[Congressional Record Volume 150, Number 130 (Monday, October 11, 2004)]
[Senate]
[Pages S11303-S11304]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AMERICAN JOBS CREATION ACT OF 2004

 Ms. MIKULSKI. Mr. President, I rise today in support of the 
American Jobs Creation Act. This bill is known as the ``JOBS'' Act 
because it will bring American jobs home, it will protect American jobs 
here, and it will create more American jobs.
  I have been fighting for a patriotic tax code that closes tax 
loopholes. This bill is not perfect. I have some yellow flashing lights 
about provisions that were stripped out in this conference report, 
particularly those affecting our workers right to overtime and our 
National Guard and Reservists.
  Our middle class is hurting. They are worried about keeping their 
jobs, paying for health care, and sending their children to college. 
America is hemorrhaging jobs--2.7 million manufacturing jobs have 
disappeared since 2001. My State of Maryland has lost 21,000 
manufacturing jobs since 2001.
  Where are these jobs going? They are going overseas. They are going 
on a slow boat to China or on the fast track to Mexico. These jobs are 
headed to dial 1-800 anywhere.
  Why are they going? These jobs are leaving because American companies 
are at a competitive disadvantage. Our American companies pay their 
workers a livable wage, pay their fair share of taxes, and provide 
health care and retirement benefits to their employees.
  I think it is wrong to give companies incentives to send millions of 
jobs to other countries when millions of Americans are losing their 
jobs. It is wrong to put companies who stay in America at a competitive 
disadvantage. They are at a competitive disadvantage because they have 
their business here at home, because their workers are here at home, 
because they pay their fair share of taxes, and because they provide 
health care to their employees.
  We should be rewarding these companies with good guy bonuses for 
hiring and building their businesses here in America. That is what I am 
fighting for in the U.S. Senate.
  But, this bill is not perfect which is why I fought to improve this 
bill during the Senate debate. Senator Dorgan and I offered an 
amendment to end tax subsidies to U.S. companies that send plants and 
U.S. jobs overseas. Our amendment would have required U.S. companies 
that open foreign plants or move plants overseas then export those 
goods made abroad back to the U.S. to pay taxes on the profits from 
these operations. Our amendment said the U.S.

[[Page S11304]]

Tax Code can no longer be used to boost corporate rewards at the 
expense of American workers.
  We should be rewarding our American companies who hire and build 
their businesses right here in the United States with good guy tax 
breaks. We should be giving good guy bonuses to American businesses 
that are providing health care to their workers and to their retirees.
  I have fought to help make health insurance more affordable for self-
employed individuals by allowing self-employed individuals to be able 
to fully deduct their health care premiums.
  I fought to provide workers and retirees who have lost health 
insurance due to trade with a tax credit of 65 percent for health care 
premiums, and I am still fighting to provide small businesses with a 50 
percent tax credit for the cost of health insurance premiums for their 
workers.
  I am standing up for America by standing up for a strong economy 
right here at home. This bill would help American jobs in three ways. 
This bill will help reinvigorate the U.S. manufacturing sector by 
creating incentives to retain more U.S. manufacturing jobs here in the 
U.S. by lowering the cost of production. Next, this bill helps U.S. 
companies compete abroad by putting U.S. companies on a more equal 
footing with foreign competitors. Lastly, this bill will help put an 
end to the tariffs imposed by EU on U.S. exports by repealing the 
income tax preferences that have been ruled illegal by the World Trade 
Organization. If we don't pass this legislation, these tariffs would 
cost American businesses up to $4 billion per year. And that's not 
okay.
  When I consider any tax proposal, I apply three criteria. Does it 
create jobs? Are the tax cuts targeted or temporary? Does the proposal 
increase structural deficit? The JOBS bill meets all my criteria. This 
bill would provide nearly $137 billion in new business tax cuts. There 
are four major sections of this bill: a new domestic manufacturing tax 
break; international tax simplification; small business provisions; 
and, shutting down tax shelters and closing tax shelters.
  The JOBS bill would reduce taxes for many of our U.S based 
manufacturers, by reducing their overall tax rate by 3 percent. This 
would lower the cost of doing business in the U.S. for U.S. 
manufacturers, and would help U.S. manufacturers compete against low-
cost manufacturing in other countries. The domestic manufacturing tax 
break is based on the amount of U.S.-based manufacturing profits. So 
companies can only get the tax break if they manufacture here at home. 
This bill also includes a very broad definition of manufacturing so it 
would help a broad range of companies.
  This bill also helps American companies working abroad to be more 
competitive with about $42.6 billion in tax breaks to U.S.-based 
multinationals. This legislation simplifies international tax rules, 
eliminates many redundant and complicated tax provisions, and reduces 
the double taxation of foreign-earned profits for U.S.-based companies. 
If our American companies are strong at home and abroad, our American 
economy will be strong. And that's what I'm fighting for.
  I know how important small businesses are to the health of the 
economy and to the communities that they serve. This legislation 
includes about $7.1 billion in tax breaks for small businesses in two 
important ways. First, this bill will provide tax breaks for restaurant 
owners and certain real estate developers so that they can write off 
the cost of improving their facilities faster, saving thousands of 
dollars. This legislation also extends the small business tax breaks 
from 2003 bill which allows small businesses to write off up to 
$100,000 for the purchase of new equipment. If we do not pass this 
legislation, our small businesses will only be able to write off 
$25,000 for investments in new equipment.
  This legislation funds tax breaks for our good guys by shutting down 
the types of tax loopholes used by Enron, cracking down abusive 
shelters, closing tax loopholes for companies and individuals who hide 
assets in tax havens to avoid paying U.S. taxes, and ending certain 
leasing arrangements for public infrastructure projects. I don't 
believe that the American taxpayer should be subsidizing the Paris 
metro. I say let's keep those dollars here at home.

