[Congressional Record Volume 150, Number 88 (Wednesday, June 23, 2004)]
[Extensions of Remarks]
[Page E1220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AMERICAN JOBS CREATION ACT OF 2004

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                        Thursday, June 17, 2004

  Ms. McCOLLUM. Mr. Speaker, today the House is considering legislation 
touted as a bill to create jobs and help our struggling manufacturing 
industry when in fact it does nothing of the sort. Instead, H.R. 4520 
would give U.S. multinational corporations more incentive to ship jobs 
overseas, adds $34 billion to the deficit and includes billions in tax 
breaks for special interests, while failing to help small businesses. 
Small business firms create 75 percent of all new U.S. jobs every year 
and should be receiving tax relief in today's legislation.
  In addition to a $10 billion tobacco buyout, this legislation 
includes tax breaks for special interests such as bow and arrow makers, 
tackle box companies, and sonar fish finders. Unfortunately the House 
Republican leadership chose to use the FSC/ETI repeal to provide a 
broad and complex tax break for large corporations, rather than more 
focused relief that would also benefit smaller manufacturers and farm 
cooperatives that create jobs and have production solely in the U.S.
  Even the Bush Administration has expressed concern over several of 
the provisions of the bill. This legislation, by offering tax relief to 
manufacturing firms, but not giving a clear definition of what a 
manufacturing firm is, creates incentive for firms to characterize 
themselves as in manufacturing opening the tax code up to new abuses. 
For example, efforts have already been underway to include food 
processing and the mixing of water and concentrate to make a soft drink 
in the definition of manufacturing. Congress should not be creating 
incentives for businesses to manipulate their services.
  There is a bipartisan proposal in Congress to stop the sanctions and 
create American jobs, but the Republican leadership blocked Democrats 
from offering this legislation as a substitute. This substitute would 
strike the provisions that promote shipping jobs overseas, add 
provisions to create more jobs in the U.S. by giving tax relief to 
American manufacturing including small business and farmers, and 
strikes the narrow special interest provisions. Furthermore the 
substitute is paid for by cracking down on tax shelters and 
corporations and individuals that move abroad to avoid paying taxes.
  I strongly support providing tax relief to our manufacturing firms, 
businesses and family farmers, but it is irresponsible to only provide 
tax relief to large multinational corporations. I urge my colleagues to 
oppose this legislation and instead pass a bill that would provide 
benefits to all U.S. manufacturing firms, big and small, without the 
costly special interest buyoffs found in this legislation.




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