Sec. 401. Fair Elections Fund revenue
242 words·~1 min read·
/bill/116/s/2257/is/section-401A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter: Sec. 4501. Imposition of tax. There is hereby imposed on any payment made to a qualified person pursuant to a contract with the Government of the United States a tax equal to 0.50 percent of the amount paid. The aggregate amount of tax imposed per contract under subsection
(a)for any calendar year shall not exceed $500,000. For purposes of this section, the term qualified person means any person which— is not a State or local government, a foreign nation, or an organization described in section 501(c)(3) which is exempt from taxation under section 501(a), and has a contract with the Government of the United States with a value in excess of $10,000,000. The tax imposed by this section shall be paid by the person receiving such payment. It is the sense of the Senate that amounts equivalent to the revenue generated by the tax imposed under this chapter should be appropriated for the financing of a Fair Elections Fund and used for the public financing of Senate elections. . The table of chapters of the Internal Revenue Code of 1986 is amended by inserting after the item relating to chapter 36 the following: Chapter 37—Tax on Payments Pursuant to Certain Government Contracts . The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act.