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1
HOUSE RESOLUTION 44

 
2     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 to
12 collectively park more than $500 billion in "undistributed
13 earnings" offshore; and
 
14     WHEREAS, A recent study concludes that these foreign income
15 deferrals caused the federal government to lose $17.4 billion
16 in tax revenue in the year 2004 alone and simultaneously caused
17 more economic growth in other countries and less here at home;
18 and
 
19     WHEREAS, This loophole harms the State of Illinois by
20 decreasing its tax base and encouraging corporate investment
21 outside the United States; and
 

 

 

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1     WHEREAS, During the 110th U.S. Congress, Senator Barack
2 Obama (now, President Obama), Senator Hillary Clinton (now,
3 Secretary of State Clinton), and Senator Richard Durbin took
4 steps to alleviate this problem by sponsoring a bill in the
5 U.S. Senate titled the Patriot Employers Act; and
 
6     WHEREAS, The Patriot Employers Act would have made a 1% tax
7 credit available to firms that retain their headquarters in the
8 United States and maintain or increase the number of their
9 full-time workers in the United States relative to the number
10 of their full-time workers outside of the United States; and
 
11     WHEREAS, The 110th Congress came to a close without passage
12 of that bill, and a comparable bill has yet to be introduced in
13 the 111th Congress; therefore, be it
 
14     RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
15 NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
16 urge the members of Congress to introduce and give full
17 consideration to a bill comparable to the Patriot Employers Act
18 in order to ensure that American firms contribute their fair
19 share to our society's social welfare; and be it further
 
20     RESOLVED, That suitable copies of this resolution be
21 presented to the Speaker and Minority Leader of the U.S. House

 

 

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1 of Representatives, the Majority and Minority Leaders of the
2 U.S. Senate, and each member of the Illinois congressional
3 delegation.