Press Releases

The United States Treasury Department issued rules on Thursday related to a provision in HR 4520.  Rep. Adam Smith (D-WA-09) has been a leader in advocating for this proposal since he introduced HR 1162, “The Invest in America Act” which was introduced in March of 2003.   

“I’m pleased that the Treasury Department has issued guidelines for the reinvestment provisions contained in last year’s broader tax legislation,” said Smith.  “In introducing the Democratic version of this provision, my goal was to enact a fiscally responsible, short-term tax incentive designed to stimulate the economy, encourage job growth and promote investment in domestic needs. This has been a long fight but companies today have some guidance to make business decisions that will bring funds back to the United States and help grow our economy.”

Smith introduced HR 1162 in March 2003 and garnered the support of 29 House colleagues.  This legislation was a key priority of the New Democrat Coalition (NDC) and was broadly supported by the NDC membership.  Smith led the Democratic effort to ensure inclusion of this proposal in the larger tax legislation. 

The law approved by Congress would let companies take advantage of the lower rate if they put forward a board-approved domestic reinvestment plan to reinvest their profits in ways that enhance employment in the United States.  Specifically, it allows companies a one-time opportunity to bring a total of as much as $500 billion in foreign profits into the United States and pay a tax rate of 5.25 percent, instead of the standard corporate tax rate of 35 percent.

Under the guidelines announced by the Treasury Department today, firms can use the repatriated earnings for hiring and training workers, capital investments, research and development, certain acquisitions, and advertising and marketing.  The repatriated funds cannot be used for executive compensation, intercompany transactions, increased dividends, stock redemptions, portfolio investments, purchase of debt instruments or tax payments.

“I’m pleased that the Treasury Department has adopted rules that will ensure companies using the repatriation tax provision will truly be investing in America’s economy,” Smith said.  “I’ll continue to monitor the law as we move forward.”

U.S. Representative Adam Smith (D-WA) spoke on CNN and Fox News today from Jerusalem about his thoughts on the Palestinian elections and their impact on the Middle East peace process. Smith noted that, “The Palestinian people have not had true leadership. They have had a corrupt and ineffective government that they had no faith in.” With the likely victory of Mahmoud Abbas, the Interim Chairman of the Palestinian Liberation Organization (PLO), as Prime Minister of the Palestinian people, Smith noted that “with a legitimate government where the people of Palestine have a chance to have a voice, to have a say, to have some control over their destiny, that just opens a wide range of options.”

More broadly, Smith believes that the elections bring a “great opportunity to bring democracy to the Middle East. Once the Palestinian people feel that freedom of empowerment to elect their own government, they will have a more responsive government and that could change the entire dynamic between the Palestinians and Israel.”

Smith stated that the United States needs to “enhance [its] credibility in the Arab world and other Muslim communities as well so that [the United States] can get some credibility back to be an effective partner in the Middle East.”

Smith also stated that “If Mahmoud Abbas gives the Palestinian people a better life, more opportunity, more freedom, then they can see democracy makes a concrete difference in their lives.”

Smith is the only Democrat that serves on both the House Armed Services and International Relations committees. He represents the 9th District of Washington state and is currently serving in his 5th term in Congress.

Rep. Adam Smith (D-WA) made the following statement on the death of Rep. Robert Matsui (D-CA):

“America has lost a great leader with the death of Rep. Bob Matsui. His story embodies so much of what is great about America: after being imprisoned in a World War 2 internment camp for Japanese-Americans, he worked hard and made his way to Congress so that he could fight for the rights of all Americans.  His leadership in rectifying the wrongs of the World War 2 internment camps is but one notable accomplishment in his long career in public service, but it is such an important one that he will undoubtedly be forever remembered for it. 

His commitment to the Asian-American community was unending and he was determined that every American should be treated equally. I enjoyed working with him on issues ranging from Social Security to trade to taxes.  We will miss Congressman Matsui’s counsel, his strong but patient leadership and his clear vision for a strong future for all Americans.”
 

Congressman Adam Smith (D-WA) made the following statement today concerning the attack on the U.S. Army base in Mosul, Iraq:

“First and foremost, my thoughts and prayers are with the family members and friends of those service members who were killed and wounded today in the vicious and cowardly attack on the dining hall at Camp Marez, Iraq. The soldiers stationed at Fort Lewis are always at the forefront of my thoughts and on a day like today, I cannot help but be in awe of the sacrifices that they and their families make each and every day.

I express my sorrow to the families of these brave soldiers and extend my heartfelt thanks and gratitude during this trying time.”

Congressman Adam Smith (D-Tacoma) made the following statement regarding the failure of the Republican Congress to enact the recommendations of the 9/11 Commission.

“This past weekend, the Republican House leadership had the opportunity to pass bipartisan intelligence reform legislation that would have made the American people safer. Instead, petty partisan politics interfered and did not allow this bill to proceed.

Back in September I called for the implementation of the recommendations of the 9/11 commission. I even cosponsored a bill that would have created a strong National Intelligence Director with real budget authority, improved Congressional oversight of the Intelligence community among other things.

Republicans control the House, the Senate and the White House and the blame for this failure rests on their shoulders. This legislation is too important to be used as a partisan football.

We must strengthen our intelligence capabilities and refocus our efforts on defeating international terrorist organizations. This bill provided legislation that is critical to the War on Terror and for strengthening America’s security.”