[Congressional Record (Bound Edition), Volume 151 (2005), Part 2]
[Senate]
[Page 1518]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        TAX BREAK FOR COMPANIES

  Mr. DORGAN. Mr. President, I will take just another minute. I 
understand none of my colleagues wish to speak. I was speaking without 
notes, so I did not mention something I intended to mention. Most 
Americans do not know that at the moment there is a flurry of activity 
going on that also relates to values.
  This Congress, last year, passed legislation that contained a 
provision that is just Byzantine. It provides a tax break to companies 
that have, in many cases, moved their U.S. jobs overseas, earned income 
overseas, kept the income over there, and, under what is called a 
deferral, are not having to pay taxes on it in this country.
  We have a tax break for companies that shut down their American 
plant, move their plant overseas, earn income overseas, do not bring 
the income back, and they get what is called a deferral. They do not 
pay taxes.
  At some point, however, when they want to bring their income back to 
this country, they have to pay income taxes just as Americans do, and 
the companies that stayed here do, and the people who work for those 
companies do. Except last year, this Congress decided to give a big 
break to those who would repatriate their income from overseas profits.
  There is some $600 billion in income earned overseas that has not 
been repatriated and on which income taxes have not been paid. So guess 
what. This Congress said to all those big companies that made all this 
income overseas, some of which was made by shutting down their American 
plant and moving the jobs overseas: If you bring that money back, we 
will give you a deal. You get to pay income tax at the rate of 5.25 
percent--5.25.
  Do you know of anybody else working in this country who gets to pay a 
5.25-percent income tax. How about the people working at the 7-Eleven 
at the counter, a person who is changing oil in a car, a person who is 
working on a road crew, do you think any of those people are paying 
5.25-percent income tax on their earnings? No, they are not. The lowest 
bracket in the income system in this country is 10 percent, and it goes 
up to 35 percent. But now we have a new low bracket, and it is a 
special bracket. For those who earned income overseas and now 
repatriate the income to this country, some of which came as a result 
of moving American jobs overseas, they get to pay income taxes at 5.25 
percent.
  It reminded me of that great old song by Tom Paxton, ``I Am Changing 
My Name to Chrysler.'' This country gave a big loan to Chrysler many 
years ago when Mr. Iacocca was with Chrysler. It was very 
controversial. Tom Paxton wrote a song. He says:

       Oh the price of gold is rising out of sight
       And the dollar is in sorry shape tonight.
       What a dollar used to get us
       Now won't get a head of lettuce
       No the economic forecast is not bright.

  Then he goes on to talk about who gets the benefits and who pays the 
bills. At some point, I will read the entire lyrics to this song.
  It is a little like my colleague from Texas who knows about Bob Wills 
and his Texas Playboys, a lyric from a song of the 1930s that goes: The 
little bee sucks the blossom but the big bee gets the honey. The little 
guy picks the cotton and the big guy gets the money.
  Guess what. There is a lot of that spirit in the breasts of those who 
serve in this Congress who believe we ought to offer a 5.25-percent 
income tax rate to just a special group of people, those who have some 
$600 billion parked overseas.
  What about a 5.25-percent income tax rate for all Americans? Or what 
about charging those who repatriate that income the regular income tax 
rate and put that money into the Social Security system? Once again, it 
is a question of priorities and values and this Congress came up short 
on this issue.
  Very few people know that at the moment there are lawyers, 
accountants, and business executives scurrying around trying to figure 
out how they are going to take advantage of a special income tax rate 
that only they get, and the folks who work hard in this country and 
take a shower at night because they worked in tough conditions all day, 
they get to pay 10, 15, 25 or 30 percent income taxes. Maybe, as Tom 
Paxton said in ``I Am Changing My Name to Chrysler,'' we need to change 
our name so we get some of that 5.25-percent income tax rate. Maybe 
ordinary Americans ought to get some of that. Again, it is about values 
and about priorities.
  I am going to talk more about this subject because the American 
people need to understand what this Congress did. It is about cotton 
and honey and big guys and big bees, and I will talk more about it in 
the future. I was thinking about it while I was talking about Social 
Security and priorities and values. It is something the American people 
ought to understand. There is a special deal out there and it is not 
for them, regrettably, because this Congress decided they are not 
worthy. It is just the big interests that are worthy of the 5.25-
percent income tax rate.

                          ____________________