[Congressional Record (Bound Edition), Volume 159 (2013), Part 13]
[Senate]
[Pages 19279-19281]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. INHOFE:
  S. 1833. A bill to amend the Internal Revenue Code of 1986 to 
eliminate the taxable income limit on percentage depletion for oil and 
natural gas produced from marginal properties; to the Committee on 
Finance.
  Mr. INHOFE. Mr. President, I would like to announce the 
reintroduction of a bill to amend the Internal Revenue Code to 
eliminate the taxable income limit on percentage depletion for oil and 
natural gas produced from marginal properties.
  Since 1926 small producers and millions of royalty owners have had 
the option to utilize percentage depletion to both simplify their 
accounting methodology and to account for the decline in the value of 
minerals produced from a property. Percentage depletion is particularly 
important to America's 700,000 low-volume marginal wells. The average 
marginal well produces barely 2 barrels per day, yet cumulatively they 
account for nearly 28 percent of domestic production in the lower 48 
states. Since every on-shore natural gas and oil well eventually 
declines into marginal production, the economic life span and 
corresponding production of all wells is extended by allowing the use 
of percentage depletion.
  Until 1998, the deduction marginal producers could take from 
percentage depletion was limited to 100 percent of taxable income from 
each individual property. Many producers, however, specialize in 
marginally producing wells and have many properties operating 
simultaneously. Naturally, some wells in a producer's portfolio are 
more productive than others. Some would have depletion rates greater 
than 100 percent of taxable income, while others would have depletion 
rates lower than the limit. Removing the taxable income limitation 
allows producers to take percentage depletion deductions on a 
portfolio-wide basis, which makes their entire operation more 
economical.
  Since 1998, Congress has understood this fact and has suspended the 
limitation. Unfortunately, the provision has never been made permanent. 
It has just been extended year after year as part of the Tax Extenders 
Package. Since we have had this suspension on the books for more than a 
decade, I think it is time to give producers the predictability they 
need by making this common sense tax accounting provision permanent.
  At a time when our unemployment rate remains over 7 percent, we need 
to be doing everything we can to encourage economic growth. The energy 
industry is a major contributor to our economy, and it has a lot of 
room to grow. The Congressional Research Service released a report that 
says the United States has the most energy potential under its soil 
than any other country on earth. Hiding beneath our soil are jobs, 
wealth, and lower deficits. We should allow this sector to grow. This 
is a common sense, easy way to do this, so I urge swift passage.
                                 ______
                                 
      By Mr. INHOFE:
  S. 1834. A bill to amend the Internal Revenue Code of 1986 to 
permanently extend the depreciation rules for property used 
predominantly within an Indian reservation; to the Committee on 
Finance.
  Mr. INHOFE. Mr. President, I would like to bring to your attention a 
bill I am reintroducing that would make permanent the current tax 
provision that allows capital assets on Indian lands to be depreciated 
on an accelerated schedule.
  For many years, the Federal tax code has provided an incentive for 
businesses to invest in operations on Indian reservations and lands 
across the country. According to the law, businesses that purchase 
capital equipment and use it on Indian lands will be able to depreciate 
it, on average, more than 40 percent faster than would otherwise be 
allowed.
  This tax provision is important to Oklahoma because of our 
longstanding history and unique relationship with Indian tribes. With 
our sluggish economy, we need to do all we can to encourage businesses 
to reinvest in and expand their operations, as this will create 
sustainable job growth.
  The accelerated depreciation schedule gives businesses the 
opportunity to recover investment dollars in capital assets more 
rapidly. This frees money

[[Page 19280]]

that would have been tied up in the value of their capital assets, such 
as buildings, equipment, and machinery and enables companies to 
reinvest it more quickly than was available with a slower depreciation 
schedule.
  The Oklahoma Department of Commerce has reported that many companies 
attribute this provision as a key reason for relocating to and 
expanding within the State. One Oklahoma food processing plant manager 
stated that the credit was a significant factor in the company's 
decision to expand.
  Additionally, today's announcement by Macy's, Inc. to locate a new, 
world-class online processing center in Tulsa was justified in part by 
the Indian lands tax provision. This new 1.3 million square feet 
facility will employ 1,100 people full time and will expand to 2,500 
people during peak periods. Construction on this project will begin in 
2014, and the facility will open for business in 2015. I could not be 
more excited by Macy's decision to expand its operations in Oklahoma. 
It is a testament to Oklahoma's strong, business friendly culture and 
capable work force.
  Although the accelerated schedule is currently allowed, the law 
states it will expire at the end of this year. The provision has 
typically been renewed each year, but many business leaders have 
expressed concern that it is not permanent, including the executives of 
Macy's.
  As a former businessman, I understand the problem of unpredictability 
and so do Oklahoma's business leaders who have expressed frustration 
over dramatically changing government policies ranging from 
environmental regulations to the tax code. This kind of environment 
makes it difficult for businesses to proceed with investment decisions. 
Businesses need stability, and this is particularly true during times 
of economic weakness. We in Congress should take this point seriously, 
and take a step in the right direction by making permanent this 
important tax provision.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1834

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PERMANENT EXTENSION OF DEPRECIATION RULES FOR 
                   PROPERTY ON INDIAN RESERVATIONS.

