H.R. 3160House110th Congress (2007-2009)In Committee

To amend the Internal Revenue Code of 1986 to prevent corporations from exploiting tax treaties to evade taxation of United States income.

Introduced July 24, 2007

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

July 24, 2007

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HouseIntro Referral

Introduced in House

July 24, 2007

HouseIntro Referral

Referred to the House Committee on Ways and Means.

July 24, 2007

Floor Debate

24 members

What members said about H.R. 3160 on the floor

15 Republicans9 Democrats
Doc Hastings
Rep. Doc HastingsR-WA-4 · Jul 26, 2007

Mr. Speaker, I want to thank the gentleman from California (Mr. Cardoza) for yielding me the customary 30 minutes, and I yield myself as much time as I may consume. (Mr. HASTINGS of Washington asked…

Dennis A. Cardoza
Rep. Dennis A. CardozaD-CA-18 · Jul 26, 2007

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 574 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Bob Goodlatte
Rep. Bob GoodlatteR-VA-6 · Jul 26, 2007

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, this is a sad day for this Congress. Farm bills are written in a bipartisan fashion. And I appreciate the comments of the gentleman from…

Lloyd Doggett
Rep. Lloyd DoggettD-TX-25 · Jul 26, 2007

New York Times, June 18, 2002. ``There would be no effect on legitimate multinational corporations like DaimlerChrysler that have not used a haven to avoid American taxes.'' Yesterday, 2:41 p.m.,…

James P. McGovern
Rep. James P. McGovernD-MA-3 · Jul 26, 2007

I thank my colleague from California for yielding me the time and for his work on this legislation. Mr. Speaker, I rise in support of this rule and in support of the underlying legislation. My…

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Doris O. Matsui
Rep. Doris O. MatsuiD-CA-5 · Jul 26, 2007

Mr. Speaker, I rise today in strong support of the rule we are considering today. Mr. Speaker, the Farm, Nutrition, and Bioenergy Act of 2007 is an important bill that outlines the funding for our…

Peter Welch
Rep. Peter WelchD-VT · Jul 26, 2007

Mr. Speaker, I thank the gentleman from California for his leadership on the Rules Committee and leadership on the Agriculture Committee in helping us work through this. I want to also thank the…

Jim McCrery
Rep. Jim McCreryR-LA-4 · Jul 26, 2007

Mr. Speaker, the previous speaker, the gentleman from Texas, talked about a memo from Treasury 5 years ago. The fact is, since that memo was sent out, or since that study was done, Treasury has…

Rosa L. DeLauro
Rep. Rosa L. DeLauroD-CT-3 · Jul 26, 2007

Mr. Speaker, this year we fought to make sure Americans do not just get more of the same from this Congress for its agriculture policy and the farm bill. And we should be proud of the results:…

Paul D. Ryan
Rep. Paul D. RyanR-WI-1 · Jul 26, 2007

I rise in opposition to this rule, Mr. Speaker, for many reasons. Number one, this has become common practice for the new majority. But the farm bill reauthorization calls for massive new entitlement…

David Dreier
Rep. David DreierR-CA-26 · Jul 26, 2007

Mr. Speaker, I rise in strong opposition to this rule and to the previous question. Let me just say that as I listened to my friend from California talk about the fact that he looks forward, at the…

Donald A. Manzullo
Rep. Donald A. ManzulloR-IL-16 · Jul 26, 2007

Mr. Speaker, I want to thank the Rules Committee for allowing debate on the Manzullo amendment to help the EQIP program. However, I'm deeply concerned about the Democrats' attempt to pit people who…

Earl Blumenauer
Rep. Earl BlumenauerD-OR-3 · Jul 26, 2007

I appreciate the gentleman's courtesy and his hard work. I witnessed for several hours yesterday the great challenges the Rules Committee faced, but I must confess that this rule puts a lot of us in…

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Ron Kind
Rep. Ron KindD-WI-3 · Jul 26, 2007

Mr. Speaker, I rise to inform my colleagues of a Fair reform amendment that I and others will offer later in this debate. For too long, our farm programs have given billions of taxpayer subsidies to…

Stevan Pearce
Rep. Stevan PearceR-NM-2 · Jul 26, 2007

Mr. Speaker, I have a point of order. Are we requested to address our comments to the Chair? Mr. Speaker, I thank the gentleman for yielding, and it is always imperative that we discuss issues that…

Charles W. Boustany, Jr.
Rep. Charles W. Boustany, Jr.R-LA-7 · Jul 26, 2007

Mr. Speaker, first of all, I want to say, again, the Agriculture Committee worked in good faith and in a bipartisan way to come up with a good product, a good bill. We all patted ourselves on the…

Ed Whitfield
Rep. Ed WhitfieldR-KY-1 · Jul 26, 2007

I want to commend all those for the hard work they have done on this rule. I must say that the American people today, 14 percent of the American people only, approve of Congress as an institution. I…

Tim Walberg
Rep. Tim WalbergR-MI-7 · Jul 26, 2007

Mr. Speaker, I rise in strong opposition to this rule. For several months, the House Agriculture Committee worked in a bipartisan manner to pass a bill that would make historic investments in…

