Home > 106th Congressional Bills > S. 2236 (is) To establish programs to improve the health and safety of children receiving child care outside the home, and for other purposes. [Introduced in Senate] ...S. 2236 (is) To establish programs to improve the health and safety of children receiving child care outside the home, and for other purposes. [Introduced in Senate] ...
108th CONGRESS
2d Session
S. 2235
To rename the Department of Commerce as the Department of Trade and
Commerce and transfer the Office of the United States Trade
Representative into the Department, to consolidate and enhance
statutory authority to protect American jobs from unfair international
competition, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
March 25, 2004
Mr. Hollings introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To rename the Department of Commerce as the Department of Trade and
Commerce and transfer the Office of the United States Trade
Representative into the Department, to consolidate and enhance
statutory authority to protect American jobs from unfair international
competition, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Domestic Workforce Protection Act''.
SEC. 2. COMMERCE DEPARTMENT RENAMED AS DEPARTMENT OF TRADE AND
COMMERCE.
(a) In General.--The Department of Commerce is hereby redesignated
the Department of Trade and Commerce, and the Secretary of Commerce or
any other official of the Department of Commerce is hereby redesignated
the Secretary or official, as appropriate, of Trade and Commerce.
(b) Reference to Department, Secretary, etc. of Commerce Deemed
Reference to Department, Secretary, etc. of Trade and Commerce.--Any
reference to the Department of Commerce, the Secretary of Commerce, or
any other official of the Department of Commerce in any law, rule,
regulation, certificate, directive, instruction, or other official
paper in force on the effective date of this Act shall be deemed to
refer and apply to the Department of Trade and Commerce or the
Secretary of Trade and Commerce, respectively.
SEC. 3. TRANSFER OF THE OFFICE OF THE UNITED STATES TRADE
REPRESENTATIVE TO WITHIN THE DEPARTMENT OF COMMERCE AND
TRADE.
Section 141(a) of the Trade Act of 1974 (19 U.S.C. 2171(a)) is
amended by striking ``Executive Office of the President'' and inserting
``Department of Trade and Commerce''.
SEC. 4. TERMINATION OF DEFERRAL TO ELIMINATE TAX BENEFITS FOR OFFSHORE
PRODUCTION.
(a) General Rule.--Paragraph (1) of section 951(a) of the Internal
Revenue Code of 1986 (relating to amounts included in gross income of
United States shareholders) is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(A)(iii);
(2) by striking ``959(a)(2).'' in subparagraph (B) and
inserting ``959(a)(2); and''; and
(3) by adding at the end thereof the following:
``(C) the amount determined under section 956A with respect
to such shareholder for such year (but only to the extent not
excluded from gross income under section 959(a)(3)).''.
(b) Amount of Inclusion.--Subpart F of part III of subchapter N of
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting
after section 956 the following new section:
``SEC. 956A. EARNINGS OF CONTROLLED FOREIGN CORPORATIONS.
``(a) General Rule.--In the case of any controlled foreign
corporation, the amount determined under this section with respect to
any United States shareholder for any taxable year is the lesser of--
``(1) the excess (if any) of--
``(A) such shareholder's pro rata share of the
amount of the controlled foreign corporation's assets
for such taxable year, over
``(B) the amount of earnings and profits described
in section 959(c)(1)(B) with respect to such
shareholder, or
``(2) such shareholder's pro rata share of the applicable
earnings of such controlled foreign corporation determined
after the application of section 951(a)(1)(B).
``(b) Applicable Earnings.--For purposes of this section, the term
`applicable earnings' means, with respect to any controlled foreign
corporation, the sum of--
``(1) the amount referred to in section 316(a)(1) to the
extent such amount was accumulated in taxable years beginning
after February 29, 2004, and
``(2) the amount referred to in section 316(a)(2),
reduced by distributions made during the taxable year and reduced by
the earnings and profits described in section 959(c)(1) to the extent
that the earnings and profits so described were accumulated in taxable
years beginning after February 29, 2004.
