[Congressional Record (Bound Edition), Volume 154 (2008), Part 9]
[Senate]
[Pages 11821-11822]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     ENERGY PACKAGE WITH EXTENDERS

  Mr. BAUCUS. Mr. President, last Friday a cloture motion was filed on 
H.R. 6049, the Renewable Energy Job Creation Act of 2008. This bill 
contains a robust energy package, with about $17 billion in incentives 
for alternative energy, for efficiency, and for clean coal. This 
package is important for our environment, for energy security, and to 
facilitate the transition to a carbon-controlled economy.
  It extends expiring individual provisions. These include the teacher 
expense deduction and the qualified tuition deduction. The bill also 
extends expiring business provisions. These include the research and 
development tax credit and the active finance expensing provision. 
These business provisions help keep America competitive in the global 
economy. These business provisions help maintain and create jobs. If 
these individual and business provisions are not extended, millions of 
families and businesses would have a huge tax increase. This is all 
paid for with two revenue raisers that no one has a problem with, 
revenue raisers that are sound tax policy.
  Some might argue we should not increase taxes to pay for tax cuts, 
but these revenue raisers are not tax increases. The first provision is 
an extension of the effective date of the worldwide allocation of 
interest, delaying application of that provision. This section of the 
code is scheduled to take effect for tax years beginning after December 
31, 2008. Many of the companies that will benefit from this provision 
have told me they would rather have business extenders, including R&D, 
active financing, and CFC look through, in exchange for a delayed 
application of the worldwide allocation of interest. These companies 
realize that in order to get extenders done now, they, along with the 
Congress, must pay for these provisions. These companies have made a 
choice. I believe it is a sound choice.
  The second provision is offshore deferred compensation. This 
provision prevents hedge fund managers from deferring income. This is 
not an increase in tax on hedge fund managers; rather, it is a change 
in the timing of when income tax will be applied. This is a timing 
issue, not a tax increase, and the proposal is sound tax policy. Some 
argue we should not pay to extend current tax benefits. This is a new 
one. When the other side was in the majority, several bills passed 
extending provisions, and they were paid for.
  So this week the Senate is faced with a choice, a choice that, in my 
opinion, is relatively easy. We need to decide

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whether we will develop new jobs and new medications or we can continue 
to allow hedge fund managers to defer without limitation their 
compensation for investing other people's money. I believe the choice 
is easy. We must pass this package of expiring provisions.
  I also believe the substitute I will offer will include fixing the 
AMT, taxes American taxpayers would otherwise have to pay--a so-called 
AMT patch. That prevents Americans from having to increase their tax 
liability in a way which I think would not be fair. As I said earlier, 
the extenders package will be paid for. The AMT patch will not be paid 
for. Why, some might ask. That is basically because I think it is 
important to recognize the reality that at the end of day, it will not 
be paid for, so I, therefore, believe it is important to include the 
AMT patch in something that is going to be fixed. It is not going to be 
paid for at the end; whereas, other provisions will be. That is the 
reason for including both in this bill. The extenders paid for, the AMT 
patch not paid for.
  I yield the floor.

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