Text: H.R.5031 — 101st Congress (1989-1990)All Information (Except Text)

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HR 5031 IH
101st CONGRESS
2d Session
 H. R. 5031
To amend the Internal Revenue Code of 1986 and the Federal Election Campaign
Act of 1971 to make Federal elections more competitive, open, and honest by
strengthening political parties, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 13, 1990
Mr. MICHEL (for himself, Mr. GINGRICH, Mr. EDWARDS of Oklahoma, Mr. HUNTER,
Mr. VANDER JAGT, Mr. MCCOLLUM, Mrs. VUCANOVICH, Mr. CRAIG, Mr. GALLO,
Mr. GUNDERSON, Mr. HYDE, Mr. GREEN, Mr. IRELAND, Mr. FISH, Mr. PURSELL,
Mr. MILLER of Washington, Mr. SCHULZE, Mr. MOORHEAD, Mr. KOLBE, Ms. SNOWE,
Mr. GILLMOR, Mr. DANNEMEYER, Mr. BUECHNER, Mr. WALSH, Mr. CLINGER, Mr. MADIGAN,
Mr. OXLEY, Mr. RHODES, Mr. REGULA, Mr. NIELSON of Utah, Mr. SHAW, Mr. WOLF,
Mr. BEREUTER, Mr. COUGHLIN, Mr. MILLER of Ohio, Mr. BATEMAN, Mr. ROWLAND
of Connecticut, Mr. JAMES, Mr. MARTIN of New York, Mr. KYL, Mr. ROTH,
Mr. HOLLOWAY, Mr. SENSENBRENNER, Mr. HANSEN, Mr. ROBERTS, Mr. BALLENGER,
Mr. MCMILLAN of North Carolina, Mr. HANCOCK, Mr. RAVENEL, Mr. SCHAEFER,
Mr. SAXTON, Mr. INHOFE, Mrs. SMITH of Nebraska, Mr. HASTERT, Mr. BROWN of
Colorado, Mr. UPTON, Mr. PACKARD, Mr. DORNAN of California, Mr. DONALD
E. LUKENS, Mr. HOUGHTON, Mrs. JOHNSON of Connecticut, and Mr. THOMAS of
California) introduced the following bill; which was referred jointly to
the Committees on Ways and Means and House Administration
A BILL
To amend the Internal Revenue Code of 1986 and the Federal Election Campaign
Act of 1971 to make Federal elections more competitive, open, and honest by
strengthening political parties, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. INCOME TAX CREDIT FOR QUALIFIED POLITICAL CONTRIBUTIONS.
  (a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 of the
  Internal Revenue Code of 1986 (relating to nonrefundable personal credits)
  is amended by inserting after section 23 the following new section:
`SEC. 24. QUALIFIED POLITICAL CONTRIBUTIONS.
  `(a) GENERAL RULE- In the case of an individual, there shall be allowed,
  subject to the limitations of subsection (b), as a credit against the
  tax imposed by this chapter for the taxable year, an amount equal to the
  amount of qualified political contributions, payment of which is made by
  the taxpayer within the taxable year.
  `(b) LIMITATIONS-
  `(1) MAXIMUM CREDIT- The credit allowed by subsection (a) for a taxable
  year shall not exceed $250 ($500 in the case of a joint return under
  section 6013).
  `(2) VERIFICATION- The credit allowed by subsection (a) shall be allowed,
  with respect to any qualified political contribution, only if such
  contribution is verified in such manner as the Secretary shall prescribe
  by regulations.
  `(c) DEFINITIONS- For purposes of this section:
  `(1) QUALIFIED POLITICAL CONTRIBUTION- The term `qualified political
  contribution' means a contribution--
  `(A) by a taxpayer who is a resident of the State involved, to a candidate
  for the office of Senator or Representative in, or Delegate to, the Congress;
  `(B) to the national committee of a national political party, the House
  of Representatives campaign committee of a national political party,
  or the Senate campaign committee of a national political party;
  `(C) by a taxpayer who is a resident of the State involved, to the State
  committee of a national political party as designated by the national
  committee of such party; or
  `(D) by a taxpayer who is a resident of the State involved, to a local
  committee of a national political party as designated by the State committee
  of such party designated under subparagraph (C).