``(c) Special Rule Where Corporation Ceases To Be Controlled
Foreign Corporation During Taxable Year-.--If any foreign corporation
ceases to be a controlled foreign corporation during any taxable year--
``(1) the determination of any United States shareholder's
pro rata share shall be made on the basis of stock owned
(within the meaning of section 958(a)) by such shareholder on
the last day during the taxable year on which the foreign
corporation is a controlled foreign corporation,
``(2) the amount of such corporation's assets for such
taxable year shall be determined by only taking into account
quarters ending on or before such last day, and
``(3) in determining applicable earnings, the amount taken
into account by reason of being described in paragraph (2) of
section 316(a) shall be the portion of the amount so described
which is allocable (on a pro rata basis) to the part of such
year during which the corporation is a controlled foreign
corporation.
``(d) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the purposes of this section,
including regulations to prevent the avoidance of the provisions of
this section through reorganizations or otherwise.''.
(c) Previously Taxed Income Rules.--
(1) In general.--Subsection (a) of section 959 of the
Internal Revenue Code of 1986 (relating to exclusion from gross
income of previously taxed earnings and profits) is amended by
striking ``or'' at the end of paragraph (1), by adding ``or''
at the end of paragraph (2), and by inserting after paragraph
(2) the following:
``(3) such amounts would, but for this subsection, be
included under section 951(a)(1)(C) in the gross income of,''.
(2) Allocation rules.--
(A) Subsection (a) of section 959 of the Internal
Revenue Code of 1986 is amended by striking ``paragraph
(2)'' in the last sentence and inserting ``paragraphs
(2) and (3)''.
(B) Section 959(f) of the Internal Revenue Code of
1986 is amended--
(i) by striking paragraph (1) and inserting
the following:
``(1) In general.--For purposes of this section--
``(A) amounts that would be included under
subparagraph (B) of section 951(a)(1) (determined
without regard to this section) shall be treated as
attributable first to earnings described in subsection
(c)(2), and then to earnings described in subsection
(c)(3), and
``(B) amounts that would be included under
subparagraph (C) of section 951(a)(1) (determined
without regard to this section) shall be treated as
attributable first to earnings described in subsection
(c)(2) to the extent the earnings so described were
accumulated in taxable years beginning after February
29, 2004, and then to earnings described in subsection
(c)(3).''; and
(ii) by striking ``section 951(a)(1)(B)''
in paragraph (2) and inserting ``subparagraphs
(B) and (C) of section 951(a)(1)''.
(3) Conforming amendment.--Subsection (b) of section 989 of
the Internal Revenue Code of 1986 is amended by striking
``section 951(a)(1)(B)'' and inserting ``subparagraph (B) or
(C) of section 951(a)(1)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after February
29, 2004, and to taxable years of United States shareholders in which
or with which such taxable years of foreign corporations end.
(e) Technical and Conforming Changes.--The Secretary of the
Treasury shall, within 90 days after the date of enactment of this Act,
submit to the Committee on Ways and Means of the House of
Representatives and to the Committee on Finance of the Senate, a draft
of any technical and conforming changes in the Internal Revenue Code of
1986 that are necessary to reflect throughout such Code the changes in
the substantive provisions of law made by this section.
SEC. 5. DISALLOWANCE OF DEDUCTIONS FOR CERTAIN OFFSHORE ROYALTY
PAYMENTS.
(a) In General.--Part IX of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
``SEC. 280I. CERTAIN OFFSHORE ROYALTY PAYMENTS.
``(a) In General.--In the case of a corporation, no deduction shall
be allowed for the payment of a royalty to an affiliated entity
organized and operated outside the United States in exchange for the
use of rights to a copyrighted or trademarked product if those rights
were transferred by the corporation or a related party to that entity.
``(b) Exception.--Subsection (a) does not apply to the payment of a
royalty if the taxpayer establishes, to the satisfaction of the
Secretary, that--
``(1) the transfer of the rights to the entity was for a
sound business reason (other than the reduction of liability
for tax under this chapter); and
``(2) the amounts paid or incurred for such royalty
payments are reasonable under the circumstances.''.
