"There

is an American worker on an assembly line, making a product that they

hope to sell to a customer in the U.S. or overseas," he continued.

"On an identical assembly line in another country, there is a foreign

worker making a similar product to sell to the same customer. Because

of our tax codes, the American worker is at a disadvantage. All of the

taxes required by U.S. tax regulations are added to the price of the product

and because foreign nations do not have similar tax provisions, they can

sell their products for less than American businesses holding back the

potential growth our economy needs to obtain more of the world's business

and create more jobs. It's all about jobs."

The bills introduced

today address four provisions of U.S. tax law; repeal of the Alternative

Minimum Tax on corporations and individuals, elimination of the double

taxation on stock dividends, reduction of the capital gains tax rates,

and calls for more realistic depreciation schedules for capital expensing.

The corporate

Alternative Minimum Tax (AMT) is an alternative tax structure put in place

in the 1980s which forces businesses to keep two sets of ledgers for tax

purposes. They must first calculate their tax bill under the standard

corporate tax rules, and then they must again calculate their tax bill

under a completely different set of rules established under the AMT. The

separated structure adds enormous accounting costs. The AMT usually requires

businesses to pay a higher rate of tax when they can least afford it during

economic downturn periods. Even businesses not subject to the AMT must

go through the computations to determine whether or not they are liable

for the tax.

he legislation

introduced last week will repeal the AMT and allow businesses to use the

AMT credits they have accrued over a five year period. AMT repeal is one

of the major initiatives sought by the U.S Chambers of Commerce to help

spur investment and job creation.

"The AMT

is a disincentive to invest that has long outlived its purpose,"

said Collins.

The current

Capital Gains Tax Rate in America is the highest of any industrialized

nation and creates a significant disincentive for investment. This in

turn causes a general economic sluggishness and prohibits business growth,

which is a major source of job creation. The recent legislation would

reduce the exorbitant rate and make it more in line with rates of taxation

in other nations with whom American workers compete.

The U.S. tax

code is also one of the few that double taxes the dividends on investment,

both at the corporate level and the individaual level. This legislation

will eliminate double taxation of dividends, which is an unfair burden

on taxpayers.

Depreciation

tax laws provide businesses the ability to deduct the costs of capital

investments over time. Current depreciation schedules are dramatically

out of line with the real economic life and use of the properties that

are being purchased in today's markets. Often the number of years allowed

for the deduction exceeds the number of years the investor may finance

the capital investment. The result is a higher tax cost. This legislation

will require the Secretary of the Treasury to further study depreciation

schedules and provide specific reform recommendations, which will bring

them more in line with the real economic life of assets.

"These

changes and other reforms will make the American worker more competitive

in the world market. By leveling this playing field we will keep more

American jobs in the United," Collins said.