[Congressional Record (Bound Edition), Volume 158 (2012), Part 3]
[Senate]
[Pages 4076-4078]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1946. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

                TITLE __--FOREIGN EARNINGS REINVESTMENT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Foreign Earnings 
     Reinvestment Act''.

     SEC. _02. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION 
                   FOR DIVIDENDS RECEIVED FROM A CONTROLLED 
                   FOREIGN CORPORATION.

       (a) Applicability of Provision.--
       (1) In general.--Subsection (f) of section 965 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Election; Election Year.--
       ``(1) In general.--The taxpayer may elect to apply this 
     section to--
       ``(A) the taxpayer's last taxable year which begins before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, or
       ``(B) the taxpayer's first taxable year which begins during 
     the 1-year period beginning on such date.

     Such election may be made for a taxable year only if made on 
     or before the due date (including extensions) for filing the 
     return of tax for such taxable year.
       ``(C) Election year.--For purposes of this section, the 
     term `election year' means the taxable year--
       ``(i) which begins after the date that is one year before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, and
       ``(ii) to which the taxpayer elects under paragraph (1) to 
     apply this section.''.
       (2) Conforming amendments.--
       (A) Extraordinary dividends.--Section 965(b)(2) of such 
     Code is amended--
       (i) by striking ``June 30, 2003'' and inserting ``September 
     30, 2011'', and
       (ii) by adding at the end the following new sentence: ``The 
     amounts described in clauses (i), (ii), and (iii) shall not 
     include any amounts which were taken into account in 
     determining the deduction under subsection (a) for any prior 
     taxable year.''.
       (B) Determinations relating to related party 
     indebtedness.--Section 965(b)(3)(B) of such Code is amended 
     by striking ``October 3, 2004'' and inserting ``September 30, 
     2011''.
       (C) Applicable financial statement.--Section 965(c)(1) of 
     such Code is amended by striking ``June 30, 2003'' each place 
     it appears and inserting ``September 30, 2011''.
       (D) Determinations relating to base period.--Section 
     965(c)(2) of such Code is amended by striking ``June 30, 
     2003'' and inserting ``September 30, 2011''.
       (b) Deduction Includes Current and Accumulated Foreign 
     Earnings.--
       (1) In general.--Paragraph (1) of section 965(b) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) In general.--The amount of dividends taken into 
     account under subsection (a) shall not exceed the sum of the 
     current and accumulated earnings and profits described in 
     section 959(c)(3) for the year a deduction is claimed under 
     subsection (a), without diminution by reason of any 
     distributions made during the election year, for all 
     controlled foreign corporations of the United States 
     shareholder.''.
       (2) Conforming amendments.--
       (A) Section 965(c) of such Code, as amended by subsection 
     (a), is amended by striking paragraph (1) and by 
     redesignating paragraphs (2), (3), (4), and (5), as 
     paragraphs (1), (2), (3), and (4), respectively.
       (B) Paragraph (4) of section 965(c) of such Code, as 
     redesignated by subparagraph (A), is amended to read as 
     follows:
       ``(4) Controlled groups.--All United States shareholders 
     which are members of an affiliated group filing a 
     consolidated return under section 1501 shall be treated as 
     one United States shareholder.''.
       (c) Amount of Deduction.--
       (1) In general.--Paragraph (1) of section 965(a) of the 
     Internal Revenue Code of 1986 is amended by striking ``85 
     percent'' and inserting ``75 percent''.
       (2) Bonus deduction in subsequent taxable year for 
     increasing jobs.--Section 965 of such Code is amended by 
     adding at the end the following new subsection:
       ``(g) Bonus Deduction.--
       ``(1) In general.--In the case of any taxpayer who makes an 
     election to apply this section, there shall be allowed as a 
     deduction for the first taxable year following the election 
     year an amount equal to the applicable percentage of the cash 
     dividends which are taken into account under subsection (a) 
     with respect to such taxpayer for the election year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount which bears the 
     same ratio (not greater than 1) to 10 percent as--
       ``(A) the excess (if any) of--
       ``(i) the qualified payroll of the taxpayer for the 
     calendar year which begins with or within the first taxable 
     year following the election year, over
       ``(ii) the qualified payroll of the taxpayer for calendar 
     year 2010, bears to
       ``(B) 10 percent of the qualified payroll of the taxpayer 
     for calendar year 2010.''
       ``(3) Qualified payroll.--For purposes of this paragraph:
       ``(A) In general.--The term `qualified payroll' means, with 
     respect to a taxpayer for any calendar year, the aggregate 
     wages (as defined in section 3121(a)) paid by the corporation 
     during such calendar year.
       ``(B) Exception for changes in ownership of trades or 
     businesses.--
       ``(i) Acquisitions.--If, after December 31, 2009, and 
     before the close of the first taxable year following the 
     election year, a taxpayer acquires the trade or business of a 
     predecessor, then the qualified payroll of such taxpayer for 
     any calendar year shall be increased by so much of the 
     qualified payroll of the predecessor for such calendar year 
     as was attributable to the trade or business acquired by the 
     taxpayer.
       ``(ii) Dispositions.--If, after December 31, 2009, and 
     before the close of the first taxable year following the 
     election year, a taxpayer disposes of a trade or business, 
     then--

