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On-Line Archive From August 1999 |
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July 2004
On-Line Edition
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| Tax measure would assist U.S. vessel operators |
| House of Representatives approves legislation backed by American maritime labor |
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The House of Representatives June 17 approved a labor-backed tonnage tax for U.S.-flagged merchant ships. The tax, which would replace most income taxes paid by U.S. shipping companies engaged in foreign trade, was included in the American Jobs Creation Act of 2004, a broad tax reform measure that sailed through on a 251-178 vote. The tonnage tax provision was sponsored by Rep. William Jefferson, a Louisiana Democrat. Under the Jefferson provision, qualified U.S.-flagged vessel operators can elect the tonnage tax as an alternative to income tax. The tax on a ship of 10,000 deadweight tons or larger would be 40 cents for every 100 net tons up to 25,000 net tons and 20 cents for every 100 tons thereafter. Rep. Jefferson said the tax option would make it easier for U.S.-flagged ships to compete against foreign-flagged ships for commercial cargoes worldwide and generate jobs for U.S. merchant mariners, longshoremen and others. |
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