back FOR IMMEDIATE RELEASE  CONTACT: June 17, 2004 Kate Dwyer: 202-226-7326 Ryan Votes for American Jobs Creation Act Wisconsin’s First District Congressman Paul Ryan voted in favor of H.R. 4520, the American Jobs Creation Act of 2004 – legislation he helped shape as a member of the House Ways and Means Committee.  This legislation passed the House of Representatives today by a bipartisan vote of 251-178. The next step is for the House and Senate to negotiate and come to agreement on their differing versions of this bill.  H.R. 4520 repeals part of U.S. international tax law in order to end sanctions that are hurting Wisconsin’s manufacturers and farmers.  The measure also includes important benefits to make American businesses more competitive, such as lowering corporate tax rates – which are among the highest in the world – for domestic manufacturers, producers, farmers, and small corporations.  It also reduces double taxation of U.S.-based manufacturers, provides relief from the Alternative Minimum Tax (AMT), and extends an expensing provision that makes it easier for small businesses to invest in new equipment.  “Right now, we’re seeing job growth in manufacturing and across many other sectors, but if we want to keep making progress and hold onto these jobs, we need to fix the problems with our tax system,” Ryan said.  “Wisconsin businesses and farmers can compete with anyone.  But they shouldn’t face an uphill battle against tariffs that make their products a lot more expensive overseas.  And they shouldn’t have to shoulder a heavier tax burden than businesses in most other countries.  This bill gives American companies a level playing field in our tax code and helps ensure that job creation continues.” If it becomes law, H.R. 4520 will help create jobs in Wisconsin and throughout the rest of the nation by: Ending sanctions. American manufacturers and farmers are being hit with escalating tariffs that currently stand at 8 percent. These tariffs are increasing the price of U.S. goods sold overseas, thus reducing U.S. exports. Lower U.S. exports mean fewer U.S. jobs. H.R. 4520 moves to end these sanctions by repealing the part of our international tax law that violates World Trade Organization rules. Reducing corporate tax rates. The bill permanently cuts corporate tax rates for domestic manufacturers, producers, and farmers from 35 percent to 32 percent. That is, U.S. manufacturers will pay lower tax rates if they produce their goods in America. Income from overseas production will not get this reduced rate. Companies that are paying less in taxes have more money left over to create new jobs or retain existing ones. Moreover, a corporate rate cut will boost economic growth. The U.S. currently has one of the highest corporate tax rates in the world. The bill also lowers the corporate rate from 35 to 32 for all small U.S. corporations (with incomes less than $20 million.) Reducing double taxation of U.S.-based manufacturers. Currently, U.S. companies that do business overseas are taxed twice on the income they earn overseas. They are taxed both in the United States and in the country where the income is earned. This double taxation is only partially offset under current law. The bill includes several provisions to reduce double taxation and simplify taxes for these companies. Reducing double taxation will give companies an incentive to keep jobs in the United States, rather than shutting down their U.S. headquarters and relocating overseas where it is cheaper to do business.  Providing relief from the AMT. The bill provides significant tax relief for millions of small businesses and farmers by exempting them from the AMT. This will help businesses create new jobs. Making it cheaper for businesses to increase investment. H.R. 4520 includes several provisions that will make it cheaper for businesses to invest in new equipment. Increased investment helps the economy and boosts job growth.   back