       ``(I) the qualified payroll of such taxpayer for calendar 
     year 2010 shall be decreased by the amount of wages for such 
     calendar year as were attributable to the trade or business 
     which was disposed of by the taxpayer, and
       ``(II) if the disposition occurs after the beginning of the 
     first taxable year following the election year, the qualified 
     payroll of such taxpayer for the calendar year which begins 
     with or within such taxable year shall be decreased by the 
     amount of wages for such calendar year as were attributable 
     to the trade or business which was disposed of by the 
     taxpayer.

       ``(C) Special rule.--For purposes of determining qualified 
     payroll for any calendar year after calendar year 2011, such 
     term shall not include wages paid to any individual if such 
     individual received compensation from the taxpayer for 
     services performed--
       ``(i) after the date of the enactment of this paragraph, 
     and
       ``(ii) at a time when such individual was not an employee 
     of the taxpayer.''.
       (3) Reduction for failure to maintain employment levels.--
     Paragraph (4) of section 965(b) of such Code (relating to 
     limitations) is amended to read as follows:
       ``(4) Reduction in benefits for failure to maintain 
     employment levels.--
       ``(A) In general.--If, during the period consisting of the 
     calendar month in which the taxpayer first receives a 
     distribution described in subsection (a)(1) and the 
     succeeding 23 calendar months, the taxpayer does not maintain 
     an average employment level at least equal to the taxpayer's 
     prior average employment, an additional amount equal to 
     $75,000 multiplied by the number of employees by which the 
     taxpayer's average employment level during such period falls 
     below the prior average employment (but not exceeding the 
     aggregate amount allowed as a deduction pursuant to 
     subsection (a)(1)) shall be taken into income by the taxpayer 
     during the taxable year that includes the final day of such 
     period.
       ``(B) Average employment level.--For purposes of this 
     paragraph, the taxpayer's average employment level for a 
     period shall be the average number of full-time United States 
     employees of the taxpayer, measured at the end of each month 
     during the period.
       ``(C) Prior average employment.--For purposes of this 
     paragraph, the taxpayer's `prior average employment' shall be 
     the average number of full-time United States employees of 
     the taxpayer during the period consisting of the 24 calendar 
     months immediately preceding the calendar month in which the 
     taxpayer first receives a distribution described in 
     subsection (a)(1).
       ``(D) Full-time united states employee.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `full-time United States 
     employee' means an individual who provides services in the 
     United States as a full-time employee, based on the 
     employer's standards and practices; except that regardless of 
     the employer's classification of the employee, an employee 
     whose normal schedule is 40 hours or more per week is 
     considered a full-time employee.
       ``(ii) Exception for changes in ownership of trades or 
     businesses.--Such term does not include--

       ``(I) any individual who was an employee, on the date of 
     acquisition, of any trade or

[[Page 4077]]

     business acquired by the taxpayer during the 24-month period 
     referred to in subparagraph (A), and
       ``(II) any individual who was an employee of any trade or 
     business disposed of by the taxpayer during the 24-month 
     period referred to in subparagraph (A) or the 24-month period 
     referred to in subparagraph (C).

       ``(E) Aggregation rules.--In determining the taxpayer's 
     average employment level and prior average employment, all 
     domestic members of a controlled group shall be treated as a 
     single taxpayer.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 1947. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

TITLE IV--WAIVER OF JONES ACT REQUIREMENTS FOR OIL AND GASOLINE TANKERS

     SEC. 401. WAIVER OF JONES ACT REQUIREMENTS FOR OIL AND 
                   GASOLINE TANKERS.

