House Passes Farm Bill With Revenue Raiser Focused on Foreign-Owned U.S. Companies

On July 27, 2007, the House passed the Farm, Nutrition, and Bioenergy Bill of 2007 (HR 2419) by a vote of 231 to 191. The legislation includes a revenue raiser that would tax the interest, management fees and royalties paid by foreign-owned U.S. companies to their foreign affiliates. Republicans have raised objections to the late insertion of this revenue raiser and have expressed hope that it can be stripped out in the Senate version of the legislation.