interest) is amended by striking ``retains an economic
interest
[[Page H1974]]
in such timber'' and inserting ``either retains an economic
interest in such timber or makes an outright sale of such
timber''.
(b) Conforming Amendments.--
(1) The third sentence of section 631(b) is amended by
striking ``The date of disposal'' and inserting ``In the case
of disposal of timber with a retained economic interest, the
date of disposal''.
(2) The heading for section 631(b) is amended by striking
``With a Retained Economic Interest''.
(c) Effective Date.--The amendments made by this section
shall apply to sales after the date of the enactment of this
Act.
SEC. 503. REPEAL OF EXCISE TAX ON FISHING TACKLE BOXES.
(a) Repeal.--Paragraph (6) of section 4162(a) (defining
sport fishing equipment) is amended by striking subparagraph
(C) and by redesignating subparagraphs (D) through (J) as
subparagraphs (C) through (I), respectively.
(b) Effective Date.--The amendment made by this section
shall take effect 30 days after the date of the enactment of
this Act.
SEC. 504. TREATMENT UNDER AT-RISK RULES OF PUBLICLY TRADED
NONRECOURSE DEBT.
(a) In General.--Subparagraph (A) of section 465(b)(6)
(relating to qualified nonrecourse financing treated as
amount at risk) is amended by striking ``share of'' and all
that follows and inserting ``share of--
``(i) any qualified nonrecourse financing which is secured
by real property used in such activity, and
``(ii) any other financing which--
``(I) would (but for subparagraph (B)(ii)) be qualified
nonrecourse financing,
``(II) is qualified publicly traded debt, and
``(III) is not borrowed by the taxpayer from a person
described in subclause (I), (II), or (III) of section
49(a)(1)(D)(iv).''.
(b) Qualified Publicly Traded Debt.--Paragraph (6) of
section 465(b) is amended by adding at the end the following
new subparagraph:
``(F) Qualified publicly traded debt.--For purposes of
subparagraph (A), the term `qualified publicly traded debt'
means any debt instrument which is readily tradable on an
established securities market. Such term shall not include
any debt instrument which has a yield to maturity which
equals or exceeds the limitation in section 163(i)(1)(B).''.
(c) Effective Date.--The amendments made by this section
shall apply to debt instruments issued after the date of the
enactment of this Act.
TITLE VI--EQUITY FOR FARMERS
SEC. 601. SPECIAL RULES FOR LIVESTOCK SOLD ON ACCOUNT OF
WEATHER-RELATED CONDITIONS.
(a) Rules for Replacement of Involuntarily Converted
Livestock.--Subsection (e) of section 1033 (relating to
involuntary conversions) is amended--
(1) by striking ``Conditions.--For purposes'' and inserting
``Conditions.--
``(1) In general.--For purposes'', and
(2) by adding at the end the following new paragraph:
``(2) Extension of replacement period.--
``(A) In general.--In the case of drought, flood, or other
weather-related conditions described in paragraph (1) which
result in the area being designated as eligible for
assistance by the Federal Government, subsection (a)(2)(B)
shall be applied with respect to any converted property by
substituting `4 years' for `2 years'.
``(B) Further extension by secretary.--The Secretary may
extend on a regional basis the period for replacement under
this section (after the application of subparagraph (A)) for
such additional time as the Secretary determines appropriate
if the weather-related conditions which resulted in such
application continue for more than 3 years.''.
(b) Income Inclusion Rules.--Subsection (e) of section 451
(relating to special rule for proceeds from livestock sold on
account of drought, flood, or other weather-related
conditions) is amended by adding at the end the following new
paragraph:
``(3) Special election rules.--If section 1033(e)(2)
applies to a sale or exchange of livestock described in
paragraph (1), the election under paragraph (1) shall be
deemed valid if made during the replacement period described
in such section.''.
(c) Effective Date.--The amendments made by this section
shall apply to any taxable year with respect to which the due
date (without regard to extensions) for the return is after
December 31, 2002.
SEC. 602. INCOME AVERAGING FOR FARMERS NOT TO INCREASE
ALTERNATIVE MINIMUM TAX.
(a) In General.--Subsection (c) of section 55 (defining
regular tax) is amended by redesignating paragraph (2) as
paragraph (3) and by inserting after paragraph (1) the
following new paragraph:
``(2) Coordination with income averaging for farmers.--
Solely for purposes of this section, section 1301 (relating
to averaging of farm income) shall not apply in computing the
regular tax liability.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2002.