       (a) In General.--Subsection (j) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     paragraph (8).
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.
                                 ______
                                 
      By Ms. WARREN (for herself, Mr. Blumenthal, Mr. Brown, Mr. Leahy, 
        Mr. Markey, Mrs. Shaheen, and Mr. Whitehouse):
  S. 1837. A bill to amend the Fair Credit Reporting Act to prohibit 
the use of consumer credit checks against prospective and current 
employees for the purposes of making adverse employment decisions; to 
the Committee on Health, Education, Labor, and Pensions.
  Ms. WARREN. Mr. President, I come to the floor in support of the 
Equal Employment for All Act, a bill I introduced today with Senators 
Blumenthal, Brown, Leahy, Markey, Shaheen, and Whitehouse. This 
legislation would prohibit employers from requiring prospective 
employees to disclose their credit history as part of the job 
application process. It makes sure that hiring decisions are based on 
an individual's skill and experience--not on past financial problems. 
This is also about basic fairness. Let people compete for jobs on the 
merits, not on whether they have enough money to pay all their bills.
  Many people have bad credit because they hit hard times. They got 
sick, their husband left or their wife died or they lost their jobs. 
These are tough events under any circumstances, and they often put a 
real financial strain on a person. That strain sometimes results in 
late payments or an increase in the amount of money they must borrow.
  The problems of bad credit were compounded following the 2008 
financial crisis. Millions of people stumbled financially when 
shrinking home prices left them unable to refinance or to sell a home. 
Depreciated savings left people with a smaller financial cushion to 
survive fluctuations in their income. People lost their small 
businesses and found themselves mired in debt. For too many people, the 
fallout from the 2008 crisis also damaged their credit.
  Much of America, hard-working, bill-paying America, has a damaged 
credit rating, and the impact of that bad credit rating lasts a long 
time. Negative information generally remains on a credit report for 7 
years and, in some cases, it lasts even longer.
  Most people recognize that one consequence of bad credit is that they 
are going to have trouble borrowing money or they are going to pay more 
when they borrow. But for many people, a damaged credit rating can 
block access to a job. After a terrible blow--a job loss, a death in 
the family, a divorce, a serious medical problem--many people are 
scrambling to get back to work or to pick up a second job or to change 
jobs so they can get back on their feet financially, but they are 
knocked back by damaged credit. Today, highly qualified applicants with 
bad credit can be shut out of the job market. This is wrong.
  It was once thought a credit history would provide insight into a 
person's character and, today, many companies routinely require credit 
reports from job applicants. But research has shown that an 
individual's credit rating has little to no correlation with his or her 
ability to succeed in the workplace. A bad credit rating is far more 
often the result of an unexpected personal crisis or economic downturn 
than a reflection of someone's character or abilities.
  The Equal Employment for All Act would amend the Fair Credit 
Reporting Act to put an end to these unfair and harmful practices. This 
would benefit millions of American families down on their luck, giving 
them a chance to rebuild their financial security. It will particularly 
help women, minorities, students, and seniors because these groups are 
disproportionately likely to be hit hard by bad credit ratings. For 
example, the economic fallout from a divorce often hits women's 
finances particularly hard. It only gets more difficult for women when 
they apply for good jobs for which they are fully qualified, but they 
are barred because employers insist on examining their credit history.
  Another challenge with using credit reports during the job 
application process is that they are not always accurate. According to 
a February 2013 FTC report, 20 percent of consumers could identify at 
least one error in their credit reports.
  Unfortunately, someone whose credit report has a significant error 
may have trouble learning about the mistake and, even if the mistake is 
identified, have trouble getting it corrected in a reasonable time.
  According to the same FTC report, correcting credit report errors can 
be difficult to manage and the reporting agencies can be unresponsive. 
This means innocent job applicants are paying the price for a credit 
rating company's mistake.
  This is only one more way the game is rigged. A rich person who loses 
a job, gets divorced or faces a family illness is unlikely to suffer 
from a drop in his credit or her credit rating. But for millions of 
working families, a hard personal blow translates into a hard financial 
blow that will show up for years in a credit report. No one should be 
denied the chance to compete for a job because of a credit report that 
bears no relationship to job performance and that can be riddled with 
inaccuracies.
  In the aftermath of the 2008 financial crisis--a crisis that hammered 
middle-class families and from which millions of families are still 
struggling to recover--these practices should be stopped. It is time to 
give more families a chance to get back in the workforce and to get 
back on their feet.

[[Page 19281]]



                          ____________________