[Congressional Record (Bound Edition), Volume 156 (2010), Part 5]
[House]
[Page 7173]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  H.R. 2927--THE BORDER TAX EQUITY ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pascrell) is recognized for 5 minutes.
  Mr. PASCRELL. Mr. Speaker, I rise this afternoon to speak on an issue 
that for too long we have known about but have done little to nothing 
to address on either side of the aisle. That issue is our growing trade 
inequity, which continually puts American manufacturers at a 
disadvantage and which has cost too many Americans their jobs.
  I introduced bipartisan legislation, H.R. 2927, with my colleague, 
Representative Walter Jones. So we've got Republicans on this bill, and 
we've got Democrats on this bill. It offers one path toward equalizing 
our growing trade inequity; but instead of having a thoughtful debate, 
we are again confronted by misinformation and, in this case, by an 
entirely unfounded and false fear of new taxes being imposed.
  So, Mr. Speaker, I want to state for the record that H.R. 2927, the 
Border Tax Equity Act, has a singular mission--to stop the offshoring 
of American jobs. It does not impose a value-added tax. In fact, this 
legislation is geared to fight a value-added tax, which would be 
imposed by foreign nations on American-made products. The Border Tax 
Equity Act stands up against foreign export subsidies and trade 
barriers that offshore U.S. jobs.
  Who is talking about this? When are we going to begin to protect 
American jobs?
  We can have all of the job creation and all of the stimulus. If we 
don't get to the heart of the issue, we are going to lose any 
manufacturing edge that we have. We are not a service job country. We 
need to have agrarian; we need to have service, and we need to have 
manufacturing jobs. Otherwise, God forbid, if we ever went to war, we'd 
have to buy our tanks from China right now. We have dismantled our 
manufacturing base. We have destroyed the infrastructure of 
manufacturing in this country. Let me make it clear.
  When I say ``export subsidies,'' what I am talking about are our 
trade partners--our allies, many of them, and some not our allies. They 
give rebates and monetary givebacks--I call them ``kickbacks''--to 
their own manufacturing companies. With a deal like that, it is 
impossible for our manufacturers to be on an even playing field, to 
compete or to stay in business.
  This is the heart of our trade inequity. Free trade, fair trade--
humbug. It doesn't go to the center of the issue. It seems that, 
lately, many have been confusing this bill with legislation that 
promotes a value-added tax when, in fact, the Border Tax Equity Act 
seems to level the playing field for U.S. producers of goods and 
services.
  When are we going to give a break to the manufacturers, both large 
and small, in the United States of America? When are we going to stop 
saying that free trade is the panacea for creating jobs in the United 
States? Take a look at what NAFTA did to this country. Take a look at 
how many jobs we've lost, not only in the United States, but in Mexico. 
It is a disaster.
  The Border Tax Equity neither imposes a value-added tax nor advocates 
for the imposition of one. I will repeat: It does not impose a value-
added tax.
  Walter Jones and I introduced this legislation to encourage U.S. job 
creation and economic growth. That is at the center of the recovery. 
Countering foreign border adjusted tax export subsidies and trade 
barriers are a must if America is going to kick-start manufacturing job 
creation and double our exports in the next 5 years.
  I also hope that this bill will shed light on our need to counter 
foreign border adjusted tax schemes that encourage the offshoring of 
production of U.S. goods and services. Here is a perfect example:
  The rising export subsidies and trade barriers of foreign border 
adjusted taxes were a key contributor to the loss of 5.7 million 
manufacturing jobs over the last decade. It is the prime reason why 
U.S. industrial output is less today than it was 10 years ago, and this 
is despite a 50 percent increase in the global gross domestic product. 
Foreign border adjusted tax schemes are designed to make U.S.-produced 
goods and services less competitive by making exports to the United 
States cheaper, cheaper, cheaper so they can build more Wal-Marts, more 
Wal-Marts, more Wal-Marts and so they can put more people out of jail 
than are in the United States of America. That is fact, not fiction.
  So, Mr. Speaker, I ask that we get the facts straight on what we are 
talking about.

                          ____________________