Electronic Arts, Inc. and Subsidiaries - Page 73




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          amendment’s new section 936(h), and also modified other parts of            
          the Senate amendment.  We cannot tell from the public record how            
          much of the substantial “cost to the Treasury” (i.e., reduction             
          in the estimated amount of the revenue increase) is attributable            
          to the election-out change and how much is attributable to the              
          other changes.  Nevertheless, it is clear that the Congress was             
          willing to forgo substantial revenue (estimated at almost a                 
          billion dollars for fiscal 1987 alone) as a result of the                   
          determination to modify the provisions of the Senate Amendment.             
          Under these circumstances, we have no way of knowing (or even               
          making an educated guess) as to whether the “cost to the                    
          Treasury” phrase in the Joint Statement of Managers was intended            
          to refer to the election-out provision or any specific other                
          provision in the revisions relating to the possessions credit.              
               Respondent’s other legislative history focus--the statement            
          that the significant-business-presence test “is intended to                 
          require real and significant business activity in the                       
          possessions”--is in that part of the conference committee’s                 
          explanatory statement that deals with “significant business                 
          presence” for purposes of the cost sharing election--what we have           
          referred to as the first prong.  As we have pointed out, supra,             
          respondent has already stipulated away the only challenge that              
          respondent makes on brief as to whether EAPR has satisfied the              
          first prong.  Thus, to the extent that the conference committee’s           






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