CONCURRENT RESOLUTIONS—MAY 12, 1994 108 STAT. 5101 (2) the Federal Government's share of entitlement programs should not be capped or otherwise decreased without providing States authority to amend their financial or programmatic responsibilities to continue meeting the mandated service; and (3) Congress should develop a mechanism to ensure that costs of mandates are considered during agencies' development of regulations and congressional deliberations on legislation. SEC. 38. CLOSING OF LOOPHOLES IN FOREIGN TAX PROVISIONS. (a) FINDINGS. —The Senate finds that— (1) there is evidence suggesting that foreign-controlled corporations doing business in the United States do not pay their fair share of taxes; (2) over 70 percent of foreign-controlled corporations doing business in the United States pay no Federal income tax; (3) the United States Department of the Treasury has limited its ability to protect the revenue base in the case of cross-border transactions, to the detriment of taxpayers engaged solely in domestic transactions; (4) the Department of the Treasury has been using antiquated accounting concepts to deal with sophisticated multinational corporations; (5) substantial Federeil revenues are lost annually due to the inability of the Internal Revenue Service to enforce the "arm's length" transaction rule, along with substantial amounts spent on administration and litigation; and (6) the Federal income tax laws provide a financial incentive for domestic taxpayers to operate abroad by grsinting them deferral of United States taxes on income earned abroad. (b) SENSE OF THE SENATE.— It is the sense of the Senate that deficit reduction should be achieved, in part, by ending loopholes and enforcement breakdowns that now foster the underpa5anent of taxes on income from cross-border transactions and that subsidize the flight of domestic businesses and jobs out of the United States, by means including— (1) the adoption of a more streamlined and efficient method of enforcing Federal tax laws involving multinational corporations, especially those based abroad, and in particular, the use by the Treasury Department of a formulaic approach in cases in which the current "arm's length" transaction rules do not work; and (2) a repeal of tax subsidies for domestic businesses that operate abroad in tax havens and then ship their products back into the United States. SEC. 39. SENSE OF THE SENATE REGARDING TAX EXPENDITURES. (a) FINDINGS. —The Senate finds that tax expenditures—. (1) are growing significantly; (2) may have the same effect as direct Federal spending; and (3) should be subject to the same level of budgetary review as direct spending. (b) SENSE OF THE SENATE.— I t is the sense of the Senate that— (1) the Congress should consider targets for the growth in tax expenditures similar to the targets for the growth of mandatory spending;
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