WASHINGTON – Today, the full Committee on Ways and Means approved H.R. 2896, the American Jobs Creation Act of 2003, by a vote of 24 – 15. Included in the bill was a section that provided guidlines for the IRS’s use of private colleciton agencies to collect back taxes. (for more background on HR 2896, please click here)
“The American Jobs Creation Act does just that – creates jobs for American workers,” said Bill Thomas (R-CA), Chairman of the Committee on Ways and Means and sponsor of the bill. “We will protect and expand jobs for hard-working Americans.”
The American Jobs Creation Act includes tax relief and investment incentives for U.S. employers of all sizes. Notably, the American Jobs Creation Act:
- Reduces the tax rate for U.S. producers and manufacturers from 35 to 32 percent;
- Includes an across-the-board rate cut for all C-corporations with less than $20 million in taxable income;
- Expands the size of companies exempt from the unfair corporate Alternative Minimum Tax (AMT) from $7.5 million of gross receipts all the way up to $20 million; and
- Repeals the Foreign Sales Corporation-Extraterritorial Income (FSC-ETI) tax regime to head off $4 billion in tariffs against U.S. goods.
“The American Jobs Creation Act aids U.S. manufacturers and businesses by providing tax relief and improving outdated areas of the Tax Code. Our international competitiveness has not been meaningfully enhanced in over 40 years. This bill will make the U.S. more competitive in the 21st century,” said Thomas.
