Pelosi and Daschle Send Letter to Bush on U.S. Manufacturing Jobs

September 15, 2003

Washington, D.C. -- House Democratic Leader Nancy Pelosi and Senate Democratic Leader Tom Daschle sent a letter to President Bush on Friday urging him to take steps to create U.S. manufacturing jobs.

The following is the full text of the letter sent by Pelosi and Daschle:

September 12, 2003

The President
The White House
Washington, D.C. 20500

Dear Mr. President:

The American manufacturing sector is in crisis. Since the beginning of 2001, more than 2.5 million American manufacturing jobs have been lost. In fact, manufacturing employment has fallen in each and every month of your Administration. It is clear that an economic policy based solely on tax cuts for the wealthiest people has failed to reverse the job losses in the manufacturing sector and throughout the economy. We need a new approach. Appointing a new Assistant Secretary of Commerce for Manufacturing may be a good symbolic first step, but we need to take effective action to put Americans back to work.

The upcoming debate over the tax treatment of exports presents a timely opportunity that we should seize together. The debate poses a stark choice: should we encourage manufacturing job creation in America or should we make changes to how overseas business activity is taxed? Our top priority is to create American jobs. We urge you to reconsider your previous position in light of the mounting jobs crisis.

In the House, as you know, Representatives Rangel, Crane and others have proposed a bipartisan bill that puts top priority on creating American manufacturing jobs. In the Senate, Chairman Grassley, Senator Baucus and other members of the Finance Committee are working on a bill with a similar U.S. manufacturing provision as its centerpiece. Importantly, both of these will be revenue neutral.

You proposed a different approach in your 2004 budget which stated:

"The Administration is proposing reform of the U.S. international tax rules, with a particular focus on reforming those aspects of the current-law rules that can operate to tax active forms of business income earned abroad before it has been repatriated and that can operate to limit the use of the foreign tax credit in a manner that causes the double taxation of income earned abroad." (emphasis added)

However, your proposal does not include a manufacturing jobs creation provision, and, regrettably, House Ways and Means Chairman Thomas' approach also focuses on overseas business activity. While some of these proposals may have merit and warrant attention, we believe that policies focused on immediate creation of manufacturing jobs in the United States must be our top priority.

This debate is about to be joined. We strongly urge you to endorse the approach taken by Representatives Rangel and Crane and Senators Baucus and Grassley, and take a strong position in support of creating U.S. manufacturing jobs. If you do, the legislation would likely pass Congress quickly. We hope you will agree, and look forward to working with you.

Sincerely,

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