SEC. 603. PAYMENT OF DIVIDENDS ON STOCK OF COOPERATIVES
WITHOUT REDUCING PATRONAGE DIVIDENDS.
(a) In General.--Subsection (a) of section 1388 (relating
to patronage dividend defined) is amended by adding at the
end the following: ``For purposes of paragraph (3), net
earnings shall not be reduced by amounts paid during the year
as dividends on capital stock or other proprietary capital
interests of the organization to the extent that the articles
of incorporation or bylaws of such organization or other
contract with patrons provide that such dividends are in
addition to amounts otherwise payable to patrons which are
derived from business done with or for patrons during the
taxable year.''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions in taxable years beginning after
the date of the enactment of this Act.
TITLE VII--PROTECTION OF SOCIAL SECURITY
SEC. 701. PROTECTION OF SOCIAL SECURITY.
The amounts transferred to any trust fund under title II of
the Social Security Act shall be determined as if this Act
(other than title I, section 301, and this section) had not
been enacted.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Thomas) and the gentleman from New York (Mr. Rangel)
each will control 20 minutes.
The Chair recognizes the gentleman from California (Mr. Thomas).
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this is a modest bill that has come to the light of day
by virtue of examining those issues, although modest in nature, that
have passed the House or the Senate, or both, one or more times, but
somehow have never made it to the President's desk for signature.
Other measures in this bill are those measures that raise revenue in
ways that those committees responsible for assisting us in determining
ways to change the law indicate an appropriate change of the law.
Lastly, there are items which were approved by the committee,
notwithstanding the fact they do not raise revenue or they had been
approved previously, which merited the committee's voice voting, that
is, no recorded vote, and the bill itself passed by a voice vote. If
there was a measure that appeared to elicit controversy, that is, it
was a recorded vote in committee, then that measure is not included in
this particular provision. For example, there was an amendment offered
to extend some provisions of the military bill just passed to
astronauts who die on space missions. Obviously, that was a voice vote,
and it was unanimously agreed to.
There is a modification on the orphan drug credit provision. This
particular measure has passed the Committee on Ways and Means twice, it
passed the House three times, and it passed the Senate, but,
notwithstanding that stellar legislative career, it has never made it
to the President's desk for his signature.
There are other items in here which exemplify the fact that brought
to our attention over time are provisions of the Tax Code which make
absolutely no sense and should not remain in the Tax Code for 1 day
longer than our ability to amend it, and, yet, notwithstanding that,
remain on the books.
The gentleman from Wisconsin brought us an example which I think is
particularly egregious. It has to do with a very modest subject called
bows and arrows. As you might guess, some arrows are produced
domestically, and some are produced outside the United States. You
would think that if someone was going to import the components to
assemble an arrow, that is, use foreign parts and U.S. labor, that you
would not tax the foreign parts so that they could come in, so the
value added would be U.S. to produce that arrow.
But, ironically, it is exactly the opposite. It is the completed
arrow, with the foreign labor added, that comes in free of a tax, and
the component parts are taxed, which would make it more expensive if
you added U.S. labor. That is in direct competition to a U.S. arrow
which carries the tax.
Now, how in the world could the Tax Code get that far on its head?
You do not want to pursue that questioning, you only want to change it
immediately; not so, as some of the media has reported, that we give a
tax break to domestic producers of arrows, but that we create a fair
and equitable relationship between those arrows composed of foreign
components assembled by foreign labor in competition with American
arrows composed of American material. It seems to me that the only fair
thing is to treat them equally. The Tax Code does not do that, in part
or in whole. That is a typical example of one of the modest measures
that are included in this provision.
[[Page H1975]]
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I guess I rise in support of the bill. The reason I
reluctantly say ``I guess'' is because the Republicans once again have
shrewdly put us into a political box by bringing to the floor a
provision that provides tax relief for the families of the Columbia
Shuttle astronauts out of compassion for these families. There is no
one in the country, no one in the House, that would not want to support
this very, very sensitive provision. But, once again, the Republican
leadership has to make things difficult.
I am really amazed and surprised that as we ask for support for this
bill, that we have to put tax provisions on this bill to provide relief
for those people who make bows and arrows. It is totally unbelievable.
If that is not enough, then we have to find out why would we repeal the
tax on fishing tackle boxes and provide benefits for livestock sold on
account of drought or other weather-related issues?
