[Congressional Record (Bound Edition), Volume 149 (2003), Part 14]
[Senate]
[Page 18917]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        PETITIONS AND MEMORIALS

  The following petition or memorial was laid before the Senate and was 
referred or ordered to lie on the table as indicated:

       POM-234. A resolution adopted by the House of 
     Representatives of the Legislature of the State of Michigan 
     relative to tax issues related to the phase out of the 
     Oldsmobile; to the Committee on Finance.

                        House Resolution No. 192

       Whereas, The phase out of the Oldsmobile line of General 
     Motors is bringing to a close an historic chapter in American 
     automotive history. The end of this component of one of the 
     world's largest corporations also has significant 
     administrative and tax considerations that need to be 
     addressed quickly to provide for a fair and smooth transition 
     for those whose livelihoods are jeopardized; and
       Whereas, As compensation for the loss of years of goodwill 
     and the erosion of the value of large financial investments, 
     Oldsmobile dealerships will be paid a one-time settlement. As 
     federal tax laws now stand, this payment would be subject to 
     personal and business federal taxes as income. In reality, 
     however, the settlement money clearly should be categorized 
     as involuntary converted property. Under this determination, 
     the manufacturer's settlement would be treated like other 
     property that can be converted to similar purposes over a 
     specific period of time; and
       Whereas, Every effort should be made to encourage the 
     reinvestment of settlement resources to mitigate job loss, 
     lessen the economic stress to local communities, and protect 
     families from more serious financial difficulties. In 
     addition, it would be poor public policy for the federal 
     government to reap a tax revenue windfall as a result of this 
     rare and unique situation; and
       Whereas, As the home of the Olds automotive legacy and 20 
     of the top 50 Oldsmobile dealerships, Michigan has a major 
     stake in the fair treatment of these businesses and 
     individuals. It would be wrong for the tax code to act as a 
     disincentive to the reinvestment of the settlement dollars in 
     job-creating enterprises; Now, therefore, be it
       Resolved by the House of Representatives, That we 
     memorialize the Congress of the United States to enact H.R. 
     2374 to amend the Internal Revenue Code to consider certain 
     transitional dealer assistance related to the phase out of 
     Oldsmobile as an involuntary conversion; and be it further
       Resolved, That copies of this resolution be transmitted to 
     the President of the United States, the Speaker of the United 
     States House of Representatives, and the members of the 
     Michigan congressional delegation.

                          ____________________