  `(2) CANDIDATE- The term `candidate' has the meaning given that term in
  section 301 of the Federal Election Campaign Act of 1971.
  `(3) NATIONAL POLITICAL PARTY- The term `national political party' means--
  `(A) in the case of contributions made during a taxable year of the
  taxpayer in which the electors of President and Vice President are chosen,
  a political party presenting candidates or electors for such offices on
  the official election ballot of 10 or more States, or
  `(B) in the case of contributions made during any other taxable year of
  the taxpayer, a political party which met the qualifications described
  in subparagraph (A) in the last preceding election of a President and
  Vice President.
  `(4) STATE AND LOCAL- The term `State' means the various States and the
  District of Columbia; and the term `local' means a political subdivision
  or part thereof, or 2 or more political subdivisions or parts thereof,
  of a State.
  `(d) CROSS REFERENCES-
 `(1) For disallowance of credits to estates and trusts, see section 642(a)(2).
 `(2) For treatment of Indian tribal governments as States (and the political
 subdivisions of Indian tribal governments as political subdivisions of
 States), see section 7871.'
  (b) TECHNICAL AMENDMENTS-
  (1) Subsection (a) of section 642 of such Code is amended to read as follows:
  `(a) CREDITS AGAINST TAX-
  `(1) FOREIGN TAX CREDIT ALLOWED- An estate or trust shall be allowed the
  credit against tax for taxes imposed by foreign countries and possessions of
  the United States, to the extent allowed by section 901, only in respect of
  so much of the taxes described in such section as is not properly allocable
  under such section to the beneficiaries.
  `(2) QUALIFIED POLITICAL CONTRIBUTION CREDIT NOT ALLOWED- An estate or
  trust shall not be allowed the credit against tax for qualified political
  contributions provided by section 24.'
  (2) Paragraph (6) of section 7871(a) of such Code is amended by redesignating
  subparagraphs (A) through (D) as subparagraphs (B) through (E), respectively,
  and by inserting before subparagraph (B) (as so redesignated) the following
  new subparagraph:
  `(A) section 24(c)(4) (defining State for purposes of credit for qualified
  political contributions),'.
  (3) The table of sections for subpart A of part IV of subchapter A of
  chapter 1 of such Code is amended by inserting after the item relating to
  section 23 the following new item:
`Sec. 24. Qualified political contributions.'.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years beginning after December 31, 1989.
SEC. 2. ANNUAL LIMITATION ON TOTAL INDIVIDUAL CONTRIBUTIONS NOT TO BE
APPLICABLE TO CERTAIN CONTRIBUTIONS TO POLITICAL PARTIES.
  Section 315(a)(3) of the Federal Election Campaign Act of 1971 (2
  U.S.C. 441a(a)(3)) is amended by inserting after the first sentence the
  following new sentence: `In the computation of contributions for purposes
  of the limitation in the preceding sentence, contributions by an individual
  to national, State, and local committees of political parties that, in
  the aggregate, do not exceed $25,000 in a calendar year shall not be taken
  into account.'.
SEC. 3. REMOVAL OF CERTAIN LIMITATIONS ON POLITICAL PARTY CONTRIBUTIONS IN
GENERAL ELECTIONS FOR FEDERAL OFFICE.
  Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 441a)
  is amended by adding at the end the following new subsection:
  `(i) Notwithstanding subsection (a) and subsection (d)(3), no limitation
  shall apply to contributions in a general election by a political committee
  of a political party referred to in subsection (d)(3) or by a House of
  Representatives or Senate campaign committee of a political party.'.
SEC. 4. ADDITIONAL PARTY COMMITTEE COORDINATED EXPENDITURES TO OFFSET
INDEPENDENT EXPENDITURES IN CONGRESSIONAL ELECTIONS.
  Section 315(d) of the Federal Election Campaign Act of 1971 (2
  U.S.C. 441a(d)) is amended by adding at the end the following new paragraph:
  `(4) In addition to the expenditures under paragraph (3), the committees
  referred to in that paragraph may make expenditures in connection with
  the general election campaign of a candidate of that party for the office
  of Senator or Representative in, or Delegate or Resident Commissioner
  to, the Congress in a total amount of not more than the total amount of
  independent expenditures expressly advocating the defeat of such candidate
  and independent expenditures expressly advocating the election of any
  other candidate.'.
