JOBS Bill Deadlock May Have Finally Been Broken

by Leroy Baker, Tax-News.com, New York

12 April 2004

The impasse that has been blocking the progress of a major international tax bill designed to repeal FSC-ETI legislation and ease EU sanctions, may have finally been broken after Senators agreed last Thursday to restrict the number of amendments attached to the bill.

The JOBS (Jumpstart Our Business Strength) bill will give US manufactures a 3% corporate tax cut, replacing a set of trade subsidies ruled illegitimate by the WTO. Supporters of the bill had hoped to see the proposals become legislation before the EU imposed tariffs on US exports in March. However, the bill’s progress has in recent weeks stalled as Senators fought over a growing number of unrelated amendments.

Last Thursday’s agreement will restrict the amount of amendments offered by Republicans to fifty, and limit the Democrats to thirty amendments. More importantly, the agreement will allow Senators to vote on the bill after returning from the Easter recess on April 19.

However, this will not be soon enough for the bill’s chief standard bearer, Charles Grassley, who fears that election year politics may scupper the chance to relieve EU tariffs and give US firms a tax cut.

“This situation has festered for much too long. It has been several years since the World Trade Organization ruled that the FSC/ETI regime did not meet our WTO obligations,” said the Senate Finance Committee Chairman.

“But because of political games and dilatory tactics by some in the Senate, this relief is not forthcoming.”

“In effect, this bill, and the American manufacturing sector are being held hostage - held hostage to Democratic demands to load this bipartisan legislation with a bunch of unrelated amendments,” he argued in a speech to the Senate Floor last week.

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