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Emergency Economic Stability Act

Floor Speech

Date: Oct. 2, 2008
Location: Washington, DC
Issues: Government Budget and Spending


EMERGENCY ECONOMIC STABILITY ACT -- (Senate - October 02, 2008)

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TIMBER TAX PROVISIONS

Mrs. LINCOLN. Mr. President, I am concerned that this stabilization package, which includes0package of business tax incentives, does not extend the timber tax provisions that were enacted in sections 15311 and 15312 of the farm bill and which are scheduled to expire in May 2009. I and others have long advocated the enactment of provisions that would permanently reform the tax rules for timber income. Given budget constraints, as part of the farm bill, we established the new rules for 1 year as a first step. It is important that the provisions not be allowed to lapse. Otherwise, our good work could be undone because we will revert to the same situation as before in which companies that harvest timber are subject to higher tax rates simply because of their form of business organization.

As we consider tax extenders legislation, my specific concern is that, by extending a variety of expiring tax provisions until the end of 2009 but not extending the timber tax provisions, we may create the impression that the timber tax provisions are not likely to be extended. Because of this concern, I am interested in learning, from the chairman and ranking member of the Finance Committee, about their plans for considering an extension of the timber tax provisions.

Mr. SMITH. Mr. President, I agree with Senator Lincoln. We made good progress in enacting the timber tax provisions in the farm bill, but we must take the important next step of making the provisions permanent or, at the very least, extending them.

Mrs. MURRAY. Mr. President, I would like to agree with the points made by my colleagues. The timber tax provisions are critically important to Washington and other States that rely on timber jobs, and the provisions must be extended promptly. I have discussed this matter with the chairman of the Finance Committee, and he has assured me that he will work to extend the provisions early next year.


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