[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9629 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 9629
To amend the Internal Revenue Code of 1986 to impose a tax on employers
whose employees receive certain Federal benefits.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 20, 2022
Mr. Khanna introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and Labor, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a tax on employers
whose employees receive certain Federal benefits.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Corporate Responsibility and
Taxpayer Protection Act of 2022''.
SEC. 2. TAX ON EMPLOYERS WITH EMPLOYEES RECEIVING CERTAIN FEDERAL
BENEFITS.
(a) In General.--The Internal Revenue Code of 1986 is amended by
inserting after chapter 36 the following new chapter:
``CHAPTER 37--EMPLOYERS WITH EMPLOYEES RECEIVING CERTAIN FEDERAL
BENEFITS
``SEC. 4501. EMPLOYERS WITH EMPLOYEES RECEIVING CERTAIN FEDERAL
BENEFITS.
``(a) Imposition of Corporate Welfare Tax.--There is hereby imposed
on each large employer a tax equal to 100 percent of the qualified
employee benefits with respect to such employer for the taxable year.
``(b) Large Employer.--
``(1) In general.--For purposes of this section, the term
`large employer' means, with respect to a calendar year, an
employer who employed an average of at least 500 full-time
employees on business days during the preceding calendar year.
``(2) Rules for determining employer size.--For purposes of
this subsection--
``(A) Application of aggregation rule for
employers.--All persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414
of the Internal Revenue Code of 1986 shall be treated
as 1 employer.
``(B) Full-time equivalents treated as full-time
employees.--Solely for purposes of determining whether
an employer is a large employer under this paragraph,
an employer shall, in addition to the number of full-
time employees for any month otherwise determined,
include for such month a number of full-time employees
determined by dividing the aggregate number of hours of
service of employees who are not full-time employees
for the month by 120.
``(C) Employers not in existence in preceding
year.--In the case of an employer which was not in
existence throughout the preceding calendar year, the
determination of whether such employer is a large
employer shall be based on the average number of
employees that it is reasonably expected such employer
will employ on business days in the current calendar
year.
``(D) Predecessors.--Any reference in this
subsection to an employer shall include a reference to
any predecessor of such employer.
``(3) Certain employers exempt.--For purposes of paragraph
(1), an employer shall not be considered a large employer if--
``(A) such employer pays all employees a wage of
$15 per hour (or the salaried equivalent) or more, or
``(B) such employer holds less than $100 million in
assets.
``(c) Qualified Employee Benefits.--For purposes of this section:
``(1) In general.--The term `qualified employee benefits'
means, with respect to a person for a taxable year, the sum the
qualified Federal benefits for which individuals who are
employees of such person for such taxable year.
``(2) Qualified federal benefits.--The term `qualified
Federal benefits' means, with respect to an individual, the
following:
``(A) The dollar value of supplemental nutrition
assistance for which the household (as defined in
section 3(m) of the Food and Nutrition Act of 2008)
that includes such individual is eligible.
``(B) The dollar value of meals that such
individual or dependents of such individual are
eligible for under the school lunch program under the
Richard B. Russell National School Lunch Act and the
school breakfast program under section 4 of the Child
Nutrition Act of 1966.
``(C) The aggregate amount of the monthly
assistance payments for rental of a dwelling unit that
the household of such individual was a member of is
eligible to have made of its behalf pursuant to section
8 of the United States Housing Act of 1937.
``(D) The amount of payments made under section
1903 of the Social Security Act with respect to
expenditures made by a State under a State Medicaid
plan under title XIX of such Act (or a waiver of such
plan) for medical assistance for such individual or for
dependents of such individual.
``(d) Employee.--For purposes of this section, the term `employee'
means--
``(1) any full-time or part-time employee,
``(2) any individual who is a full-time or part-time
independent contractor (including any employee of such
independent contractor) and provides services to the employer,
unless--
``(A) the individual is free from control and
direction in connection with the performance of the
service, both under the contract for the performance of
service and in fact,
``(B) the service is performed outside the usual
course of the business of the employer, and
``(C) the individual is customarily engaged in an
independently established trade, occupation, professor
or business of the same nature as that involved in the
service performed, and
``(3) any individual who is a full-time or part-time joint
employee, provided that the employer possess, reserves, or
exercises sufficient direct or indirect control over the
essential terms and conditions of employment of such employee.
``(e) Regulations.--The Secretary, in consultation with the
Secretary of Agriculture, the Secretary of Housing and Urban
Development, and the Administrator of the Centers for Medicare and
Medicaid Services, shall prescribe such regulations as may be necessary
or appropriate to carry out this chapter.''.
(b) Clerical Amendments.--The table of chapters for subtitle D of
such Code is amended by inserting after the item relating to chapter 36
the following new item:
``Chapter 37--Employers With Employees Receiving Certain Federal
Benefits''.
(c) Effective Date.--The amendments made by this Act apply with
respect to taxable years beginning after December 31, 2022.
SEC. 3. UNLAWFUL EMPLOYMENT PRACTICES RELATED TO FEDERAL BENEFITS OF
APPLICANTS.
(a) In General.--It shall be an unlawful employment practice for
any large employer (as defined in section 4501(b) of the Internal
Revenue Code of 1986) to make inquiries of an applicant for employment,
or otherwise seek information about such an applicant (including
through the use of any form or application), relating to whether such
applicant receives Federal benefits.
(b) Enforcement.--A violation of subsection (a) shall be treated
as, and enforced by the Secretary of Labor in the same manner as, a
violation of section 6 of the Fair Labor Standards Act of 1938 (29
U.S.C. 206), except that for purposes of section 15(b) of such Act (29
U.S.C. 215(b)), the employer shall be liable to the individual alleging
the violation for any lost wages due the individual and an additional
equal amount of liquidated damages.
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