Why, in God's name, can we not hold sacred just taking care of the
families of the shuttle astronauts, and not clobber this bill with
stuff that is just nothing more than provisions that people want to
provide for their people back home? I have no problem with providing
relief for pet projects back home. That is part of our responsibility.
But why in the world would we put it on a bill like this?
I will tell you why; so we do not have to debate these things on
their merit. There is no one, in my opinion, prepared to explain why
they voted against the families of Columbia Shuttle astronauts from
receiving benefits.
I may have missed something. Thank God they have taken out
eliminating taxes on foreign bettors on horse racing. They have taken
out repeal of consumer health protection.
But if the Republicans have anything else to say about this bill, and
I do hope that they do, please explain to this Member why on this bill
they sought to attach unrelated tax benefits for fishing tackle boxes,
for removing taxes on bows and arrows, and providing benefits for
livestock sold on account of drought or other weather-related
conditions.
{time} 1130
It would seem to me that if this relief is important enough for the
House of Representatives to consider, then out of respect, it should
never, never, never have been put on the Suspension Calendar with the
Columbian shuttle astronaut bill which puts the Members of the House in
the position of having to support stuff that they never would be able
to explain because they support the families of the shuttle victims.
Well, I do hope to hear from the other side soon on these other
issues.
Mr. Speaker, I yield 3 minutes to the gentleman from Michigan (Mr.
Levin), a senior member of the Committee on Ways and Means.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Mr. Speaker, the gentleman from New York (Mr. Rangel) has
explained his reluctant support because of the provision in here that
needs to be in here. As I understand it, that positive provision was
taken from the other bill and placed in this bill, so we are in a
situation where, as to the clearly legitimate provision, we either vote
``yes'' and pass this or vote ``no'' because of other provisions and,
therefore, bring down what we should be doing.
This is not the way to proceed in a deliberative body where there is
also respect for the views of every Member of this institution and the
ability of every Member here to be heard, to at least raise the issue
of amendments.
So I want to just say a few words about two of the provisions, one
relating to individual inversions or those expatriates, people who
leave the country to avoid taxes. There is a Senate approach and a
House approach. The Senate approach is far superior. What it does
essentially is it says to people who leave this country, individuals,
we are going to tax you as you leave on all of your unrealized income.
The House bill is much weaker. We should have had a chance to present
these two alternatives on the floor of the House.
Secondly, let me say a word about the sense of the Congress on the
issue of corporate expatriation. The gentleman from Massachusetts (Mr.
Neal) has had a bill here for months that addresses this issue. What
this sense of the Congress provision does is essentially to, I think,
paper it over and to paper it over incorrectly. Essentially what it
says is, to those who engage in corporate expatriation, it is not your
fault, it is the fault of the Tax Code. And I do not think we should be
giving that kind of, if not approval, a pass to those corporations that
escape American taxes by moving a headquarters overseas while often
continuing to have a major presence in the U.S.
We can do much better on both individual and corporate inversions
expatriations. But what has happened here is we have eliminated our
chance to even consider this intelligently and deliberately by putting
these provisions in a bill in a way that we cannot vote ``no.''
So those of us who will vote ``yes,'' in many cases, vote with those
limitations.
Mr. THOMAS. Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
I am disappointed that we do not have an explanation as to why the
fishing tackle boxes and the removal of taxes of bows and arrows and
benefits for livestock and an explanation of why those are on this
bill, but I guess silence is probably the best explanation that we can
possibly come up with, and that is they feel very awkward and
embarrassed and ashamed that they would have to resort to a mechanism
like this in putting this on the Columbia Shuttle victims' bill.
That being what it is, I am not prepared to go home and explain why I
voted for these bows and arrows and fishing boxes and livestock. It
suffices to say that all of us in our hearts know that the same way the
men and women have been heroes for all of us in the Armed Forces, we
cannot do enough to pay tribute to the heroes that served the United
States and the world by meeting the challenges of outer space, and that
forever in our hearts we will remember the families of the Columbia
Shuttle, and whatever we can ever do in the Congress or anywhere, for
that matter, to ease their pain and to show our support, we want the
families to know that even if sometimes it means swallowing hard, they
can depend on us being there for them as they were there for us.
Mr. Speaker, I yield back the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
This gentleman from California spent, I believe, 3 minutes explaining
the bow and arrow provision and why it was included. It was an
amendment that was presented to the committee. It is an unfairness in
the Tax Code, and it passed by a voice vote, just as the astronaut
provision was an amendment to this measure.
