Chamber Urges the Vote for H.R. 4520, The American Jobs Creation Act of 2004
June 16, 2004
TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:
On behalf of the U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses of every size, sector and region, I write to urge you to vote for H.R. 4520, the American Jobs Creation Act of 2004, when it comes to the floor later this week.
H.R. 4520 is intended to bring us into compliance with our international trade agreement obligations by phasing-out and repealing the FSC-ETI regime. Until FSCETI is repealed, certain U.S. exports to the European Union (EU) are subject to retaliatory tariffs. The EU tariffs are currently eight percent, but will increase one percent each month, until March 2005 when they reach 17 percent, unless Congress acts
to repeal FSC-ETI.
The bill succeeds in balancing the many and sometimes competing interests of the business community. H.R. 4520 will provide a corporate tax rate cut for manufacturers, the primary beneficiaries of FSC/ETI. The bill also includes a number of important international tax simplification provisions that will help to make U.S.-based companies more competitive in the global marketplace. We also support the AMT relief provisions and earnings repatriation provision. In addition, we are pleased that the bill
includes the ethanol tax credit, which will make whole the Highway Trust fund.
For the small business members of the Chamber, H.R. 4520 includes a number of important provisions, such as an extension of section 179 expensing and numerous simplifications of the Subchapter S rules. The bill provides a tax rate cut for small and medium-sized corporations. We are also grateful for the inclusion of extensions of some of the expiring tax provisions, such as the R&E credit, which are important to the business community.
With the EU retaliatory tariffs now at eight percent and growing, we urge the House to quickly pass H.R. 4520 and move to a conference with the Senate. Because of the importance of the American Jobs Creation Act of 2004 to the business community, votes on or related to H.R. 4520 will be considered for inclusion in our annual "How They Voted" publication.
R. Bruce Josten
Executive Vice President, Government Affairs
U.S. Chamber of Commerce