[Congressional Record Volume 154, Number 130 (Friday, August 1, 2008)]
[Extensions of Remarks]
[Page E1666]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               HOUSING AND ECONOMIC RECOVERY ACT OF 2008

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                               speech of

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Wednesday, July 30, 2008

  Mr. BLUMENAUER. Mr. Speaker, I strongly supported H.R., 3221, the 
American Housing Rescue and Foreclosure Prevention Act of 2008. Buried 
in the provisions of this bill, however, in section 3082, on page 680, 
is an expansion of the Gulf Opportunity Zone to two additional counties 
in Alabama. One of these counties is nearly 300 miles from the coast. 
This section doesn't have much to do with housing.
  This expansion is designed to provide a subsidy for National Steel 
Car, a Canadian rail car manufacturer. This subsidy is unnecessary for 
two reasons. First, the plant is already under construction and will be 
operational by this time next year. Second, Alabama was under a 
contractual obligation to provide the subsidy itself if Congress did 
not.
  The United States has a domestic rail car industry, with plants and 
facilities around the country. In fact, one borders my district, and it 
recently laid off over 100 employees because of the economic pressures 
on the industry. That company also has a facility in Alabama, but it 
won't benefit from this tax provision.
  In Congress, we often talk about not picking winners, of letting the 
market make these decisions rather than the Congress, of leveling 
playing fields rather than tilting them. But here we picked a winner. 
We held a secret bidding process and a Canadian company won, despite 
the fact that they would have made this investment anyway. The longer 
we pursue this method of doling out tax breaks, the harder real reform 
will be.
  The legislation I introduce today will ensure that these Alabama 
counties are able to benefit from the expanded GO Zone. The legislation 
also ensures, however, that taxes paid by the domestic rail car 
industry do not go to subsidizing their competitors and that we remove 
this rifleshot from the tax code.




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