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Extensions of Remarks E1501 HON. DONNA M. CHRISTENSEN HON

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Extensions of Remarks E1501 HON. DONNA M. CHRISTENSEN HON August 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E1501 tax bill provides incentives for domestic film to the United States, there was scouting of a and can create a positive relationship between production. It must use all resources to cure sort that for all intent and purposes was open management and workers, where both reap the concerns presented in the two reports only to children of the military. However, it was rewards for successful company performance. outlined in this Article. Organizations, such For nearly 30 years the Internal Revenue as SAG, must work with Congress to develop not until February of 1930, just three years a proposal that is acceptable in terms of cost after Scouting was established in Puerto Rico, Service (IRS) has taken the position that the and other political considerations. that the first official Boy Scout Troop was income from these stock options is not subject While it seems unlikely that there is the formed in the United States Virgin Islands. to employment taxes. However, recent audits political will or desire to match the incen- Mr. Speaker, history was made twice on the and rulings on specific companies have raised tives offered by many of our competitors, it first of January 1965 when the Virgin Islands the troubling prospect that the IRS now be- is conceivable to the authors that an effec- got their own Boy Scout Council and Mr. Sam- lieves that employment taxes should be with- tive approach can be designed to substan- uel B. King became the first black council ex- held from the paychecks of individuals who tially close the gap on cost savings without ecutive in the entire Boy Scout movement in exercise stock options under these plans. eliminating them. Thus, the approach advo- Employee Stock Purchase Plans and Incen- cated involves identifying the level where the United States. cost savings of filming abroad are minimized During the last thirty-six years, the VIBSCA tive Stock Options were created by Congress so as not to be the determinative location have sent leaders to Wood Badge Courses in to provide tools to build strong companies and factor. An appropriate level may be in the Puerto Rico and to the U.S. mainland and in encourage greater employee ownership of range of ten percent cost savings versus the 1983, the first leadership Wood Badge course company stock. It was not the intent of Con- twenty-six percent cost savings now common was held at Howard M. Wall on St. Croix, U.S. gress to dilute these incentives by requiring in some Canadian locations. Virgin Islands. Wood Badge, very similar the employment tax withholding when the stock is It is important to note the strategy used to U.S. Army’s Basic Training regimen, is the purchased. fashion a remedy is just as important as the While I am pleased that the IRS currently relief sought. The industry should be willing highest training offered to selected male and to approach the tax-writing committee staff female leaders to enable them to better serve has in place a moratorium so that no employ- with the afore-mentioned concept and work the youth. The VICBSA has participated in ment taxes will be assessed on stock options, closely with them in designing a legislative eight National Jamborees, one World Jam- I believe Congress needs to clarify existing remedy. This strategy represents a holistic boree, nine Caribbean Jamborees and many law to prevent any future attempts to change approach to a global problem. It is important trips to Philmont Scout Reservation in past policy on stock options. The current mor- to remember the United States risks losing Cimmaron, New Mexico as well as many train- atorium extends until January 1, 2003, and un- its economic advantage in a vital industry ing courses locally and on the mainland for less Congress adopts the proposed legislation, which carries with it enormous economic companies and workers will face uncertainty consequences. As noted in the Department of both leaders and Scouts. Commerce Report: I am proud to represent this segment of my as to whether options are subject to with- If the most rapid growth in the most dy- constituency—the VIBSCA—because they holding taxes. namic area of film production is occurring have shaped and molded the minds and bod- The legislation I am introducing would clarify outside the United States, then employment, ies of thousands of Virgin Islands youth over that the difference between the exercise price infrastructure, and technical skills will also the past seventy-one years. As a result of and the fair market value of stock offered by grow more rapidly outside the United States, their work and service to the Virgin Islands the Incentive Stock Option or Employee