January 24, 2019 - Issue: Vol. 165, No. 15 — Daily Edition116th Congress (2019 - 2020) - 1st Session

[Pages S588-S590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KAINE (for himself, Ms. Collins, Mr. Wyden, Mrs. Murray, 
        Mr. Jones, Mr. Bennet, Ms. Cortez Masto, Ms. Stabenow, Mr. Van 
        Hollen, Mr. Blumenthal, Mr. Carper, Ms. Warren, Ms. Duckworth, 
        Mr. Coons, Mr. Sanders, Mr. Warner, Ms. Hassan, Mr. Menendez, 
        Mr. Brown, Mrs. Shaheen, Ms. Hirono, Mr. Booker, Mr. Durbin, 
        Ms. Smith, Mr. Heinrich, Mr. Schatz, Ms. Klobuchar, Mr. 
        Portman, Mr. Udall, Mr. Manchin, and Mrs. Feinstein):
  S. 204. A bill to amend the Internal Revenue Code of 1986 to waive 
certain penalties for affected Federal employees receiving a 
distribution from the Thrift Savings Plan during a lapse in 
appropriations, and for other purposes; to the Committee on Finance.
  Mr. KAINE. Mr. President, today is day 34 of the longest shutdown of 
government in United States history. We must end this shutdown. We must 
reopen government right away. Today, I want to talk about legislation 
that would provide some assistance to the Federal workers who are 
suffering from this unnecessary shutdown, the Emergency Relief for 
Federal Workers Act of 2019.
  Tomorrow, 800,000 Federal workers who work hard and just want to 
serve their Nation will not receive a paycheck. They have not received 
a paycheck since December 28th, 2018. However, more than 400,000 hold 
positions so essential to our Nation that they must go to work 
regardless of their pay status.
  Thus shutdown hurts these workers. I have talked about the personal 
stories of Virginians who serve our Nation in the Coast Guard, the 
Environmental Protection Agency, and the Forest Service. This shutdown 
means families that have jobs cannot pay their mortgages or rent. They 
cannot buy food to feed their families. They cannot afford to refill 
prescriptions critical to the health of their children. This shutdown 
threatens Federal workers with financial ruin. Again, we must reopen 
the government immediately.
  We have passed legislation to provide retroactive pay to these 
workers when the shutdown ends, but we do not know when that will 
happen. So today, I am pleased to be joined by my colleagues to 
introduce the Emergency Relief for Federal Workers Act. This 
legislation would allow federal employees who are in desperate 
financial straits directly because of this shutdown to borrow from what 
is, for many, their largest financial asset, their retirement account.
  This legislation would allow Federal workers in the Thrift Savings 
Plan to access their savings without immediate penalty to meet the 
financial hardships caused by the government shutdown. It would allow 
them to pay for basic necessities during the shutdown and allow them to 
replenish their savings after the shutdown ends.
  I do not know how much longer 800,000 families will have to wait to 
be made whole after this manufactured crisis. And I do not advocate 
irresponsibly borrowing from retirement savings. But I believe we must 
act to help the people who make our federal government function in this 
time of need they are in through no fault of their own.
  I urge my colleagues to support this legislation. Thank you, Mr. 
President.
                                 ______
                                 
      By Mr. THUNE (for himself, Mr. Alexander, Mr. Barrasso, Mrs. 
        Blackburn, Mr. Blunt, Mr. Boozman, Mr. Cornyn, Mr. Cramer, Mr. 
        Crapo, Mr. Cruz, Mr. Daines, Ms. Ernst, Mrs. Fischer, Mr. 
        Gardner, Mr. Grassley, Mr. Hoeven, Mrs. Hyde-Smith, Mr. Inhofe, 
        Mr. Isakson, Mr. Kennedy, Mr. McConnell, Mr. Moran, Mr. Risch, 
        Mr. Roberts, Mr. Rounds, Mr. Young, Mr. Cotton, Mr. Rubio, and 
        Mr. Perdue):
  S. 215. A bill to amend the Internal Revenue Code of 1986 to repeal 
the estate and generation-skipping transfer taxes, and for other 
purposes; to the Committee on Finance.
  Mr. THUNE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 215

       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 ``Death Tax Repeal Act of 
     2019''.

     SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER 
                   TAXES.

       (a) Estate Tax Repeal.--Subchapter C of chapter 11 of 
     subtitle B of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 2210. TERMINATION.

