Video archive of the US Congress

Senate Proceeding 02-03-09 on Feb 3rd, 2009 :: 4:35:35 to 4:41:15
Total video length: 7 hours 30 minutes Stream Tools: Stream Overview | Edit Time

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Max Baucus

4:35:32 to 4:35:54( Edit History Discussion )

Max Baucus: colleague did great work this time and you've done and i appreciate you on this. senator mr. baucus: mr. president, this may sound like a good idea, but it isn't. there are a lot of reasons.

Max Baucus

4:35:35 to 4:41:15( Edit History Discussion )
Speech By: Max Baucus

Max Baucus

4:35:55 to 4:36:17( Edit History Discussion )

Max Baucus: firstf question of fairness. fairness to american companies who do their business in america, companies who do their business in america and maybe significantly if you're an american company, you're doing business in america, let's say you're doing pretty well, you pay the

Max Baucus

4:36:18 to 4:36:40( Edit History Discussion )

Max Baucus: standard rate. that's if you're an american company. if you're an american company, but you've got significant overseas operations and subsidiaries and busines the cayman islands and offshore entities, you don't pay

Max Baucus

4:36:41 to 4:37:01( Edit History Discussion )

Max Baucus: the 75% rate. what do you pay? you basically pay 5%. thinks that about it. so the first level, this is totally unf here we are an american company doing business in america, got to patriot full -- got to pay the compared to the country that's

Max Baucus

4:37:02 to 4:37:24( Edit History Discussion )

Max Baucus: have overseas, they bring it back to the u.s. and they only pay 5%. now, these are companies taking advantage of the current tax law by bringing it home. especially bringing back home repatrioted income. under our tax laws, income by american company earned overseas

Max Baucus

4:37:25 to 4:37:45( Edit History Discussion )

Max Baucus: -- active income is -- is not taxed unless it's brought home to the united states. but when it is brought home it the united states, then it taxed at the basic 35% rate. there are some who claim that that revenue overseas is trapped. it's trapped overseas. be home. they have to pay our rate.

Max Baucus

4:37:46 to 4:38:06( Edit History Discussion )

Max Baucus: that is a totally unfair mischaracterization. it's not trapped. it would be trapped if you had to pay a penalty to bring it back, say a 70% rate. they bring it back with the ordinary rate, the rate other learn companies have to pay -- american companies have to pay. it's not trapped at all.

Max Baucus

4:38:07 to 4:38:28( Edit History Discussion )

Max Baucus: it's just that companies want to have an argument that they have the data shows that the last time we enacted something like this there were virtual united states. none. there are -- why is that? beca for other purposes. now, there is provisions in the

Max Baucus

4:38:29 to 4:38:51( Edit History Discussion )

Max Baucus: law that they had to do it to create jobs. money is fungible. money is fungible. so they say, ok, we'll use some of this to then we will use it for dividends, pay do something else. this is so easy to get around the nominal provisions in this amendment.

Max Baucus

4:38:52 to 4:39:12( Edit History Discussion )

Max Baucus: i must say also, mr. president, that -- this years. 0 billion for no good reason. no good reason. sure, if i were an american company and i had significant overseas operations and i parked a lot of my, say, patent

Max Baucus

4:39:13 to 4:39:33( Edit History Discussion )

Max Baucus: development over in the cayman islands, that's what they do many of them. they develop a patent in the united states and park it in the cayman islands, enjoy a low tax rate and generated by that patent back to the united states. that's what they want to do under this sure, fi were an american, i'd like -- if i were an american,

Max Baucus

4:39:34 to 4:39:55( Edit History Discussion )

Max Baucus: i'd like to do that. i don't want to pay taxes compared to the garden variety of americans that do have to pay taxes. mr. pr reasons why this is a bad idea. it will not create new jobs. in fact there is no job creation una study which i can put in the record on the last repatriation provision.

Max Baucus

4:39:56 to 4:40:16( Edit History Discussion )

Max Baucus: and we also know from the i.r.s. that most of 2004 came from bermuda and cayman islands and other ireland and it is not against

Max Baucus

4:40:17 to 4:40:39( Edit History Discussion )

Max Baucus: the law, but they w those countries. i d reward -- quote -- "bad conduct" by enacting this amendment. this is an enabling amendment. it encourages an enables future -- and enables where companies would, again, say develop a u.s. patent, put the cash over seas to a

Max Baucus

4:40:40 to 4:41:00( Edit History Discussion )

Max Baucus: subsidiary, say in the cayman islands, and then buys the patent and the money is repatrioted back and it is just very much at the expense of good, solid american companies doing business in america. so this -- and, as i said before, this amendment will not encourage business to reinvest in america. the last evidence shows that

Max Baucus

4:41:01 to 4:41:16( Edit History Discussion )

Max Baucus: th money's fungible. a lot of it went dividend payments and i must say also that -- that other information -- maybe just put

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