  Though I am supporting today's bill, I also believe there are 
problems with it. I introduced an amendment with my colleague from 
Louisiana--Senator Mary Landrieu. Though this amendment passed 
unanimously in the Senate, it is nowhere to be found in this conference 
report. Senator Landrieu and I introduced an amendment that provides 
benefits to our good guy employers who pay their employees the 
difference between their National Guard salary and their civilian job. 
This important provision would have provided a 50 percent tax credit to 
employers who continue to pay their activated Guard and Reserve 
employees their civilian wages. This provision would also have provided 
a $6,000 tax credit to help small business owners hire temporary 
workers and provided a $10,000 tax credit for small manufacturers to 
hire temporary workers when their National Guard employees have been 
deployed. I wish that these provisions were included in the bill that 
we passed today.
  Our National Guardsmen are often our first responders. They are our 
policemen and firemen in times of crisis. They are ``Our Active Duty 
Americans''--on duty in times of peace and war. When our National 
Guardsmen and women are sent to Iraq, Afghanistan, or called to protect 
our critical military installations here in the U.S., they shouldn't 
have to worry about paying their bills here at home. It's just wrong 
that this provision was not included in the final JOBS bill.
  I am happy that we were able to reach a compromise and pass a bill, 
H.R. 1779, which would provide a 50 percent tax credit to small 
businesses who continue to pay their activated Guard and Reserve 
employees their civilian wages, and provide a $6,000 tax credit to help 
small business owners hire temporary workers. But, the bill we passed 
today leaves out our First Responders. It also leaves out the extra 
help for our manufacturers. Now that we have done our job here in the 
Senate, we have to hope that the House takes action on this bill when 
we return. Well, we all know what that means. I am going to continue to 
fight for this provision when we come back. I am also going to fight to 
do the same thing for our federal government employees with the Durbin-
Mikulski Pay Security Act.
  I have another problem with the legislation we are discussing today. 
I am so disappointed that the amendment to protect overtime pay was 
again stripped out in conference. Once again, the White House got its 
way even though Congress and the American public are opposed to the new 
overtime rules. Millions of Americans depend on overtime pay to pay 
their bills and to make ends meet. I thought that in this country the 
best social program was a job. Yet, up to 6 million workers have lost 
overtime protection under the new overtime rules. Workers should 
receive overtime pay for working overtime. It's just that simple. This 
isn't complicated--it's fair and right.
  The JOBS bill makes good things happen by helping U.S. companies. The 
JOBS bill also stops bad things from happening by going after tax 
cheats. But, the conference report is not near the bill that was passed 
by the Senate.
  I will vote for this legislation because I think it helps create a 
patriotic Tax Code, provides good guy bonuses to American manufacturing 
companies that keep jobs here, creates a level playing field for U.S. 
companies competing abroad, and cracks down on tax cheats and closing 
tax loopholes.
  I call on my colleagues to think about where America is going in the 
21st century. Where are we going to be? Are we going to create more 
opportunity? Are we going to create more jobs that pay a living wage 
and have a decent benefit structure?
  I really want to have a patriotic Tax Code that brings our jobs back 
home, helps us compete overseas, and stands up for America.
  I urge my colleagues to pass this important bill.

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