       ``(a) In General.--Except as provided in subsection (b), 
     this chapter shall not apply to the estates of decedents 
     dying on or after the date of the enactment of the Death Tax 
     Repeal Act of 2019.
       ``(b) Certain Distributions From Qualified Domestic 
     Trusts.--In applying section 2056A with respect to the 
     surviving spouse of a decedent dying before the date of the 
     enactment of the Death Tax Repeal Act of 2019--
       ``(1) section 2056A(b)(1)(A) shall not apply to 
     distributions made after the 10-year period beginning on such 
     date, and
       ``(2) section 2056A(b)(1)(B) shall not apply on or after 
     such date.''.
       (b) Generation-Skipping Transfer Tax Repeal.--Subchapter G 
     of chapter 13 of subtitle B of such Code is amended by adding 
     at the end the following new section:

     ``SEC. 2664. TERMINATION.

       ``This chapter shall not apply to generation-skipping 
     transfers on or after the date of the enactment of the Death 
     Tax Repeal Act of 2019.''.
       (c) Conforming Amendments.--
       (1) The table of sections for subchapter C of chapter 11 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new item:

``Sec. 2210. Termination.''.
       (2) The table of sections for subchapter G of chapter 13 of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 2664. Termination.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and 
     generation-skipping transfers, after the date of the 
     enactment of this Act.

     SEC. 3. MODIFICATIONS OF GIFT TAX.

       (a) Computation of Gift Tax.--Subsection (a) of section 
     2502 of the Internal Revenue Code of 1986 is amended to read 
     as follows:
       ``(a) Computation of Tax.--
       ``(1) In general.--The tax imposed by section 2501 for each 
     calendar year shall be an amount equal to the excess of--
       ``(A) a tentative tax, computed under paragraph (2), on the 
     aggregate sum of the taxable gifts for such calendar year and 
     for each of the preceding calendar periods, over
       ``(B) a tentative tax, computed under paragraph (2), on the 
     aggregate sum of the taxable gifts for each of the preceding 
     calendar periods.
       ``(2) Rate schedule.--


                                         ...............................
``If the amount with respect to which    The tentative tax is:
 the tentative tax to be computed is:.
Not over $10,000.......................  18% of such amount.
Over $10,000 but not over $20,000......  $1,800, plus 20% of the excess
                                          over $10,000.
Over $20,000 but not over $40,000......  $3,800, plus 22% of the excess
                                          over $20,000.

[[Page S589]]

 
Over $40,000 but not over $60,000......  $8,200, plus 24% of the excess
                                          over $40,000.
Over $60,000 but not over $80,000......  $13,000, plus 26% of the excess
                                          over $60,000.
Over $80,000 but not over $100,000.....  $18,200, plus 28% of the excess
                                          over $80,000.
Over $100,000 but not over $150,000....  $23,800, plus 30% of the excess
                                          over $100,000.
Over $150,000 but not over $250,000....  $38,800, plus 32% of the excess
                                          of $150,000.
Over $250,000 but not over $500,000....  $70,800, plus 34% of the excess
                                          over $250,000.
Over $500,000..........................  $155,800, plus 35% of the
                                          excess of $500,000.''.
 


       (b) Treatment of Certain Transfers in Trust.--Section 2511 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subsection:
       ``(c) Treatment of Certain Transfers in Trust.--
     Notwithstanding any other provision of this section and 
     except as provided in regulations, a transfer in trust shall 
     be treated as a taxable gift under section 2503, unless the 
     trust is treated as wholly owned by the donor or the donor's 
     spouse under subpart E of part I of subchapter J of chapter 
     1.''.
       (c) Lifetime Gift Exemption.--
       (1) In general.--Paragraph (1) of section 2505(a) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(1) the amount of the tentative tax which would be 
     determined under the rate schedule set forth in section 
     2502(a)(2) if the amount with respect to which such tentative 
     tax is to be computed were $10,000,000, reduced by''.
       (2) Inflation adjustment.--Section 2505 of such Code is 
     amended by adding at the end the following new subsection:
       ``(d) Inflation Adjustment.--
       ``(1) In general.--In the case of any calendar year after 
     2011, the dollar amount in subsection (a)(1) shall be 
     increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2010' for `calendar year 2016' in subparagraph 
     (A)(ii) thereof.
       ``(2) Rounding.--If any amount as adjusted under paragraph 
     (1) is not a multiple of $10,000, such amount shall be 
     rounded to the nearest multiple of $10,000.''.
       (d) Conforming Amendments.--
       (1) Section 2505(a) of such Code is amended by striking the 
     last sentence.
       (2) The heading for section 2505 of such Code is amended by 
     striking ``UNIFIED''.
       (3) The item in the table of sections for subchapter A of 
     chapter 12 of such Code relating to section 2505 is amended 
     to read as follows:

