Gregory Nickerson and the American Jobs Creation Act

Remember that huge $140 billion corporate tax break Congress passed in 2004, with the Orwellian name of the “American Jobs Creation Act”? Described by Senator John McCain as “the worst example of the influence of special interests that I have ever seen,” the bill's 600-plus pages were chock full of pork for pharmaceutical companies, the tobacco industry, cruise ship operators, and defense firms, among others.


A key architect of that bill was Gregory Nickerson, who at the time was Tax Counsel to then-Congressman Bill Thomas, the California Republican who headed the House Ways and Means Committee. (Nickerson simultaneously served as Staff Director to Congressman Jim McCrery of Louisiana, who chaired the Subcommittee on Select Revenue Measures.)


Now, guess who became a lobbyist almost as soon as the ink was dry on the Act? And has been signing up firms who benefited from his handiwork ever since?


Correct. Nickerson is now a principal with Angus & Nickerson, a consulting firm that “identifies tax issues, crafts legislative solutions, works with Congress to get legislation enacted, and resolves issues through the regulatory process by working with Treasury and the Internal Revenue Service.” Nickerson left his job at Ways and Means in February of 2005, which is the same month that Angus & Nickerson signed up its first client. His partner is Barbara Angus, who also left her job at the Treasury Department—she served as International Tax Counsel for the Office of Tax Policy—in February of 2005.

The Act's key measure was a one-time provision that reduced the corporate tax rate on overseas earnings from 35 percent to 5.25 percent. When it was being debated, the Ways and Means Committee released a list of firms that supported the Act. The list included General Electric, Hewlett Packard, Proctor & Gamble, and Johnson & Johnson, all which are estimated to have netted multi-billion dollar savings as a result of the Act's passage.

Many other firms show up on both the Ways and Means Committee list of American Jobs Creation Act advocates and Angus & Nickerson's client list. Among them are Coca-Cola (the firm's third client, which retained the lobby shop for “general representation on tax issues before congress and the administration, including issues under the American Jobs Creation Act of 2004”), Alpharam (4th), Time Warner (9th), Citigroup (10th), Caterpillar, Northrop Grumman, Pepsico, and Wal-Mart. More on the story.

The major components of the American Jobs Creation Act in 2004:

Ends Sanctions on American Products – Repeals export tax subsidy known as FSC-ETI – thereby ending escalating tariffs on American manufacturers and farmers.

Reduces Corporate Tax Rates, Benefits Small Businesses – Effectively reduces the tax rate from 35 percent to 32 for domestic manufacturers, large and small. It also provides tax incentives for small businesses and farmers.

Simplifies International Tax Law and Enhances U.S. Competitiveness – Reduces double taxation of U.S. businesses engaged in the worldwide market and simplifies complex international tax law.

Creates American Jobs – Reducing taxes for manufacturing done in the United States, ending sanctions and encouraging business investment will generate American job growth. U.S. businesses will have more resources available to create new jobs and keep existing workers.