       (a) In General.--Section 12112 of title 46, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``A coastwise'' and 
     inserting ``Except as provided in subsection (b), a 
     coastwise'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Waiver for Oil and Gasoline Tankers.--The 
     requirements of subsection (a) shall not apply to an oil or 
     gasoline tanker vessel and a coastwise endorsement may be 
     issued for any such tanker vessel that otherwise qualifies 
     under the laws of the United States to engage in the 
     coastwise trade.''.
       (b) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Commandant of the United 
     States Coast Guard shall issue regulations to implement the 
     amendments made by subsection (a). Such regulations shall 
     require that an oil or gasoline tanker vessel permitted to 
     engaged in the coastwise trade pursuant to subsection (b) of 
     section 12112 of title 46, United States Code, as amended by 
     subsection (a), meets all appropriate safety and security 
     requirements.
                                 ______
                                 
  SA 1948. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

TITLE IV--WAIVER OF JONES ACT REQUIREMENTS FOR OIL AND GASOLINE TANKERS

     SEC. 401. WAIVER OF JONES ACT REQUIREMENTS FOR OIL AND 
                   GASOLINE TANKERS.

       (a) In General.--The Commandant of the United States Coast 
     Guard may issue a coastwise endorsement to a oil or gasoline 
     taker vessel that does not meet the requirements of section 
     12112(a) of title 46, United States Code.
       (b) Period.--A coastwise endorsement issued under 
     subsection (a) shall expire no later than the date that is 6 
     months after the date of the enactment of this Act.
       (c) Regulations.--The Commandant shall ensure that a tanker 
     vessel issued a coastwise endorsement under subsection (a) 
     meets all appropriate safety and security requirements.
                                 ______
                                 
  SA 1949. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

                       TITLE IV--COASTWISE TRADE

     SEC. 401. REPEAL OF JONES ACT LIMITATIONS ON COASTWISE TRADE.

       (a) In General.--Section 12112(a) of title 46, United 
     States Code, is amended to read as follows:
       ``(a) In General.--A coastwise endorsement may be issued 
     for a vessel that qualifies under the laws of the United 
     States to engage in the coastwise trade.''.
       (b) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Commandant of the United 
     States Coast Guard shall issue regulations to implement the 
     amendment made by subsection (a). Such regulations shall 
     require that a vessel permitted to engaged in the coastwise 
     trade meets all appropriate safety and security requirements.
       (c) Conforming Amendments.--
       (1) Tank vessel construction standards.--Section 
     3703a(c)(1)(C) of title 46, United States Code, is amended by 
     striking ``Coast Guard and is qualified for documentation as 
     a wrecked vessel under section 12112 of this title.'' and 
     inserting ``Coast Guard.''.
       (2) Liquified gas tankers.--Section 12120 of title 46, 
     United States Code, is amended by striking ``United States,'' 
     and all that follows and inserting ``United States.''.
       (3) Small passenger vessels.--Section 12121(b) of title 46, 
     United States Code, is amended by striking ``12112,''.
       (4) Loss of coastwise trade privileges.--Section 12132 of 
     title 46, United States Code, is repealed.
       (5) Table of sections.--The table of sections for chapter 
     121 of title 46, United States Code, is amended by striking 
     the item relating to section 12132.
                                 ______
                                 
  SA 1950. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       At the end, add the following:

               TITLE IV--WAIVER OF JONES ACT REQUIREMENTS

     SEC. 401. WAIVER OF JONES ACT REQUIREMENTS.

       (a) In General.--The Commandant of the United States Coast 
     Guard may issue a coastwise endorsement to a vessel that does 
     not meet the requirements of section 12112(a) of title 46, 
     United States Code.
       (b) Period.--A coastwise endorsement issued under 
     subsection (a) shall expire no later than the date that is 6 
     months after the date of the enactment of this Act.
       (c) Regulations.--The Commandant shall ensure that a vessel 
     issued a coastwise endorsement under subsection (a) meets all 
     appropriate safety and security requirements.
                                 ______
                                 
  SA 1951. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2204, to eliminate unnecessary tax subsidies and 
promote renewable energy and energy conservation; which was ordered to 
lie on the table; as follows:

       On page 22, strike lines 4 and 5 and insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. PROHIBITION ON USE OF FEDERAL FUNDS RELATING TO 
                   ETHANOL BLENDER PUMPS AND ETHANOL STORAGE 
                   FACILITIES.

       Effective beginning on the date of enactment of this Act, 
     no funds made available by Federal law shall be expended to 
     construct, fund, install, or operate an ethanol blender pump 
     or an ethanol storage facility (unless the funds are expended 
     to construct, fund, install, or operate an ethanol blender 
     pump or an ethanol storage facility for use by motor vehicle 
     fleets operated by a Federal agency), including--
       (1) funds in any trust fund to which funds are made 
     available by Federal law; and
       (2) any funds made available under the Rural Energy for 
     America Program established under section 9007 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 8107).

