Letter Opposing Amendment #2 to H.R. 3221, the "American Housing Rescue and Foreclosure Prevention Act of 2008"

May 7, 2008

TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:

The U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, urges you to oppose Amendment #2 to H.R. 3221, the "American Housing Rescue and Foreclosure Prevention Act of 2008."

The Chamber strongly opposes the provisions in this amendment that would delay implementation of the worldwide interest allocation rules and would reduce or limit the benefit of the worldwide interest allocation rules once implemented. These changes are tantamount to a retroactive tax increase on businesses. Further, the worldwide interest allocation rules were enacted in 2004 and delaying their implementation or limiting their benefit effectively rewrites tax law changes that reformed rules widely recognized as anticompetitive and harmful to U.S. businesses operating in foreign markets.

For this reason, the Chamber urges you to oppose Amendment #2 to H.R. 3221, the "American Housing Rescue and Foreclosure Prevention Act of 2008." The Chamber may consider votes on, or in relation to, this issue in our annual How They Voted scorecard.

Sincerely,

R. Bruce Josten