``Sec. 2505. Credit against gift tax.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to gifts made on or after the date of the 
     enactment of this Act.
       (f) Transition Rule.--
       (1) In general.--For purposes of applying sections 1015(d), 
     2502, and 2505 of the Internal Revenue Code of 1986, the 
     calendar year in which this Act is enacted shall be treated 
     as 2 separate calendar years one of which ends on the day 
     before the date of the enactment of this Act and the other of 
     which begins on such date of enactment.
       (2) Application of section 2504(b).--For purposes of 
     applying section 2504(b) of the Internal Revenue Code of 
     1986, the calendar year in which this Act is enacted shall be 
     treated as one preceding calendar period.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Brown):
  S. 223. A bill to amend the Internal Revenue Code of 1986 to provide 
a tax credit to Patriot employers, and for other purposes; to the 
Committee on Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 223

       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 ``Patriot Employer Tax Credit 
     Act''.

     SEC. 2. PATRIOT EMPLOYER TAX CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45T. PATRIOT EMPLOYER TAX CREDIT.

       ``(a) Determination of Amount.--
       ``(1) In general.--For purposes of section 38, the Patriot 
     employer credit determined under this section with respect to 
     any taxpayer who is a Patriot employer for any taxable year 
     shall be equal to 10 percent of the qualified wages paid or 
     incurred by the Patriot employer.
       ``(2) Limitation.--The amount of qualified wages which may 
     be taken into account under paragraph (1) with respect to any 
     employee for any taxable year shall not exceed $15,000.
       ``(b) Patriot Employer.--
       ``(1) In general.--For purposes of subsection (a), the term 
     `Patriot employer' means, with respect to any taxable year, 
     any taxpayer--
       ``(A) which--
       ``(i) maintains its headquarters in the United States if 
     the taxpayer (or any predecessor) has ever been headquartered 
     in the United States, and
       ``(ii) is not (and no predecessor of which is) an 
     expatriated entity (as defined in section 7874(a)(2)) for the 
     taxable year or any preceding taxable year ending after March 
     4, 2003,
       ``(B) with respect to which no assessable payment has been 
     imposed under section 4980H with respect to any month 
     occurring during the taxable year,
       ``(C) provides employees with--
       ``(i) paid sick leave, or
       ``(ii) paid family and medical leave, and
       ``(D) in the case of--
       ``(i) a taxpayer which employs an average of more than 50 
     employees on business days during the taxable year, which--

       ``(I) provides compensation for at least 90 percent of its 
     employees for services provided by such employees during the 
     taxable year at an hourly rate (or equivalent thereof) not 
     less than an amount equal to 218 percent of the Federal 
     poverty level for an individual for the calendar year in 
     which the taxable year begins divided by 1,750,
       ``(II) meets the retirement plan requirements of subsection 
     (c) with respect to at least 90 percent of its employees 
     providing services during the taxable year who are not highly 
     compensated employees, and
       ``(III) meets the additional requirements of subparagraphs 
     (A) and (B) of paragraph (2), or

       ``(ii) any other taxpayer, which meets the requirements of 
     either subclause (I) or (II) of clause (i) for the taxable 
     year.
       ``(2) Additional requirements for large employers.--
       ``(A) United states employment.--The requirements of this 
     subparagraph are met for any taxable year if--
       ``(i) in any case in which the taxpayer increases the 
     number of employees performing substantially all of their 
     services for the taxable year outside the United States, the 
     taxpayer either--

       ``(I) increases the number of employees performing 
     substantially all of their services inside the United States 
     by an amount not less than the increase in such number for 
     employees outside the United States, or
       ``(II) has a percentage increase in such employees inside 
     the United States which is not less than the percentage 
     increase in such employees outside the United States,

       ``(ii) in any case in which the taxpayer decreases the 
     number of employees performing substantially all of their 
     services for the taxable year inside the United States, the 
     taxpayer either--

