Marine Log - September 2008 - (Page 14) INSIDEWASHINGTON Legislation could help reinvestment in U.S. shipping ome much needed tax reform legislation introduced in the House in late June could help boost investment in U.S. flag shipping. H.R. 6374, the American Shipping Reinvestment Act, was introduced in the House by James McDermott (DWash.) on June 25 and referred to the House Committee on Ways and Means. The legislation seeks to amend the Internal Revenue Code of 1986 to repeal the shipping investment withdrawal rules in section 955 and provide an incentive to reinvest foreign shipping earnings in the U.S. The act would allow “U.S. shipping companies to bring back to the United States foreign earnings that would otherwise remain permanently invested overseas. If those S earnings are stuck overseas, they cannot be used to increase investment in U.S.flag ships and American jobs,” said Kenneth J. Kies, managing director, Federal Policy Group, a division of Clark & Wamberg LLC. The Federal Policy Group provides sophisticated strategic and technical tax advice on tax policy matters before the Congress, the U.S. Treasury Department, and Internal Revenue Service. Kies says Overseas Shipholding Group (OSG), for example, benefited greatly from the American Jobs Creation Act of 2004, which reinstated the tax deferral for a company’s foreign shipping income for years beginning after December 31, 2004. “It made them a stronger company,” he said. Other operators such as Tidewater, Inc., and Nicor, also benefited greatly. For example, in the wake of the tax change under the American Jobs Creation Act of 2004, Tidewater’s income tax rate fell from 32 to 35% to 20 to 24%. During Dec. 2005, Tropical Shipping, the containerized shipping arm of Nicor, repatriated about $132 million of cumulative undistributed foreign earnings under the provisions of the act. According to Kies, the American Shipping Reinvestment Act would create a twoyear window for shipping firms such as OSG to repatriate earnings that have been stuck overseas. Those earnings will be taxed at a rate of 5.25%—substantially better than the current statutory tax rate of 35%. 14 MARINE LOG SEPTEMBER 2008 www.marinelog.com http://www.wqis.com http://www.wqis.com http://www.marinelog.com
Table of Contents Feed for the Digital Edition of Marine Log - September 2008 Marine Log - September 2008 Editorial Second Thoughts Update Contents Inside Washington Slick Cleanup The Women of WISTA Keeping Ships at Sea Connected Shipbuilding Shakeup Newsmakers Tech News Contracts Events Website Directory ML Buyer's Guide ML Marketplace Letters Marine Salvage Marine Log - September 2008 Marine Log - September 2008 - (Page Intro) Marine Log - September 2008 - Marine Log - September 2008 (Page Cover1) Marine Log - September 2008 - Marine Log - September 2008 (Page Cover2) Marine Log - September 2008 - Contents (Page 1) Marine Log - September 2008 - Editorial (Page 2) Marine Log - September 2008 - Editorial (Page 3) Marine Log - September 2008 - Second Thoughts (Page 4) Marine Log - September 2008 - Second Thoughts (Page 5) Marine Log - September 2008 - Second Thoughts (Page 6) Marine Log - September 2008 - Update (Page 7) Marine Log - September 2008 - Update (Page 8) Marine Log - September 2008 - Update (Page 9) Marine Log - September 2008 - Update (Page 10) Marine Log - September 2008 - Update (Page 11) Marine Log - September 2008 - Update (Page 12) Marine Log - September 2008 - Update (Page 13) Marine Log - September 2008 - Inside Washington (Page 14) Marine Log - September 2008 - Inside Washington (Page 15) Marine Log - September 2008 - Inside Washington (Page 16) Marine Log - September 2008 - Slick Cleanup (Page 17) Marine Log - September 2008 - Slick Cleanup (Page 18) Marine Log - September 2008 - Slick Cleanup (Page 19) Marine Log - September 2008 - Slick Cleanup (Page 20) Marine Log - September 2008 - Slick Cleanup (Page 21) Marine Log - September 2008 - Slick Cleanup (Page 22) Marine Log - September 2008 - The Women of WISTA (Page 23) Marine Log - September 2008 - The Women of WISTA (Page 24) Marine Log - September 2008 - The Women of WISTA (Page 25) Marine Log - September 2008 - The Women of WISTA (Page 26) Marine Log - September 2008 - The Women of WISTA (Page 27) Marine Log - September 2008 - The Women of WISTA (Page 28) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 29) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 30) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 31) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 32) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 33) Marine Log - September 2008 - Keeping Ships at Sea Connected (Page 34) Marine Log - September 2008 - Shipbuilding Shakeup (Page 35) Marine Log - September 2008 - Shipbuilding Shakeup (Page 36) Marine Log - September 2008 - Shipbuilding Shakeup (Page 36A) Marine Log - September 2008 - Shipbuilding Shakeup (Page 36B) Marine Log - September 2008 - Shipbuilding Shakeup (Page 37) Marine Log - September 2008 - Newsmakers (Page 38) Marine Log - September 2008 - Newsmakers (Page 39) Marine Log - September 2008 - Tech News (Page 40) Marine Log - September 2008 - Tech News (Page 41) Marine Log - September 2008 - Contracts (Page 42) Marine Log - September 2008 - Events (Page 43) Marine Log - September 2008 - Website Directory (Page 44) Marine Log - September 2008 - ML Buyer's Guide (Page 45) Marine Log - September 2008 - ML Marketplace (Page 46) Marine Log - September 2008 - ML Marketplace (Page 47) Marine Log - September 2008 - ML Marketplace (Page 48) Marine Log - September 2008 - ML Marketplace (Page 49) Marine Log - September 2008 - ML Marketplace (Page 50) Marine Log - September 2008 - Letters (Page 51) Marine Log - September 2008 - Marine Salvage (Page 52) Marine Log - September 2008 - Marine Salvage (Page Cover3) Marine Log - September 2008 - Marine Salvage (Page Cover4)
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