SEC. 5. LIMITATIONS AND REPORTING REQUIREMENTS FOR SOFT MONEY.
  (a) IN GENERAL- Title III of the Federal Election Campaign Act of 1971
  (2 U.S.C. 431 et seq.) is amended by adding at the end the following
  new section:
`LIMITATIONS AND REPORTING REQUIREMENTS FOR THE FEDERAL ELECTION PORTION OF
AMOUNTS PAID FOR MIXED ACTIVITIES
  `SEC. 324. (a) Any payment by the national committee of a political party
  or a State committee of a political party for the Federal election portion
  of a mixed political activity--
  `(1) shall be subject to limitation and reporting under this Act as if
  such payment were an expenditure; and
  `(2) may be paid only from an account that is subject to the requirements
  of this Act.
Subject to subsection (b), the amount of a payment for the Federal election
portion of a mixed political activity shall be calculated by determining the
percentage of the mixed political activity that is reasonably attributable
to the purpose of influencing an election for Federal office.
  `(b)(1) In the case of the national committee of a political party, the
  amount of a payment for the Federal election portion of a mixed political
  activity--
  `(A) in a Presidential election year, shall be not less than 67 percent
  of the total payment for the mixed political activity; and
  `(B) in any other even-numbered year, shall be not less than 33 percent
  of the total payment for the mixed political activity.
  `(2) In the case of a State committee of a political party the amount of
  a payment for the Federal election portion of a mixed political activity--
  `(A) in a Presidential election year, shall be not less than 33 percent
  of the total payment for the mixed political activity; and
  `(B) in any other even-numbered year, shall be not less than 20 percent
  of the total payment for the mixed political activity.
  `(c) As used in this section, the term `mixed political activity' means,
  with respect to a payment by the national committee of a political party
  or a State committee of a political party, an activity, such as a voter
  registration program, a get-out-the-vote drive, or general political
  advertising, that is both (1) for the purpose of influencing an election
  for Federal office, and (2) for any purpose unrelated to influencing an
  election for Federal office.'.
  (b) BUILDING FUND EXCEPTION REPEAL- Section 301(8)(B) of the Federal
  Election Campaign Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
  (1) by striking out clause (viii); and
  (2) by redesignating clauses (ix) through (xiv) as clauses (viii) through
  (xiii), respectively.
SEC. 6. INDEPENDENT LOCAL COMMITTEES OF POLITICAL PARTIES WITH AUTHORITY TO
MAKE UNLIMITED CONTRIBUTIONS AND EXPENDITURES WITH RESPECT TO CONGRESSIONAL
ELECTIONS.
  (a) DEFINITION- Section 301 of the Federal Election Campaign Act of 1971
  (2 U.S.C. 431) is amended by adding at the end the following new paragraph:
  `(20) The term `local committee' means the organization which, by virtue
  of the rules of a political party, is responsible (independently of the
  State committee) for the day-to-day operation of such political party at
  the city, county, or other political subdivision level, or at the district,
  neighborhood, ward, or similar area level, as determined by the Commission.'.
  (b) CONTRIBUTION PROVISION- Section 315(a) of the Federal Election Campaign
  Act of 1971 (2 U.S.C. 441a(a)) is amended by adding at the end the following
  new paragraph:
  `(9) Notwithstanding paragraph (1)(A) and paragraph (2)(A), a local
  committee of a political party may make contributions without limitation
  to any candidate who--
  `(A) is affiliated with that party; and
  `(B) is a candidate for the office of Senator or Representative in, or
  Delegate or Resident Commissioner to, the Congress in the State involved.'.
  (c) COORDINATED EXPENDITURE PROVISION- Section 315(d) of the Federal
  Election Campaign Act of 1971 (2 U.S.C. 441a(d)), as amended by section 4,
  is further amended by adding at the end the following new paragraph:
  `(5) A local committee of a political party may make expenditures without
  limitation in connection with the general election campaign of any
  candidate who--
  `(A) is affiliated with that party; and
  `(B) is a candidate for the office of Senator or Representative in, or
  Delegate or Resident Commissioner to, the Congress in the State involved.'.