[Congressional Record Volume 155, Number 75 (Friday, May 15, 2009)]
[Extensions of Remarks]
[Page E1180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           INTRODUCTION OF NET OPERATING LOSS CARRYBACK BILL

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                          Friday, May 15, 2009

  Mr. NEAL of Massachusetts. Madam Speaker, today I am pleased to 
introduce legislation to help millions of American workers keep their 
jobs in this difficult economy. This bill provides a simple change in 
the rules for businesses with net operating losses. Already, businesses 
can carry these losses back or forward to offset taxes paid in more 
profitable years. This provision helps businesses smooth out the 
inevitable ups and downs of our economy.
  You would be hard pressed to find an economist now that would say the 
recession we are currently in is not one of the worst on record. In 
fact, almost all the economic data we can gather shows it is as bad as 
it has been since the Great Depression. Congress has already responded 
with the American Recovery and Reinvestment Act earlier this year, 
which did include a provision for businesses to carry back losses 
incurred in 2008 and 2009 for 5 years, instead of 2. However, at the 
last minute, this legislation was limited only to small businesses.
  I support broad and general net operating loss relief and am filing 
legislation today to do so. I am pleased to be joined in this effort by 
my friend and Ways and Means colleague, Mr. Tiberi from Ohio. Our bill 
is based on the budget proposal made by President Obama just this week. 
While the Administration has indicated the legislation the President 
supports is that which earlier passed in the Senate, officials have 
also said they do not support limits of certain industries to claim 
this relief from operating losses. I believe that is the right 
approach, but until we have clear guidance from the Administration, the 
bill I am filing today mirrors that which was filed in the Senate.
  Just this week, I was visited by one business that did not qualify 
under the stimulus bill--Brookstone. Any traveler will be happy to 
share with you their favorite Brookstone product--talking alarm clocks 
or compact hair dryers. Their stores are in most major airports now. 
But this 45-year old company, founded in my home State of 
Massachusetts, had a loss last year for the first time in the company's 
history. That loss impacts not only the bottom line, but its ability to 
restock inventory, and its ability to borrow money based on inventory. 
For many American businesses, like Brookstone, net operating loss 
relief can be a life-line to help a struggling business through a 
historic economic downturn.
  With consumer confidence at its lowest level ever, retailers across 
the country have been hurting. Retailers lost 535,000 jobs last year 
and 2009 is sure to rival that number. And the bad news just keeps on 
coming. Today, about 2,000 auto dealerships around the country will be 
eliminated. That's about 60 jobs at each dealership, averaging $50,000 
a year for those workers. These are difficult times for American 
businesses, and we can offer a life-line with this bill. I hope my 
colleagues will join us in this effort to provide modest relief through 
a simple accounting change for businesses with true operating losses.

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