Hardworking taxpayers in Iowa may rest a little easier. Congress passed in October the most sweeping crackdown on corporate tax schemes in a generation. The hard-fought effort to close tax loopholes ought to generate tens of billions of dollars more in federal revenue during the next decade.

The business tax bill also addresses the so-called Euro tax that was slapped on American goods exported to the European Union. Until the U.S. repealed a $5 billion-a-year export subsidy declared illegal by the World Trade Organization, sanctions would continue to grow on U.S. manufactured products headed for the EU.

As chairman of the Senate Finance Committee, I worked to make the $143 billion tax bill revenue neutral. That means any new tax breaks are off-set by closing tax loopholes used by corporations and individuals to avoid paying their fair share to Uncle Sam. It does not add one dime to the federal deficit.

Working to address unemployment, my bipartisan bill gives legitimate breaks to businesses creating jobs right here at home in America. In an effort to help fuel the engines of economic growth, small businesses will be allowed to expense up to $100,000 of new investments through 2007.

In a major victory for Iowa farmers, my bill also extends the federal ethanol program through 2010 and fully reimburses the Highway Trust Fund for the cost of the ethanol tax incentive. My bill also creates a new tax break for the production of biodiesel and protects farmers who use income averaging from being penalized by the Alternative Minimum Tax.

Beyond laying down a solid foundation for job creation and economic development, my bill pulls the rug out from underneath those who shirk their patriotic responsibility to pay federal taxes.

Companies who seek to avoid paying taxes through complicated 'inversion' schemes can kiss their post office box in Bermuda good-bye. My bill cracks down on abusive tax shelters set up in off-shore tax havens or through complicated leasing abuses.

Companies no longer will be able to rent taxpayer-financed public works, like subways and sewers, and lease it back to cities while claiming a hefty depreciation on their taxes. Closing this tax scheme ought to raise more than $26 billion over the next decade.

All told my bill closes 21 tax shelters and significantly increases penalties to deter would-be tax cheats and those who peddle abusive tax evasion schemes. My bill cracks down on fuel tax evasion, tightens tax treatment for deferred compensation packages awarded to corporate executives, limits sky-high corporate deductions for personal use of company aircraft, and returns the maximum expensing for an SUV to $25,000 from a Hummer-sized loophole of $100,000.

My bill also seeks to strengthen the nation’s philanthropic networks and root out those who take advantage of the system at taxpayers’ expense. Individuals who donate their used car to charitable organizations will no longer be allowed to make an inflated deduction from their federal taxes. Each year taxpayers reduce their income tax liability by $654 million through the vehicle donation deduction. However, a federal audit found charities receive just five percent or less of the donated car’s value. That’s pennies on the dollar.

The president is expected to sign The American Jobs Creation Act into law. With his signature, the president sends an important message to all American taxpayers: Honesty is the best policy. In the meantime, I’ll continue to root out scams being cooked up in the underworld of tax shelters. Tax cheats are in for a rude awakening if they think the senior senator from Iowa lets sleeping dogs lie.