Sec. 401. Reform of tax rules related to political organizations
194 words·~1 min read·
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Subsection
(b)of section 527 of the Internal Revenue Code of 1986 is amended— by striking all that precedes A tax is hereby imposed and inserting the following: , by striking paragraph (2), and by striking the highest rate of tax specified in section 11(b) and inserting 35 percent . Paragraph
(3)of section 527(c) of such Code is amended— by adding or at the end of subparagraph (A), by striking the comma at the end of subparagraph
(B)and inserting a period, and by striking subparagraphs
(C)and (D). Paragraph
(1)of section 527(f) of such Code is amended by striking equal to the lesser of— and all that follows and inserting equal to the aggregate amount so expended during the taxable year for such an exempt function. If such aggregate amount does not exceed $500,000, the amount included in gross income under the preceding sentence shall not exceed the net investment income of such organization for the taxable year. . Section 527 of such Code is amended by striking subsection (h). The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.