U.S. Rep. Ron Paul | Foreign Sales Corporation |
Foreign Sales Corporation
FSC Repeal And Extra-Territorial Income Exclusion Act Of 2000
September 12, 2000 2000 Ron Paul 73:10
* The WTO then, in its administration of the trade war, permitted the United States to put on punitive tariffs on over $300 million worth of products coming in to the United States from Europe. This only generated more European anger who then objected by filing against the United States claiming the Foreign Sales Corporation tax benefit of four billion dollars to our corporations was ‘a subsidy’.
Foreign Sales Corporation
CONFERENCE REPORT ON H.R. 2615, CERTIFIED DEVELOPMENT COMPANY PROGRAM IMPROVEMENTS ACT OF 2000
October 26, 2000 2000 Ron Paul 92:10
* We also make a mistake when we rush to change our domestic tax laws to comply with the ruling of an international body. Nobody in Congress or the administration wants to talk about it, but this is the first time in the history of our nation that we have changed our laws because an international body told us to do so. We are not considering this legislation because American citizens or corporations lobbied for it. We are considering it solely because of the demands of the WTO appellate panel, which agreed with EU complaints about our corporate income tax laws. We created the Foreign Sales Corporation rules back in the 1980s, but now the EU has decided our exempting a small portion of foreign source income from corporate taxes represents a ‘subsidy.’ We have plenty of federal subsidies in this country, but the FSC tax treatment assuredly is not one of them. FSCs do not receive a subsidy — no tax dollars are collected from taxpayers and given to FSCs. The FSC rules simply permit the parent corporation to pay less taxes on its foreign income. Most EU countries don’t tax their corporations on foreign income at all! So the EU complaint that the FSC represents a subsidy is ridiculous.
Foreign Sales Corporation
FSC Repeal and Extraterritorial Income Exclusion Act of 2000
14 November 2000 2000 Ron Paul 94:10
The WTO then, in its administration of the trade war, permitted the United States to put on punitive tariffs on over $300 million worth of products coming into the United States from Europe. This only generated more European anger who then objected by filing against the United States claiming the Foreign Sales Corporation tax benefit of four billion dollars to our corporations was “a subsidy.”
Foreign Sales Corporation
CHALLENGE TO AMERICA: A CURRENT ASSESSMENT OF OUR REPUBLIC —
February 07, 2001 2001 Ron Paul 7:91
We already accept the WTO and its international trade court. Trade wars are fought with this court’s supervision, and we are only too ready to rewrite our tax laws as the WTO dictates. The only portion of the major tax bill at the end of the last Congress to be rushed through for the President’s signature was the Foreign Sales Corporation changes dictated to us by the WTO.
Foreign Sales Corporation
POTENTIAL FOR WAR
February 08, 2001 2001 Ron Paul 10:19
The only portion of the major tax bill at the end of the last Congress to be rushed through for the President’s signature was the foreign sales corporation changes dictated to us by the WTO.
Foreign Sales Corporation
Statement Opposing Unconstitutional “Trade Promotion Authority”
December 6, 2001 2001 Ron Paul 103:3
The loss of national sovereignty inherent in government-managed trade cannot be overstated. If you don’t like GATT, NAFTA, and the WTO, get ready for even more globalist intervention in our domestic affairs. As we enter into new international agreements, be prepared to have our labor, environmental, and tax laws increasingly dictated or at least influenced by international bodies. We’ve already seen this with our foreign sales corporation tax laws, which we changed solely to comply with a WTO ruling. Rest assured that TPA will accelerate the trend toward global government, with our Constitution fading into history.
Foreign Sales Corporation
Before the House Ways and Means Committee
July 23, 2002 2002 Ron Paul 72:3
The Europeans argue, quite correctly, that we treat some foreign-source corporate earnings preferentially, i.e. we exempt from tax a portion of the earnings of foreign sales corporations (FSCs). This is not, however, an argument for abolishing the FSC — it is an argument for adopting a territorial tax system like many of our European critics!
Foreign Sales Corporation
The World Trade Organization
20 March 2000 Texas Straight Talk 20 March 2000 verse 9 ... Cached
The most blatant example of the World Trade Organization undermining US sovereignty was the recent ruling rejecting US tax breaks to US companies doing business overseas. The European Union charged that the Foreign Sales Corporation program established in 1984 is now an "illegal subsidy," and the WTO appellate panel supported this position. Despite the fact that the US unfairly taxes corporations for profits earned overseas, unlike our foreign competitors, this program was meant to compensate to some degree for this unfairness built into our tax code. Nevertheless the WTO, in a ridiculous ruling, claimed that allowing a company to keep more of its own money through lower taxes is a "subsidy" -- something given at the behest of government.
Foreign Sales Corporation
The World Trade Organization
20 March 2000 Texas Straight Talk 20 March 2000 verse 10 ... Cached
This example clearly demonstrates that membership in the World Trade Organization is in conflict with our Constitution, undermining our legal system and our sovereignty. The message is clear. For us to be a responsible member of the WTO we must follow the rules, and, if we do, Congress must capitulate and raise taxes on our corporations by repealing the Foreign Sales Corporation program. As was explained by the CRS, members are "legally obligated to insure national laws do not conflict with World Trade Organization rules."
Foreign Sales Corporation
U.S. Congress Bows to WTO Mandate
30 October 2000 Texas Straight Talk 30 October 2000 verse 5 ... Cached
More specifically, Congress voted to change our tax laws relating to Foreign Sales Corporations (FSCs), solely because the WTO appellate panel deemed that our FSC tax rules constituted a "subsidy" - the EU contingent in the WTO had brought a complaint to the panel. Our FSC rules simply allow U.S. corporations to exempt a small portion of income earned abroad from taxes. No "subsidy" is involved; no tax dollars are given to FSCs. Moreover, most EU countries do not tax their corporations on any income earned abroad. Still, the appellate panel agreed with the EU and gave the U.S an October 1st deadline to change our tax laws.
Texas Straight Talk from 20 December 1996 to 23 June 2008 (573 editions) are included in this Concordance. Texas Straight Talk after 23 June 2008 is in blog form on Rep. Paul’s Congressional website and is not included in this Concordance.
Remember, not everything in the concordance is Ron Paul’s words. Some things he quoted, and he added some newspaper and magazine articles to the Congressional Record. Check the original speech to see.