Investment in America Act of 2007

Mr. Speaker, although I have serious concerns with the underlying bill, H.R. 3996, there are several provisions of this bill that extend necessary business and individual tax relief set to expire this year.

One provision in H.R. 3996 would extend important tax relief for individuals who choose to make distributions from their Individual Retirement Accounts, IRAs, to charities. Charitable IRA rollovers greatly help the work of worthy charities, and it is important that this tool for giving remains available to taxpayers. I have introduced stand-alone legislation with Congressman Earl Pomeroy of North Dakota, which has 90 cosponsors that would broaden the charitable IRA rollover rule to allow distributions to donor-advised funds and would strengthen other aspects of the present-law provision. I remain committed to the enactment of the improvements included in the Public Good IRA Rollover Act, H.R. 1419, that would work to encourage billions in new giving to those who need it most.

This legislation also includes a provision that extends the Research and Development Tax Credit for an additional year. Firms in California already conduct nearly one-quarter of all our Nation's R&D activities by dollar value, making this credit critical to California's leadership in high tech innovation. I am a strong supporter of this provision, and am a cosponsor of stand alone legislation that would make important improvements in the R&D credit and extend it permanently, H.R. 2138.

H.R. 3996 also includes a 1-year delay of the 3 percent withholding burden on contractors that work with governments, which is scheduled to take effect starting in 2011. Earlier this year I introduced legislation with Representative Kendrick Meek of Florida that would do away with this added withholding requirement before it starts. Together, we have

worked to inform other representatives about the potentially damaging effects of this new cost of doing business with governments, and our legislation has attracted over 230 cosponsors, H.R. 1023.

Despite my opposition to the overarching legislation, I sincerely hope members of both parties can continue to work in a bipartisan fashion--as we have done on these three issues to-date. It is important that we move ahead with this important individual and business tax relief through legislation members from both parties can support, and not in the context of controversial new tax increases on the American people.

Madam Speaker, in my home State of Michigan, we have hit some hard times, and recently things have become worse as Michigan's Governor and tax-hiking State legislators inflicted a massive tax increase on the people of Michigan.

While in Congress, I am going to do all I can to aid Michigan's comeback, providing incentives for manufacturers and their employees to innovate, grow and expand. For example, American auto manufacturers spend $20 billion a year on research and development, and such investment and innovation among American automakers should be encouraged.

One positive step Congress can immediately take to continue similar innovation is to make permanent the research and development tax credit. This legislation would keep high-tech, high-paying jobs in America by maintaining important incentives and enable American companies to grow, become more competitive globally, and ultimately result in additional high-paying American jobs.

I urge my colleagues to support H.R. 2138, the research and development tax credit, and encourage further investment and growth in our great Nation.

Madam Speaker, I rise today to call on the House of Representatives to pass a permanent research and development tax credit. We are the strongest Nation on Earth, in large part because of the innovation inspired through research and development.

Throughout our history, America has led the way thanks to our innovators and entrepreneurs. Their contributions to our society have led us to a new era, but we cannot rest on these laurels.

Even now, people in Nebraska and throughout our country are looking beyond the horizon for new ways to strengthen and grow our small, rural communities. We owe it to them to do everything in our power to foster these new ideas.

We live in a world with unlimited innovation, and I look forward to seeing what the future will bring from further research and development.

I urge the House leadership to bring H.R. 2138, the Investment in America Act, to the floor as soon as possible.