Today, President George W. Bush signed the JOBS Act which reduces corporate tax rates for domestic manufacturers, allows American companies to repatriate their foreign profits back into America at a lower tax rate, and most importantly, remove tariffs being placed on American companies by the European Union (EU).
The importance of this legislation to American taxpayers, workers, and economy cannot be underestimated. The legislation signed by President Bush today removes tariffs being placed on American companies, which is the equivalent of a $4 billion tax cut per year for American businesses and workers. The previous Foreign Sales Corporations (FSCs) and the extraterritorial income exclusion (ETI) export subsidies were found to be in violation of World Trade Organization (WTO) agreements. As a result, the EU was imposing tariffs on American companies at 12 percent, which were acting like a tax on American businesses and workers. These tariffs were obviously inflicting damage on the U.S. economy.
"Today, President Bush signed legislation removing discriminatory tariffs being placed on American companies and cutting taxes for American manufacturers to make our economy more competitive globally," said Grover Norquist, president of Americans for Tax Reform. "These provisions will boost jobs and growth in America, but today's signing also leaves Sen. John Kerry with no economic plan."
With just 11 days to go until the presidential election, Democratic presidential candidate Kerry has no economic plan left. The Kerry plan for 10 million jobs relied on cutting the corporate tax rate for domestic manufacturers by 5 percent and allowing companies to repatriate their foreign profits back into America at a 10 percent tax rate. The legislation signed by President Bush today cuts the corporate tax rate by 9 percent and allows companies to repatriate their foreign profits back into America at a 5.25 percent rate. So not only has this legislation removed the Kerry team from having an economic plan, the legislation signed by Bush is superior in economic growth.
"The only two provisions left in the Kerry economic plan are raising taxes on America's small businesses and a 1970's era job tax credit that did not work then and definitely will not work now," continued Norquist. "I find it quite ironic after all of Kerry's complaining about jobs and his "plan" for these jobs, he has absolutely no plan 11 days before election other than to damage the American economy."
