Sec. 211. Progressive tax on lobbying expenditures
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Chapter 33 of the Internal Revenue Code of 1986 is amended by inserting after subchapter C the following new subchapter: Sec. 4286. Imposition of tax. There is hereby imposed on quarterly lobbying expenditures in excess of $125,000 a tax determined in accordance with the following table: If quarterly lobbying expenditures are: The tax is: Over $125,000 but not over $250,000 35% of the quarterly lobbying expenditures in excess of $125,000. Over $250,000 but not over $1,250,000 $43,750, plus 60% of the excess over $250,000.
Over $1,250,000 $643,750, plus 75% of the excess over $1,250,000. Except as provided in paragraph (2), the tax imposed by this section shall not apply to any organization described in section 501(c) and exempt from tax under section 501(a). Paragraph
(1)shall not apply to any organization which— is described in section 501(c)(6) and exempt from tax under section 501(a), and has as a member of such organization an organization that is not described in section 501(c) and exempt from tax under section 501(a). The tax imposed by this section shall be paid by the person paying for the quarterly lobbying expenditures. For purposes of this section, the term quarterly lobbying expenditures means, with respect to any calendar quarter, the expenditures paid or incurred for lobbying activities (as defined under section 3 of the Lobbying Disclosure Act of 1995) during such calendar quarter. For purposes of this section, all persons treated as a single employer under subsection
(a)or
(b)of section 52 shall be treated as a single person. . The table of subchapters for chapter 33 of such Code is amended by inserting after the item related to subchapter C the following new item: Subchapter D—Lobbying Activities . The amendments made by this paragraph shall apply to amounts paid or incurred in calendar quarters beginning more than 60 days after the date of the enactment of this Act. Section 4911(e)(2) of the Internal Revenue Code of 1986 is amended— by striking includes action with respect to Acts, bills and inserting includes— the formulation, modification, or adoption of Acts, bills ; and by adding at the end the following new subparagraphs: the formulation, modification, or adoption of a Federal rule, regulation, Executive order, or any other program, policy, or position of the United States Government, the administration or execution of a Federal program or policy (including the negotiation, award, or administration of a Federal contract, grant, loan, permit, or license), and the nomination or confirmation of a person for a position subject to confirmation by the Senate. . Section 4911(e) of such Code is amended by striking paragraph
(3)and redesignating paragraph
(4)as paragraph (3). The amendments made by this paragraph shall take effect 180 days after the date of the enactment of this Act. Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: There is established in the Treasury of the United States a trust fund to be known as the Lobbying Defense Trust Fund , consisting of any amount appropriated or credited to the Trust Fund as provided in this section or section 9602(b). There is hereby appropriated to the Lobbying Defense Trust Fund amounts equivalent to— the taxes received in the Treasury under section 4286, and the civil penalties collected under the Anti-Corruption and Public Integrity Act and the amendments made by that Act. Amounts transferred to the Lobbying Defense Trust Fund shall— remain available until expended; and be used, without further appropriation, by the Director of the Office of Public Integrity in accordance with subsection (d). For each calendar quarter beginning more than 60 days after the date of the enactment of this section, not later than 30 days after the end of the quarter, the Director of the Office of Public Integrity (in this subsection referred to as the Director ) shall identify specific rules or other agency actions that were the subject of significant lobbying activity directed toward an executive agency during the quarter. Not later than the end of each calendar quarter beginning more than 60 days after the date of the enactment of this section, the Director shall transfer from the Lobbying Defense Trust Fund to each executive agency that was the subject of significant lobbying activity during the previous quarter an amount equal to the amount obtained by multiplying— the amount of taxes received in the Treasury under section 4286 that are attributable to lobbying expenditures during the previous quarter; by the percentage of such taxes that were based on lobbying expenditures during the previous quarter related to rulemaking within the jurisdiction of the executive agency. An executive agency may use amounts transferred under subparagraph
(B)for salaries and expenses relating to researching, reviewing, or finalizing rules or other agency actions in accordance with section 553 or 554 of title 5, United States Code. Amounts transferred under subparagraph
(B)shall remain available until expended. For each fiscal year beginning more than 60 days after the date of enactment of this section, the National Public Advocate shall submit to the Director a request— indicating the amount the National Public Advocate is requesting be transferred to the Office of the Public Advocate; and describing the activities of the Office of the Public Advocate that would be carried out using the amounts. After consideration of the request submitted under subparagraph
(A)with respect to a fiscal year, the Director shall transfer to the Office of the Public Advocate from the Lobbying Defense Trust Fund the amount determined appropriate by the Director. Amounts transferred under subparagraph
(B)may be used for any authorized activity of the Office of the Public Advocate, including salaries and expenses. Amounts transferred under subparagraph
(B)shall remain available until expended. Not later than the end of each calendar quarter beginning more than 60 days after the date of the enactment of this section, the Director shall transfer from the Lobbying Defense Trust Fund to the Congressional Research Service, the Congressional Budget Office, the Government Accountability Office, and the Office of Technology Assessment an amount equal to 25 percent of the difference between— the amount of taxes received in the Treasury under section 4286 that are attributable to lobbying expenditures during the previous quarter; and the amount of such taxes that were based on lobbying expenditures during the previous quarter related to rulemaking within the jurisdiction of an executive agency. Amounts transferred under subparagraph
(A)may be used for any authorized activity of the agency receiving the amounts, including salaries and expenses. Amounts transferred under subparagraph
(A)shall remain available until expended. Not later than 180 days after the date of enactment of this Act, the Director shall promulgate regulations defining the term significant lobbying activity for purposes of this subsection. . The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: Sec. 9512. Lobbying Defense Trust Fund. . The amendments made by this subsection shall take effect on the date of enactment of this Act.