A bill to discourage domestic corporations from establishing foreign manufacturing subsidiaries in order to avoid Federal taxes by including in gross income of United States shareholders in foreign corporations the retained earnings of any such subsidiary which are attributable to manufacturing operations in runaway plants or tax havens, to provide that revenue from taxes imposed on such income shall be used to reduce the public debt and provide assistance to economically depressed areas, and for other purposes.

Summary

Amends the Internal Revenue Code to include in foreign base company income any foreign base company manufacturing related income for the taxable year. Defines "foreign base manufacturing related income" as any income derived from the sale of property by a controlled foreign corporation where the property sold was manufactured in any country other than the United States in either a tax holiday plant or in a runaway plant. Defines "tax holiday plant" and "runaway plant." Establishes in the Treasury the Economic Assistance Trust Fund (Trust Fund). Transfers to such Trust Fund 25 percent of the revenues raised due to taxes imposed on such foreign base company manufacturing related income. Authorizes expenditures from such Trust Fund for providing economic assistance in economically depressed areas. Provides that the remaining 75 percent of such revenues shall be used to reduce the public debt.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in House

  summary · EN · 2 April 1985

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.