Documents regarding the JOBS bill, as passed by the Senate
M E M O R A N D U M
To: Reporters and Editors
Re: targeted provisions versus anti-tax abuse
Da: Thursday, May 20, 2004
Sen. Chuck Grassley, chairman of the Committee on Finance, and Sen. Max Baucus, ranking member, today made the following comment on the targeted provisions in the Jumpstart Our Business Strength (JOBS) Act, S. 1637, repealing and replacing the Foreign Sales Corporation/Extraterritorial Income Act to bring the United States into compliance with its international trade obligations. Please note all cost estimates are over 10 years.
“Most of the media coverage of the JOBS Act has focused on the targeted provisions in thisbill. Some members have criticized these provisions, too, even as they’ve asked for items addressingtheir own issues of concern. Every provision in the bill is the result of a joint recommendation fromboth of us. It’s frustrating that the media haven’t properly described the fact that in addition to themember provisions, this bill contains the most sweeping series of tax loophole closers in decades.The cost of the targeted provisions pales in comparison to the money we’ll bring into the Treasuryby shutting off spigots of tax abuse. And the cost of the targeted provisions pales in comparison tothe tax relief that received support across the Senate.
“This bill has $74.6 billion dedicated to creating more domestic manufacturing. It hasanother $37.3 billion dedicated to international tax reforms to make our U.S. companies morecompetitive overseas. There’s another $17.6 billion in domestic manufacturing and domesticbusiness incentives, including the research and development tax credit.
“Some of that package deals with issues like the unfair tax on bows and arrows, which hasa domestic job impact. There’s another $2.2 billion dealing with the extenders, including apermanent tax credit directed at hiring hard-to-place workers. There’s another $1.9 billion dealingwith housing, rural areas, hard hit urban areas, Indian tribes, and other sectors of our economy.We’re directing resources at economic development, plain and simple.
“Finally, there’s another $19.4 billion for the bipartisan Finance Committee energy incentivespackage that’s passed the Senate twice before.
“All of this is offset with measures aimed at curtailing tax abuse. These include provisionsto shut down corporate and individual tax shelters, including ending corporate tax deductions oftaxpayer funded assets, such as sewer lines and subway systems, legislation to prevent corporate andindividual expatriation, comprehensive anti-tax shelter legislation, post-Enron corporate governancereforms, and specific measures that attack shelters used by Enron. These measures raise $85 billionfor the Treasury.
“These targeted provisions, or so-called pork provisions, cost less than 1 percent of the totalcost of the bill. We challenge the critics to remember the many provisions that aren’t gettingheadlines.”
Attached are a breakdown of the bill’s costs prepared by the Finance Committee staff andthe final score from the Joint Committee on Taxation.
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