Max Baucus: “there is a parade of repentant sinners here. The Senator from New Mexico said he voted for it last time; it is a bad…”

“there is a parade of repentant sinners here. The Senator from New Mexico said he voted for it last time; it is a bad idea, and he is going to vote against it this time. I think the Senator from Massachusetts said the same thing: He voted for it last time, he learned it is a bad idea, it didn't work, and he is voting against it this time. I confess, Mr. President, I am in that same situation. I voted for this last time, it is a bad idea, it didn't work, and I am very much opposed to it this time. Both the Senators from North Dakota and New Mexico have stated the fact that this amendment is going to encourage companies to go overseas. That is true. But the effect is even more pernicious than that. This amendment encourages companies to go to low-tax jurisdiction countries, such as the Cayman Islands and the Bahamas. Why? Because, currently, an American company that has operations overseas, say the U.K., it pays the U.K. tax. It does not pay the American tax until it is brought back, with the U.K. tax offsetting the American tax. That is standard law. Under this amendment, because the income coming back will be at a very low rate--5 percent--there is no incentive for these companies to go to a higher jurisdiction country because there is no need to offset. Rather, there is an incentive to go to the lower jurisdiction country--a low-tax jurisdiction country--because the tax rate is so low, such as the Cayman Islands or the Bahamas, and all that.…”