[Congressional Record Volume 156, Number 85 (Tuesday, June 8, 2010)]
[Extensions of Remarks]
[Page E1029]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  INVESTING INCOME AT HOME ACT OF 2010

                                 ______
                                 

                         HON. LINDA T. SANCHEZ

                             of california

                    in the house of representatives

                         Tuesday, June 8, 2010

  Ms. LINDA T. SANCHEZ of California. Madam Speaker, I rise today to 
introduce the ``Investing Income at Home Act of 2010.'' This 
legislation would increase investment in the U.S. economy by allowing 
``closely held'' companies that earn money abroad to create American 
jobs by investing overseas profits here at home. This would be 
accomplished by updating an outdated relic of the Tax Code, the 
personal holding company, or ``PHC,'' tax structure.
  Under current law, a personal holding company's undistributed income 
is taxed at 15 percent. This rate is scheduled to return to the highest 
individual tax rate of 39.6 percent in 2011 when the 2001 and 2003 tax 
cuts expire. Unfortunately the personal holding company tax has not 
evolved to keep up with modern business realities. Family-run companies 
can be subject to this tax--which they would not pay if they were 
publicly owned.
  The Investing Income at Home Act will modify the definition of ``PHC 
income'' to exclude dividends received from foreign affiliates if those 
dividends are reinvested in the United States. Importantly, these 
dividends brought back into the United States could not be used by any 
company to pay executive salaries or benefits.
  This bill will ensure closely held corporations impacted by the PHC 
tax regime would pay the same level of corporate tax as similarly 
situated publicly traded corporations. This would free them to invest 
dividends from foreign sources into the U.S. economy helping to create 
much-needed jobs here in America.
  I urge my colleagues to join me in supporting this legislation.

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