House Passes American Jobs, Closing Tax Loopholes
and Preventing Outsourcing Act and also the COMPETES Act

WASHINGTON, DC– On Friday, Congressman John Garamendi (D-Walnut Creek, CA), voted for H.R. 5116, the America COMPETES Reauthorization Act, and H.R. 4213, the American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act. The COMPETES Act renews important investments in scientific research, while the American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act extends tax relief, funds government programs, extends essential benefits, and closes tax loopholes.
 
"Today, Congress continues to tackle our country’s most urgent need: reversing the effects of the Bush recession and creating American jobs," Congressman Garamendi said.

America COMPETES Act

COMPETES invests in scientific research at the Department of Energy’s Office of Science and the National Science Foundation. It also includes significant investments in education, including scholarships for teachers and students in Science, Technology, Engineering, and Math (STEM) education. More than 750 organizations have endorsed the bill, including the Chamber of Commerce and the Association of American Universities. Congressman John Garamendi, a member of the Science and Technology Committee, was responsible for three amendments to the bill. One requires a report to examine the current and potential uses of high-performance computational modeling and simulation by small- and medium-sized manufacturers. Another requires the Director of the Office of Science to prepare for the reliable, safe, sustainable, and economically competitive transfer of fusion power from public research to commercial development. The third directs the Department of Energy to create a roadmap for fusion energy production no later than 180 days after the release of a National Academies report on inertial fusion energy research.

Congressman Garamendi said "More than half of the growth in our country’s GDP since World War II can be attributed to the development and adoption of new technologies. This legislation will fund scientific research that is absolutely essential to spawning new businesses, assuring an educated workforce and creating good-paying jobs."

American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act

The American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act provides targeted tax incentives and investments in proven programs to boost employment. It includes tax credits for research and development and small businesses in low income-communities and in the construction sector. H.R. 4213 also continues the widely praised Build America Bonds and Recovery Zone Bonds, which allow local governments to fund priority projects, such as hospital and highway construction and job training. With the end of the school year approaching, the bill provides timely funding to support 350,000 summer jobs for youth and young adults ages 16-24.

"This legislation includes two crucial elements of our economic recovery: smart tax incentives and the shoring up of our social safety net," Garamendi said. "By extending unemployment insurance, we help Americans out of work through no fault of their own to still afford their groceries and home payments. In addition, this bill prevents a cut in physician reimbursement rates, so that millions of seniors, military retirees, and people with disabilities will have continued access to their doctors."

H.R. 4213 also contains provisions that are estimated to eliminate $14.451 billion of foreign tax credit loopholes.

"For too long, large corporations have exploited tax loopholes by slipping between foreign and U.S. tax codes," Garamendi added. "This system permits big businesses to evade their responsibilities and shifts the tax burden onto everyone else. It also encourages big businesses to move jobs from America to other countries. This Democratic-led Congress is saying no more. We are ending these perverse incentives, and we standing up for the American worker."

According to the National Journal, the economy is on pace to create more jobs this year than the entire eight years of the Bush Presidency. According to the non-partisan Congressional Budget Office, through the first quarter of 2010, the Recovery Act is responsible for up to 2.8 million jobs.