American Jobs Creation Act of 2004

AMERICAN JOBS CREATION ACT OF 2004 -- (Extensions of Remarks - June 23, 2004)

SPEECH OF
HON. BETTY McCOLLUM
OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, JUNE 17, 2004

Ms. MCCOLLUM. Mr. Speaker, today the House is considering legislation touted as a bill to create jobs and help our struggling manufacturing industry when in fact it does nothing of the sort. Instead, H.R. 4520 would give U.S. multinational corporations more incentive to ship jobs overseas, adds $34 billion to the deficit and includes billions in tax breaks for special interests, while failing to help small businesses. Small business firms create 75 percent of all new
U.S. jobs every year and should be receiving tax relief in today's legislation.

In addition to a $10 billion tobacco buyout, this legislation includes tax breaks for special interests such as bow and arrow makers, tackle box companies, and sonar fish finders. Unfortunately the House Republican leadership chose to use the FSC/ETI repeal to provide a broad and complex tax break for large corporations, rather than more focused relief that would also benefit smaller manufacturers and farm cooperatives that create jobs and have production solely in the U.S.

Even the Bush Administration has expressed concern over several of the provisions of the bill. This legislation, by offering tax relief to manufacturing firms, but not giving a clear definition of what a manufacturing firm is, creates incentive for firms to characterize themselves as in manufacturing opening the tax code up to new abuses. For example, efforts have already been underway to include food processing and the mixing of water and concentrate to make a soft drink in the definition of manufacturing. Congress should not be creating incentives for businesses to manipulate their services.

There is a bipartisan proposal in Congress to stop the sanctions and create American jobs, but the Republican leadership blocked Democrats from offering this legislation as a substitute. This substitute would strike the provisions that promote shipping jobs overseas, add provisions to create more jobs in the U.S. by giving tax relief to American manufacturing including small business and farmers, and strikes the narrow special interest provisions. Furthermore the substitute is paid for by cracking down on tax shelters and corporations and individuals that move abroad to avoid paying taxes.

I strongly support providing tax relief to our manufacturing firms, businesses and family farmers, but it is irresponsible to only provide tax relief to large multinational corporations. I urge my colleagues to oppose this legislation and instead pass a bill that would provide benefits to all U.S. manufacturing firms, big and small, without the costly special interest buyoffs found in this legislation.