Full Text of HR0044 96th General Assembly
HR0044 96TH GENERAL ASSEMBLY
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| HOUSE RESOLUTION
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| WHEREAS, The United States Tax Code requires income earned | 3 |
| in the United States by American firms to be taxed at the 35% | 4 |
| corporate income tax rate, but allows foreign subsidiaries of | 5 |
| these same firms to defer payment of corporate income tax on | 6 |
| income earned in a foreign jurisdiction until that income is | 7 |
| returned to the United States; and | 8 |
| WHEREAS, Neither the United States Tax Code nor Internal | 9 |
| Revenue Service regulations require American firms to | 10 |
| repatriate foreign income for the purpose of taxation; and | 11 |
| WHEREAS, This loophole has allowed American firms, such as | 12 |
| General Electric, Pfizer, and Exxon-Mobil, to collectively | 13 |
| park more than $500 billion in "undistributed earnings" | 14 |
| offshore; and
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| WHEREAS, A recent study concludes that these foreign income | 16 |
| deferrals caused the federal government to lose $17.4 billion | 17 |
| in tax revenue in the year 2004 alone and simultaneously caused | 18 |
| more economic growth in other countries and less here at home; | 19 |
| and
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| WHEREAS, This loophole harms the State of Illinois by | 21 |
| decreasing its tax base and encouraging corporate investment |
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| outside the United States; and
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| WHEREAS, During the 110th U.S. Congress, Senator Barack | 3 |
| Obama (now, President Obama), Senator Hillary Clinton (now, | 4 |
| Secretary of State Clinton), and Senator Richard Durbin took | 5 |
| steps to alleviate this problem by sponsoring a bill in the | 6 |
| U.S. Senate titled the Patriot Employers Act; and
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| WHEREAS, The Patriot Employers Act would have made a 1% tax | 8 |
| credit available to firms that retain their headquarters in the | 9 |
| United States and maintain or increase the number of their | 10 |
| full-time workers in the United States relative to the number | 11 |
| of their full-time workers outside of the United States; and
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| WHEREAS, The 110th Congress came to a close without passage | 13 |
| of that bill, and a comparable bill has yet to be introduced in | 14 |
| the 111th Congress; therefore, be it
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| RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | 16 |
| NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we | 17 |
| urge the members of Congress to introduce and give full | 18 |
| consideration to a bill comparable to the Patriot Employers Act | 19 |
| in order to ensure that American firms contribute their fair | 20 |
| share to our society's social welfare; and be it further
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| RESOLVED, That suitable copies of this resolution be |
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| presented to the Speaker and Minority Leader of the U.S. House | 2 |
| of Representatives, the Majority and Minority Leaders of the | 3 |
| U.S. Senate, and each member of the Illinois congressional | 4 |
| delegation.
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