K. Michael Conaway
Rep. K. Michael ConawayR-TX-11 · Jul 26, 2007

Mr. Speaker, for 18 months I've worked, along with my Democrat colleagues, to try to craft a bipartisan bill that we could be very proud of. Last week, it went through committee with some very hard…

Jerry Weller
Rep. Jerry WellerR-IL-11 · Jul 26, 2007

Mr. Speaker, I came to Washington this week with plans to vote for a bipartisan farm bill, a good bill that came out of committee. Lo and behold, I read that the Democrat leadership demanded that the…

Dave Camp
Rep. Dave CampR-MI-4 · Jul 26, 2007

I thank the gentleman for yielding. This rule will raise $7.5 billion in taxes on U.S. employers. Higher taxes are just one consequence of today's rule. It turns a blind eye to the 58 tax treaties…

Steve Kagen
Rep. Steve KagenD-WI-8 · Jul 26, 2007

Mr. Speaker, this rule asks a very simple question of all of us: Whose side are you on? Do you stand with overseas corporations who exploit American tax loopholes, or do you stand with American farm…

Phil Gingrey
Rep. Phil GingreyR-GA-11 · Jul 26, 2007

Mr. Speaker, while I see good reforms and programs in this farm bill, I also see onerous provisions such as a massive tax increase on foreign companies who are providing good jobs here in the United…

Deborah Pryce
Rep. Deborah PryceR-OH-15 · Jul 26, 2007

Mr. Speaker, just 2 days ago, the House was on track to pass this year's farm bill with a bipartisan vote. Then, in the eleventh hour, the Democratic leaders blindsided America with the news of how…

Bill Text

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Introduced in HouseIssued July 24, 2007

I

110th CONGRESS

1st Session

H. R. 3160

IN THE HOUSE OF REPRESENTATIVES

July 24, 2007

Mr. Doggett (for himself, Mr. Stark, Mr. Levin, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal of Massachusetts, Mr. McNulty, Mr. Pomeroy, Mrs. Jones of Ohio, Mr. Pascrell, Mr. Meek of Florida, Mr. Abercrombie, Mr. Ackerman, Mr. Andrews, Mr. Baird, Mr. Berman, Mr. Berry, Ms. Corrine Brown of Florida, Mr. Capuano, Ms. Carson, Ms. Clarke, Mr. Cleaver, Mr. Conyers, Mr. Costello, Mr. Cummings, Mr. Davis of Illinois, Mr. DeFazio, Mr. Delahunt, Ms. DeLauro, Mr. Edwards, Mr. Ellison, Mr. Farr, Mr. Fattah, Mr. Filner, Mr. Grijalva, Mr. Hare, Mr. Hinchey, Mr. Holt, Ms. Hooley, Mr. Jackson of Illinois, Ms. Jackson-Lee of Texas, Mr. Johnson of Georgia, Ms. Kaptur, Mr. Kennedy, Ms. Kilpatrick, Ms. Lee, Mr. McGovern, Mr. George Miller of California, Mr. Patrick J. Murphy of Pennsylvania, Mr. Nadler, Mr. Payne, Mr. Rush, Ms. Loretta Sanchez of California, Ms. Schakowsky, Mr. Sherman, Ms. Slaughter, Ms. Solis, Ms. Sutton, Mr. Tierney, Ms. Watson, and Mr. Waxman) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to prevent corporations from exploiting tax treaties to evade taxation of United States income.

1.

Limitation on treaty benefits for certain deductible payments

(a)

In general

Section 894 of the Internal Revenue Code of 1986 (relating to income affected by treaty) is amended by adding at the end the following new subsection:

(d)

Limitation on treaty benefits for certain deductible payments

(1)

In general

In the case of any deductible related-party payment, the amount of any withholding tax imposed under chapter 3 (and any tax imposed under subpart A or B of this part) with respect to such payment shall not be less than the amount which would be imposed if the payment were made directly to the foreign parent corporation (taking into account any income tax treaty between the United States and the country in which the foreign parent corporation is resident).

(2)

Deductible related-party payment

For purposes of this subsection, the term deductible related-party payment means any payment made, directly or indirectly, by any person to any other person if the payment is allowable as a deduction under this chapter and both persons are members of the same foreign controlled group of entities.

(3)

Foreign controlled group of entities

For purposes of this subsection—

(A)

In general

The term foreign controlled group of entities means a controlled group of entities the common parent of which is a foreign corporation.

(B)

Controlled group of entities

The term controlled group of entities means a controlled group of corporations as defined in section 1563(a)(1), except that—

(i)

more than 50 percent shall be substituted for at least 80 percent each place it appears therein, and

(ii)

the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563.

A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence).
(4)

Foreign parent corporation

For purposes of this subsection, the term foreign parent corporation means, with respect to any deductible related-party payment, the common parent of the foreign controlled group of entities referred to in paragraph (3)(A).

(5)

Regulations

The Secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance which provide for—

(A)

the treatment of two or more persons as members of a foreign controlled group of entities if such persons would be the common parent of such group if treated as one corporation, and

(B)

the treatment of any member of a foreign controlled group of entities as the common parent of such group if such treatment is appropriate taking into account the economic relationships among such entities.

.

(b)

Effective date

The amendment made by this section shall apply to payments made after the date of the enactment of this Act.