Text: H.Res.705 — 108th Congress (2003-2004)All Information (Except Text)

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Engrossed in House (07/14/2004)

[Congressional Bills 108th Congress]
[From the U.S. Government Printing Office]
[H. Res. 705 Engrossed in House (EH)]

                 In the House of Representatives, U.S.,

                                                         July 14, 2004.
Whereas the World Trade Organization does not permit direct taxes, such as the 
        corporate income tax, to be rebated or reduced on exports;
Whereas indirect taxes, such as a value added tax, can be and are rebated on 
        exports in other countries;
Whereas the distinction by the World Trade Organization between direct and 
        indirect taxation is arbitrary and may induce economic distortions among 
        nations with disparate tax systems; and
Whereas United States firms pay a high corporate tax rate on their export income 
        and many foreign nations are allowed to rebate their value added taxes, 
        thereby giving exporters in nations imposing value added taxes a 
        competitive advantage over American workers: Now, therefore, be it
    Resolved, That the President--
            (1) within 120 days after the convening of the 109th Congress, and 
        annually thereafter, should report to Congress on progress in pursuing 
        multilateral and bilateral trade negotiations to eliminate the barriers 
        described in section 2102(b)(15) of the Trade Act of 2002; and
            (2) within 120 days after convening the 109th Congress, should 
        report to Congress on--
                    (A) proposed alternatives to the disparate treatment of 
                direct and indirect taxes presently provided by the World Trade 
                Organization; and
                    (B) other proposals for redressing the tax disadvantage to 
                United States businesses and workers, either by changes to the 
                United States corporate income tax or by the adoption of an 
                alternative, including--
                            (i) assessing the impact of corporate tax rates,
                            (ii) a system based on the principal of 
                        territoriality, and
                            (iii) a border adjustment for exports such as is 
                        already allowed by the World Trade Organization for 
                        indirect taxes.