[Congressional Record Volume 154, Number 129 (Thursday, July 31, 2008)]
[Senate]
[Pages S7954-S7955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. LINCOLN (for herself, Mr. Smith, Ms. Cantwell, Mr. 
        Cornyn, Mrs. Murray, Mrs. Dole, Ms. Landrieu, Mr. Chambliss, 
        Mr. Wicker, and Mr. Vitter):
  S. 3399. A bill to amend the Internal Revenue Code of 1986 to make 
permanent the reduction in the rate of tax on qualified timber gain of 
corporations, and for other purposes; to the Committee on Finance.
  Mrs. LINCOLN. Mr. President, I am very pleased to rise today to 
introduce the Timber Revitalization and Economic Enhancement Act II of 
2008 with my good friend, Senator Smith of Oregon. I also want to say a 
special thanks to our cosponsors, Senators Cantwell, Murray, Dole, 
Chambliss, Cornyn, Landrieu, Wicker and Vitter.
  This legislation has commonly been referred to as the TREE Act. I 
appreciate that Congress understood the importance of the TREE Act with 
its inclusion and enactment in the Farm Bill earlier this year. But, 
unfortunately, this tax policy is already set to expire in less than 
one year. So today, my colleagues and I introduce the TREE Act II to 
make this important forest policy permanent.
  In my home State of Arkansas, the est products industry is a 
foundation of our economy and culture. More than 50 percent of Arkansas 
land is forested. Much of this is sustainably managed to create 
products we use every day. In addition, there are jobs associated with 
the growing of these forests and manufacture of these great products. 
More than 32,000 Arkansas men and women work in our woods, at our 
sawmills and in our paper mills. These are good jobs located in our 
small rural towns.
  However, these jobs and this industry continue to face many 
challenges. The TREE Act II addresses one of these challenges. Just as 
it is important to have diversity in our forests, it is also important 
to maintain diversity in our forestry industry, and we must ensure

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that all business forms have the necessary tools so they can be 
successful in the global marketplace. Timber companies that are 
organized as corporations continue to be under intensifying pressure to 
reorganize. In that case, a corporation that owns substantial 
manufacturing facilities would be forced to sell some of those 
facilities and to make other structural changes in order to comply with 
the relevant tax rules that it would newly become subject to. This 
would be likely to cause disruptions in some of these communities and 
also would make it harder for U.S. companies to compete 
internationally.
  In Arkansas, like so many other States across our Nation, a strong 
forest product industry is essential to having a strong economy. A 
permanent solution to the TREE Act II is imperative for this industry 
and supporting the jobs it provides. I look forward to working with my 
colleagues on the Senate Finance Committee to ensure this important tax 
policy is made permanent.
                                 ______