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 401. DEFICIT REDUCTION.

                                 ______
                                 
  SA 1952. Mr. SANDERS (for himself, Mr. Blumenthal, Mrs. Feinstein, 
Mr. Tester, Mrs. McCaskill, Ms. Klobuchar, Mr. Levin, Mr. Franken, Mr. 
Brown of Ohio, Mr. Cardin, and Ms. Mikulski) submitted an amendment 
intended to be proposed by him to the bill S. 2204, to eliminate 
unnecessary tax subsidies and promote renewable energy and energy 
conservation; which was ordered to lie on the table; as follows:

       On page 22, strike lines 4 and 5 and insert the following:

                        TITLE III--MISCELLANEOUS

     SEC. 301. ENERGY MARKETS.

       (a) Findings.--Congress finds that--
       (1) the Commodity Futures Trading Commission was created as 
     an independent agency, in 1974, with a mandate--
       (A) to enforce and administer the Commodity Exchange Act (7 
     U.S.C. 1 et seq.);
       (B) to ensure market integrity;
       (C) to protect market users from fraud and abusive trading 
     practices; and
       (D) to prevent and prosecute manipulation of the price of 
     any commodity in interstate commerce;
       (2) Congress has given the Commodity Futures Trading 
     Commission authority under the Commodity Exchange Act (7 
     U.S.C. 1 et seq.) to take necessary actions to address market 
     emergencies;
       (3) the Commodity Futures Trading Commission may use the 
     emergency authority of the Commission with respect to any 
     major market disturbance that prevents the market from 
     accurately reflecting the forces of supply and demand for a 
     commodity;
       (4) Congress declared in section 4a of the Commodity 
     Exchange Act (7 U.S.C. 6a) that excessive speculation imposes 
     an undue and unnecessary burden on interstate commerce;
       (5) according to an article published in Forbes on February 
     27, 2012, excessive oil speculation ``translates out into a 
     premium

[[Page 4078]]

     for gasoline at the pump of $.56 a gallon'' based on a recent 
     report from Goldman Sachs;
       (6) on March 9, 2012--
       (A) the supply of crude oil and gasoline was higher than 
     the supply was on March 6, 2009, when the national average 
     price for a gallon of regular unleaded gasoline was just 
     $1.94; and
       (B) demand for gasoline in the United States was lower than 
     demand was on June 20, 1997;
       (7) on March 12, 2012, the national average price of 
     regular unleaded gasoline was over $3.82 a gallon, the 
     highest price ever recorded in the United States during the 
     month of March;
       (8) during the last quarter of 2011, according to the 
     International Energy Agency--
       (A) the world oil supply rose by 1,300,000 barrels per day 
     while demand only increased by 700,000 barrels per day; but
       (B) the price of Texas light sweet crude rose by over 12 
     percent;
       (9) on November 3, 2011, Gary Gensler, the Chairman of the 
     Commodity Futures Trading Commission testified before the 
     Senate Permanent Subcommittee on Investigations that ``80 to 
     87 percent of the [oil futures] market'' is dominated by 
     ``financial participants, swap dealers, hedge funds, and 
     other financials,'' a figure that has more than doubled over 
     the past decade;
       (10) excessive oil and gasoline speculation is creating 
     major market disturbances that prevent the market from 
     accurately reflecting the forces of supply and demand; and
       (11) the Commodity Futures Trading Commission has a 
     responsibility --
       (A) to ensure that the price discovery for oil and gasoline 
     accurately reflects the fundamentals of supply and demand; 
     and
       (B) to take immediate action to implement strong and 
     meaningful position limits to regulated exchange markets to 
     eliminate excessive oil speculation.
       (b) Actions.--Not later than 14 days after the date of 
     enactment of this Act, the Commodity Futures Trading 
     Commission shall use the authority of the Commission 
     (including emergency powers)--
       (1) to curb immediately the role of excessive speculation 
     in any contract market within the jurisdiction and control of 
     the Commission, on or through which energy futures or swaps 
     are traded; and
       (2) to eliminate excessive speculation, price distortion, 
     sudden or unreasonable fluctuations, or unwarranted changes 
     in prices, or other unlawful activity that is causing major 
     market disturbances that prevent the market from accurately 
     reflecting the forces of supply and demand for energy 
     commodities.

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 401. DEFICIT REDUCTION.

                          ____________________