(b) Clerical Amendment.--The part analysis for such part is amended
by adding at the end the following:
``280I. Certain offshore royalty payments.''.
(c) Effective Date.--The amendments made by this section apply to
taxable years beginning after December 31, 2003.
SEC. 6. INCREASE IN AUTHORITY OF THE INTERNAL REVENUE SERVICE TO THWART
USE OF TAX HAVENS BY CORPORATIONS.
(a) In General.--Subchapter B of chapter 78 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``SEC. 7625. AUTHORITY TO FRUSTRATE USE OF CORPORATE TAX HAVENS.
``(a) In General.--The Secretary is authorized--
``(1) to deny any otherwise allowable deduction or credit
under chapter 1,
``(2) to recharacterize, reallocate, and resource income,
``(3) to recharacterize transactions, and
``(4) to disregard any transaction, trust, or other legal
entity,
determined by the Secretary to be necessary to prevent the use by a
corporation of a tax haven to avoid liability for tax under this
chapter.
``(b) Tax Haven Defined.--In this section, the term `tax haven'
means any country that meets the tax haven criteria established by the
Organization for Economic Co-operation and Development.''.
(b) Conforming Amendment.--The subchapter analysis for subchapter B
of chapter 78 of the Internal Revenue Code of 1986 is amended by adding
at the end the following:
``6725. Authority to frustrate use of corporate tax havens.''.
SEC. 7. ASSISTANT ATTORNEY GENERAL FOR TRADE.
(a) Position Established.--The Attorney General shall appoint an
Assistant Attorney General for Trade.
(b) Duties.--The Assistant Attorney General for Trade shall--
(1) investigate anticompetitive conduct by foreign
companies that has an adverse impact on the economy of the
United States (including manufacturing, agriculture, and
employment) or the global competitiveness of United States
companies;
(2) investigate violations of international trade
agreements to which the United States is a party that have an
adverse impact on the economy of the United States (including
manufacturing, agriculture, and employment) or the global
competitiveness of United States companies and take appropriate
action to seek redress or punishment for those violations; and
(3) investigate and initiate appropriate action against
other activities throughout the world that have an adverse
impact on the economy of the United States (including
manufacturing, agriculture, and employment) or the global
competitiveness of United States companies.
(c) Authority Is in Addition to Other Authorities.--The authority
granted to the Assistant Attorney General for Trade by this section is
in addition to, and not in derogation or in lieu of, any authority
provided by law to any other officer or agency of the United States
charged with enforcement of the trade laws of the United States or of
international agreements to which the United States is a party.
(d) Compensation.--Section 5315 of title 5, United States Code, is
amended by striking ``(10)'' in the item relating to Assistant Attorney
General and inserting ``(11)''.
SEC. 8. EMPLOYMENT OF ADDITIONAL CUSTOMS INSPECTORS FOR ILLEGAL
TRANSSHIPMENTS OF TEXTILES.
The Secretary of Homeland Security shall hire, train, and deploy
1,000 customs agents in addition to the number of customs agents
otherwise authorized by law or otherwise employed by the Department of
Homeland Security for the purpose of detecting and preventing illegal
transshipments of textiles to avoid textile import quotas and in
violation of trade agreements to which the United States is a party.
SEC. 9. INCREASED DOMESTIC PRODUCTION OF NATIONAL DEFENSE CRITICAL
GOODS.
(a) In General.--The Secretary of Commerce, in consultation with
the Secretary of Defense, the Director of the Central Intelligence
Agency, the Secretary of State, the Secretary of Homeland Security, and
the Administrator of the Small Business Administration shall develop a
program to encourage and support increased domestic production of goods
and products that are essential or critical to national security in
order to decrease the United States' dependence upon imports of such
goods and products.
(b) Support Program.--The Secretary of Commerce shall implement the
program developed under subsection (a) to the maximum extent feasible
through existing programs, including programs administered by the Small
Business Administration. The Secretary shall transmit to the Congress a
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