Dreier Votes to Approve American Jobs Creation Act

June 17, 2004

Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, praised the passage today of legislation aimed at making American manufacturers more competitive through tax relief and investment incentives. The American Jobs Creation Act of 2004, H.R. 4520, was approved with strong bipartisan support, 251-178.

“Our economy is once again in full swing, with over one million payroll jobs created in 2004,” Dreier said. “That number doesn’t even begin to account for the millions of self-employed Americans, but it’s terrific news that shows our economy is growing. Yet there is more we can do in order to make American manufacturers and businesses more competitive, more successful, and ultimately more profitable for their workers and investors. The legislation approved today offers the kinds of incentives that will help this job boom, and our economy, continue to expand.”

The American Jobs Creation Act provides tax relief for businesses of all sizes by: reducing the top tax rate for U.S. producers and manufacturers from 35 to 32 percent; providing $4 billion of relief from the Alternative Minimum Tax (AMT); enhancing the ability for small businesses to invest in new equipment and grow their businesses through expanded expensing provisions; providing $13 billion in transitional tax relief to manufacturers and producers in the United States over the next three years.

Also included in the legislation is a provision that temporarily reduces the tax rate on repatriated income (to 5.25 percent for one year) if the income is permanently reinvested in the United States. This idea, which was originally introduced by Congressman Dreier and Congressman Phil English (R-PA) last year, incentivizes American-owned companies who generate profits overseas to bring their income back to the U.S. and invest it here at home. This becomes a virtual shot in the arm for the American economy.

“Millions of Americans are working in new and exciting fields that we couldn’t have imagined ten years ago,” Dreier said. “Our economy is poised for its next real expansion. Providing companies with the incentives they need to create the new jobs of the next decade is what it will take to really get that expansion going.”