Now, I know that in some situations you are damned if you do and
damned if you do not. Had we selectively pulled amendments out and
included them in the military bill, we would have been criticized, as
we were before, that we were placing items on the military bill that,
in fact, were not originally on the bill. That is why we are carrying a
separate bill in dealing with all of those amendments that passed by
voice vote.
I did say in the opening statement one of the provisions, as compared
to all of the other provisions that have passed the House, the Senate,
and sometimes both multiple times, the livestock provision did not pass
the House before. It is a response to a current problem and
circumstance. When you lose livestock, you have an ability to deal with
an involuntary conversion. The loss of livestock is over the drought.
Now, it is unfortunate that weather does not follow a taxable
calendar year. If that were the case and we have 2 years in which to
deal with the involuntary compensation and replace the livestock, if
that drought which killed the first cow is still present and will kill
the second cow, it does not make a whole lot of sense to provide a time
frame which encompasses an ongoing drought. So the gentleman from
Colorado offered an amendment, accepted by voice vote, that says, let
us extend that involuntary conversion to 4 years and not 2. Hopefully,
the drought will
[[Page H1976]]
be over in that 4-year period, and they will be able to get an
involuntary conversion for a cow that, because there is no longer a
drought, will be able to stay alive.
It seems to me that these provisions are worthy and should move
forward.
Mr. BEREUTER. Mr. Speaker, this Member rises in support of H.R. 1308,
the Tax Reform, Simplification and Equity Act, and in particular the
provisions which will assist our nation's farmers and ranchers who are
suffering from a devastating drought.
Mr. Speaker, this Member is pleased that H.R. 1308 includes an
important provision originally introduced by the distinguished
gentleman from Colorado (Mr. McInnis) which is designed to assist
farmers and ranchers suffering from the drought. This Member is a
strong supporter and cosponsor of the Ranchers HELP Act, which is
included in H.R. 1308. This provision would provide ``involuntary
conversion'' tax relief for producers forced to sell livestock under
certain circumstances, such as weather-related conditions.
Specifically, the bill would allow producers four years (rather than
the current two year limit) after a forced sale to reinvest in
livestock without facing capital gains taxes. The Ranchers HELP
legislation also would allow the Federal Government the flexibility to
extend the amount of time a farmer or rancher can take to restore a
herd in certain regions experiencing a drought which lasts more than
three years.
It is important for the Federal Government to take actions, where
appropriate to help relieve the hardships caused by the severe drought
affecting Nebraska and the Great Plains region. The provisions included
in this bill are an important step in that direction.
There are two other provisions that should help farmers. Under
current law, farmers are allowed to average their income over three
years for tax purposes since farm income often fluctuates from year to
year. However, farmers who choose this option often fall into the
Alternative Minimum Tax (AMT). The provision in H.R. 1308 ensures that
farmers are not harmed by the AMT if they elect income averaging. In
1999 and 2000, this provision was included in a tax relief bill passed
by the House and the Senate that subsequently was vetoed by then-
President Clinton twice.
Another provision will help cooperatives that now face up to three
levels of tax penalties. This legislation includes a reduction of one
of these levels by providing that patronage dividends of cooperatives
will not be reduced by stock dividends to the extent the stock
dividends are in addition to amounts otherwise payable.
Mr. Speaker, this Member urges his colleagues to support H.R. 1308,
the Tax Reform, Simplification and Equity Act.
Ms. DUNN. Mr. Speaker, I rise today in support of H.R. 1308, the Tax
Relief, Simplification, and Equity Act.
Among other items, the bill contains an innovative solution to one of
the most difficult challenges we face as policymakers--conserving our
land while ensuring that it remains a source of economic activity.
What has been lacking in the Pacific Northwest is cooperation and
collaboration between environmentalists, the business community, and
local government on how best to solve difficult environmental issues.
Until now.
Recently, numerous programs in Washington State have been developed
that provide a road map for how everybody can come together to achieve
environmental protection.
In particular, numerous conservation groups have been working with
large landowners in an attempt to purchase sensitive parcels of land
and protect them from development. What they're lacking is access to
capital.
This bill will give them tax-exempt bond financing to preserve these
lands. In exchange, the land must continue to be used as a productive
resource and managed with the input of a diverse group of interests.
In the interest of progress in land conservation, I urge my
colleagues to support this bill.
Mr. THOMAS. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Linder). The question is on the motion
offered by the gentleman from California (Mr. Thomas) that the House
suspend the rules and pass the bill, H.R. 1308.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________