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To: Condor who wrote (14372)	10/2/2003 6:02:25 PM
From: Condor	Respond to of 48461

I found it but can't seem to pull it up. Can you post it? Thx C

To: Condor who wrote (14372)	10/2/2003 6:06:18 PM
From: Threshold	Read Replies (1) \| Respond to of 48461

Sure here it is. sfgate.com Senate approves bill cutting tax rates for domestic manufacturers MARY DALRYMPLE, AP Tax Writer Wednesday, October 1, 2003 -------------------------------------------------------------------------------- (10-01) 16:23 PDT WASHINGTON (AP) -- Extending a helping hand to struggling manufacturers, a Senate committee on Wednesday approved a bill that would lower tax rates for U.S. producers, while the White House voiced concerns that the measure favors manufacturers over other companies. The Senate Finance Committee, which voted 19-2 to approve the bill, drafted the new tax rate structure as a replacement for a $5 billion annual tax break for exporters that the World Trade Organization declared an illegal subsidy. The United States could face up to $4 billion in sanctions from the European Union next year if the tax break isn't eliminated. The bill gradually lowers the corporate tax rate to 32 percent for manufacturers who produce their goods in the United States. By the end of the decade, more multinational corporations can take advantage of the lower rates. Senators said the country's manufacturers desperately need the help. "We cannot afford to let this job loss continue," said Sen. Max Baucus, D-Mont. "We need to do something for the manufacturing sector." Two Republicans attempted to steer the bill toward reducing corporate tax rates for all businesses, including service and retail companies, and found an ally in the Treasury Department. Treasury Assistant Secretary Pam Olson said splitting the rate system for different corporations will create headaches for the IRS and for taxpayers. "It does favor one sector over another, which would have the effect of distorting investment decisions," she said. Senate Finance Committee Chairman Charles Grassley, R-Iowa, fired back that the issue forcing the committee to consider a corporate tax bill -- the illegal $5 billion tax break known as FSC, for "foreign sales corporations" -- has favored manufacturing over other sectors for decades. "It's so ludicrous you'd take the position that we're favoring one over another. What do you think FSC has been doing for three decades? And what do you think the administration did on steel when they put tariffs on?" he said. Grassley said Olson's statements during the committee debate were the first words of opposition he'd heard from the administration. "I have been working on (the issue) for 12 months and I don't recall a single statement from anyone in the administration on the exact way to do anything," he told reporters. House lawmakers have put forward two approaches for revising corporate taxes. Ways and Means Committee Chairman Bill Thomas, R-Calif., proposed a $120 billion, 10-year tax cut that would gradually reduce corporate tax rates to 32 percent for all but the nation's largest multinational corporations. Two other senior tax writers want to cut taxes for U.S. manufacturers by 10 percent, reducing the top rate from 35 percent to 31.5 percent. In a parallel effort to boost job creation at home, senators would allow companies with profits accruing abroad to bring the money back into the United States for one year at a 5.25 percent tax rate. Sen. Gordon Smith, R-Ore., said J.P. Morgan has estimated the influx of money and investment could create as many as 500,000 jobs. Thomas included a similar tax break for repatriated corporate income in his draft bill. Some senators questioned whether the government should reward companies that don't routinely reinvest in the United States. Olson said the Bush administration also questioned the fairness of the tax holiday. The committee voted 11-10 to reject a proposal by Sen. John Breaux, D-La., to make sure companies spend the money on job-creation activities. "The money's been made. The question is, what do you want to do with it?" said Sen. Rick Santorum, R-Pa. "Do you want to leave it there, or do you want to bring it back and create jobs?" The bill expands the realm of businesses that can call themselves manufacturers to include oil and gas industries and softwood lumber producers. Other portions of the bill streamline rules for multinational corporations with operations overseas by changing the system of foreign tax credits and the treatment of interest. The bill balances tax breaks for corporations with items that will bring more revenue into the Treasury. Lawmakers expect to raise nearly $15 billion by closing corporate tax shelters. It also extends customs fees for another decade. Lawmakers also added language allowing the Internal Revenue Service to hire bill collectors to help them recoup unpaid taxes. Grassley said he will ask Senate Majority Bill Frist, R-Tenn., to work the tax bill into the Senate's busy schedule before the end of the year. House Majority Leader Tom DeLay, R-Texas, said Monday that House leaders have asked Thomas to move his bill out of committee as soon as possible, preparing it for House debate in the next week or two. "The administration's top priority is getting a bill enacted that complies with the WTO ruling and avoids triggering $4 billion in EU trade sanctions," said Treasury Secretary John Snow. "The EU has stated the Congress needs to pass bills out of both houses by the end of the year to avoid such sanctions."