[Congressional Record Volume 154, Number 10 (Wednesday, January 23, 2008)]
[Extensions of Remarks]
[Pages E63-E64]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        AMERICAN JOBS CREATION AND ECONOMIC STIMULUS ACT OF 2008

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                      Wednesday, January 23, 2008

  Mr. MANZULLO. Madam Speaker, last week, the Congressional Budget 
Office, CBO, released its report outlining options for responding to 
the Nation's short-term economic weakness. One key finding of the 
report contains a warning: Any stimulus that a short-term economic 
package ``can provide to the economy depends on how much of the 
resultant spending goes to purchase domestically produced goods. The 
degree of stimulus that a policy can provide to the economy also 
depends on how much of the resultant spending goes to purchase 
domestically produced goods. If the additional consumption, or 
investment, demand is satisfied by imported goods, the income of 
foreign producers will rise, and the stimulus essentially will be 
exported.''
  Simply put, the benefits of the proposed $145 billion U.S. economic 
stimulus package should not go abroad. The benefits of this package 
should help Americans as much as possible. That's why I, along with 
Representatives Bill Lipinski, Eric Cantor, Wally Herger, and Jeff 
Fortenberry, am proud to introduce today the American Jobs Creation and 
Economic Stimulus Act of 2008. This bill will provide a quick power 
boost to the economy that does not cost too much and rewards companies 
for keeping and adding jobs in America. This proposal simply 
accelerates the phase-in of the domestic manufacturing tax benefit by 2 
years. Any economic stimulus package that is crafted by Congress should 
include this provision.
  The domestic manufacturing tax deduction, now section 199 of the U.S. 
Tax Code, started in 2005 at 3 percent as part of the 2004 law that 
replaced the Foreign Sales Corporation/Extraterritorial Income, FSC/ETI 
tax structure, which was ruled as an illegal export subsidy by the 
World Trade Organization, WTO. Last year, the domestic manufacturing 
tax deduction increased to 6 percent. The final phase--raising the 
domestic manufacturing deduction to 9 percent--is scheduled to start in 
2010. The American Jobs Creations and Economic Stimulus Act of 2008 
simply changes the start date of the 9 percent domestic manufacturing 
tax deduction from January 1, 2010, to January 1, 2008, thus providing 
an additional 3 percent tax incentive for all domestic manufacturers 
right now.
  According to the Internal Revenue Service, IRS, 378,627 small and 
large manufacturers, as broadly defined by the U.S. Treasury, were 
helped by this benefit in 2005. One year later, that number grew to 
over 400,000. The domestic manufacturing benefit applies to firms of 
all types--C Corporations, S Corporations, Limited Liability Companies, 
LLCs, and sole proprietorships.
  This tax deduction is ideal because it only applies to revenue 
generated by operations based in the United States and discourages the 
``off-shoring'' of American production. No other economic stimulus idea 
ties tax relief to requiring companies to keep production and jobs in 
the United States. The American Jobs Creation and Economic Stimulus Act 
of 2008 is a simple bipartisan low-cost idea that will make a real 
difference right now. It also fits within the parameters, as outlined 
by the President on Friday, of what could be included in an economic 
stimulus package.
  Madam Speaker, I respectfully urge the inclusion of accelerating the 
phase-in of the domestic manufacturing tax deduction in any economic 
stimulus legislation that will be voted on by the House this year.

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