Stock and the country could lose its competitive community, today many of these former Purchase Plan is excluded from employment edge in important segments of the film in- taxes. In addition, wage withholding is not re- dustry. scouts hold positions of influence and stature still contributing to the betterment of a rich and quired on disqualifying dispositions of Incen- VI. CONCLUSION tive Stock Option stock or on the fifteen per- Politics represents the art of the possible. flourishing Virgin Islands society. On behalf of a grateful Virgin Islands com- cent discount offered to employees by Em- The approach advocated in this Article ployee Stock Purchase Plans. should find a receptive ear in the halls of munity, my family, staff and myself, I wish to Congress if for nothing else than its sim- congratulate the Virgin Islands Council of the I urge my colleagues to join me in cospon- plicity. Timing is crucial. Left unchecked, Boy Scouts of America, its members, both soring this legislation. the only certainty is continuing runaway past and present, for their many contributions f production with the attendant economic to our community and for so generously giving CLOSE FINGER LAKES NATIONAL costs, lost jobs, and diminished tax revenues of themselves and their values to generations at all levels of government. In a time of wan- FOREST TO DRILLING ing economic growth and warning signs of of Virgin Islands youth over the years. dwindling surpluses and future economic May God continue to bless the Virgin Is- HON. JAMES T. WALSH lands Council of the Boy Scouts of America weakness, including production incentives OF NEW YORK and scouts all over our blessed Nation. Best into any upcoming tax relief is essential to IN THE HOUSE OF REPRESENTATIVES preserving the U.S. workforce in the Amer- wishes for an eventful, fulfilling ‘‘Boy Scouts ican entertainment industry. Tournament.’’ Wednesday, August 1, 2001 f f Mr. WALSH. Mr. Speaker, I rise today in op- position to proposals to drill for natural gas IN RECOGNITION OF THE VIRGIN BILL TO AMEND THE INTERNAL within the Finger Lakes National Forest lo- ISLANDS COUNCIL OF THE BOY REVENUE CODE OF 1986 TO CLAR- cated in Hector, New York between Seneca SCOUTS OF AMERICA IFY THE TREATMENT OF INCEN- and Cayuga Lakes. This proposed drilling will TIVE STOCK OPTIONS AND EM- have catastrophic effects on wildlife, recreation HON. DONNA M. CHRISTENSEN PLOYEE STOCK PURCHASE in the area, and tourism vital to the region’s OF THE VIRGIN ISLANDS PLANS economy. IN THE HOUSE OF REPRESENTATIVES The Finger Lakes National Forest is the smallest national forest in the country and Wednesday, August 1, 2001 HON. AMO HOUGHTON OF NEW YORK draws 46,000 recreational visitors each year Mrs. CHRISTENSEN. Mr. Speaker, I rise IN THE HOUSE OF REPRESENTATIVES who hunt, fish, camp, and hike on the 16,000- today to pay tribute to the Virgin Islands Coun- plus acre reserve. Any drilling in national Wednesday, August 1, 2001 cil of the Boy Scouts of America, (VIBSCA) for parks, including the proposed drilling in the their long-standing service to the people of the Mr. HOUGHTON. Mr. Speaker, today I am Finger Lakes National Forest which would uti- U.S. Virgin Islands and on the occasion of introducing a bill to solve a problem that has lize 130 foot rigs and pipelines, will cause ir- their being recognized by the organizers of the been facing a number of companies during the reparable damage to the landscape and envi- 29th Annual Open Atlantic Blue Marlin Fishing past year who grant stock options to their em- ronment. Tournament, popularly known as the ‘‘Boy ployees. Recently, my office has been flooded with Scouts Tournament,’’ held each year on St. Many companies use stock options as an letters from concerned neighbors across Up- Thomas. Considered the best of its kind, the incentive to attract and motivate employees. state New York. I have referred their cor- contest attracts top anglers from around the Companies give their workers the right to pur- respondence to Dale Bosworth, Chief of the globe. chase company stock, at a small discount United States Forest Service, to be included Scouting in the United States Virgin Islands from the listed price, through Employee Stock as part of the record on this issue. can be traced as far back as 1914. After the Purchase Plans and Incentive Stock Options. In addition, I have expressed my concern to transfer of the islands in 1917 from Denmark Employee stock ownership motivates workers Congressman CALLAHAN, Chairman of the VerDate 11<MAY>2000 05:07 Aug 03, 2001 Jkt 089060 PO 00000 Frm 00007 Fmt 0626 Sfmt 9920 E:\CR\FM\A01AU8.035 pfrm04 PsN: E02PT1 E1502 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 2001 House Appropriations Subcommittee on En- and I would like to take this opportunity to Rajasthan which is home to over 1,500 des- ergy and Water Development.
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