[Congressional Record (Bound Edition), Volume 150 (2004), Part 17]
[Extensions of Remarks]
[Page 23459]
[From the U.S. Government Publishing Office, www.gpo.gov]




   CONFERENCE REPORT ON H.R. 4520, AMERICAN JOBS CREATION ACT OF 2004

                                 ______
                                 

                               speech of

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                       Thursday, October 7, 2004

  Mr. STARK. Mr. Speaker, I rise today in strident opposition to the 
conference report on H.R. 4520, the so-called ``Jobs Creation Act.'' 
This bill does nothing to create jobs at home, and actually provides 
incentives for corporations to move jobs offshore. The conference 
report is a $140 billion solution to a $57 billion problem, and how the 
Republicans intend to pay for this solution is both a sham and a 
disgrace.
  Repealing the extraterritorial income, ETI, regime is absolutely 
necessary to avoid retaliatory duties imposed by the European Union. 
This tax scheme was found to be illegal by the World Trade Organization 
because it unfairly advantaged U.S. corporations in the international 
arena. Given that judgment, my preferred approach was to simply repeal 
the tax and save $57 billion for America's taxpayers.
  That's what should have happened. But, even if one felt that the 
corporations shouldn't be penalized for the WTO ruling, keeping them 
whole after the ETI repeal would cost $57 billion. Unfortunately my 
colleagues have decided to go much further. They are replacing that 
illegal regime with $140 billion in unnecessary corporate tax cuts and 
extraneous provisions that have no business in this bill.
  This bill isn't only loaded with expensive, unnecessary tax breaks, 
it then goes so far as to induce U.S. companies to move even more jobs 
overseas through its bizarre tax incentive structure. During this 
jobless economic recovery, we cannot afford to give corporations even 
more incentive to ship jobs offshore. But, I guess this is consistent 
with the Bush administration and Republican belief that outsourcing 
jobs is good for America. I disagree.
  This bill also gives U.S. companies a tax break on the profits they 
have previously made by shipping jobs offshore. In fact, corporations 
are temporarily allowed to repatriate foreign profits at a rate of 5.25 
percent. Why would we ever give companies a tax holiday so they can 
line the pockets of executives and investors? That doesn't create jobs, 
it just breeds more corporate greed.
  The Republicans will claim that this bill is fiscally responsible 
because it is paid for. In reality the $80 billion in closed loopholes 
and other revenue raisers are just a pipe dream. Two of the biggest 
revenue raisers in the bill make it much harder for individuals to take 
the charitable deduction for donating property to non-profit 
organizations. I thought this was a corporate tax bill. I guess the 
Republicans think it is OK to raise taxes on charitable individuals so 
that billion-dollar corporations can have a little more money for their 
multimillion dollar executive salaries.
  The most egregious portion of this legislation is a $10.1 billion 
buyout for the tobacco industry, most of which would line the pockets 
of large tobacco manufacturers like Phillip Morris. The tobacco buyout 
is nothing more than an election year bribe to enlist southern 
Democrats' votes on a bill they would otherwise be unlikely to support. 
Instead of using this opportunity to include the Senate provision to 
allow the FDA to regulate tobacco, Republicans have decided to give a 
huge windfall to the tobacco industry, while doing nothing to reduce 
tobacco production and improve public health. That is just plain wrong.
  Finally, the Republicans have once again thwarted the democratic 
process by bringing a partisan 650 page bill with 617 pages of 
explanation up for a vote only hours after it was released. Are the 
Republicans afraid of what we might find if they actually gave us time 
to read and study the bill? I guess they just don't want to give us the 
time to make the public aware of the special interest giveaways loaded 
in their bill--covering everything from tackle boxes to sonar device 
industries.
  This so-called American Jobs Creation Act does not create jobs. 
Instead, it creates new incentives for U.S. corporations to send jobs 
overseas. The conference report is a $140 billion solution to a $57 
billion problem. Regardless of what my Republican colleagues say today, 
it will never be fully paid for. The extraneous provisions in this bill 
are mere gifts to big corporate donors and bribes to buy enough 
Democratic votes to pass the bill. This bill a disgrace to the American 
people and our tax code. Republicans should be hanging their heads in 
shame--but Republicans have no shame, as this bill clearly shows. I 
strongly urge all my colleagues to vote against the conference report 
for H.R. 4520.

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