       ``(I) decreases the number of employees performing 
     substantially all of their services outside the United States 
     by an amount not less than the decrease in such number for 
     employees inside the United States, or
       ``(II) has a percentage decrease in employees outside the 
     United States which is not less than the percentage decrease 
     in such employees inside the United States, and

       ``(iii) there is not a decrease in the number of employees 
     performing substantially all of their services for the 
     taxable year inside the United States by reason of the 
     taxpayer contracting out such services to persons who are not 
     employees of the taxpayer.
       ``(B) Treatment of individuals in the uniformed services 
     and the disabled.--The requirements of this subparagraph are 
     met for any taxable year if--
       ``(i) the taxpayer provides differential wage payments (as 
     defined in section 3401(h)(2)) to each employee described in 
     section 3401(h)(2)(A) for any period during the taxable year 
     in an amount not less than the difference between the wages 
     which would have been received from the employer during such 
     period and the amount of pay and allowances which the 
     employee receives for service in the uniformed services 
     during such period, and
       ``(ii) the taxpayer has in place at all times during the 
     taxable year a written policy for the recruitment of 
     employees who have served in the uniformed services or who 
     are disabled.

[[Page S590]]

       ``(3) Special rules for applying the minimum wage and 
     retirement plan requirements.--
       ``(A) Minimum wage.--In determining whether the minimum 
     wage requirements of paragraph (1)(D)(i)(I) are met with 
     respect to 90 percent of a taxpayer's employees for any 
     taxable year--
       ``(i) a taxpayer may elect to exclude from such 
     determination apprentices or learners that an employer may 
     exclude under the regulations under section 14(a) of the Fair 
     Labor Standards Act of 1938, and
       ``(ii) if a taxpayer meets the requirements of paragraph 
     (2)(B)(i) with respect to providing differential wage 
     payments to any employee for any period (without regard to 
     whether such requirements apply to the taxpayer), the hourly 
     rate (or equivalent thereof) for such payments shall be 
     determined on the basis of the wages which would have been 
     paid by the employer during such period if the employee had 
     not been providing service in the uniformed services.
       ``(B) Retirement plan.--In determining whether the 
     retirement plan requirements of paragraph (1)(D)(i)(II) are 
     met with respect to 90 percent of a taxpayer's employees for 
     any taxable year, a taxpayer may elect to exclude from such 
     determination--
       ``(i) employees not meeting the age or service requirements 
     under section 410(a)(1) (or such lower age or service 
     requirements as the employer provides), and
       ``(ii) employees described in section 410(b)(3).
       ``(c) Retirement Plan Requirements.--
       ``(1) In general.--The requirements of this subsection are 
     met for any taxable year with respect to an employee of the 
     taxpayer who is not a highly compensated employee if the 
     employee is eligible to participate in 1 or more applicable 
     eligible retirement plans maintained by the employer for a 
     plan year ending with or within the taxable year.
       ``(2) Applicable eligible retirement plan.--For purposes of 
     this subsection, the term `applicable eligible retirement 
     plan' means an eligible retirement plan which, with respect 
     to the plan year described in paragraph (1), is either--
       ``(A) a defined contribution plan which--
       ``(i) requires the employer to make nonelective 
     contributions of at least 5 percent of the compensation of 
     the employee, or
       ``(ii) both--

       ``(I) includes an eligible automatic contribution 
     arrangement (as defined in section 414(w)(3)) under which the 
     uniform percentage described in section 414(w)(3)(B) is at 
     least 5 percent, and
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the elective deferrals (as defined in 
     section 414(u)(2)(C)) of the employee to the extent such 
     deferrals do not exceed the percentage specified by the plan 
     (not less than 5 percent) of the employee's compensation, or

       ``(B) a defined benefit plan--
       ``(i) with respect to which the accrued benefit of the 
     employee derived from employer contributions, when expressed 
     as an annual retirement benefit, is not less than the product 
     of--

       ``(I) the lesser of 2 percent multiplied by the employee's 
     years of service (determined under the rules of paragraphs 
     (4), (5), and (6) of section 411(a)) with the employer or 20 
     percent, multiplied by
       ``(II) the employee's final average pay, or

       ``(ii) which is an applicable defined benefit plan (as 
     defined in section 411(a)(13)(C))--

       ``(I) which meets the interest credit requirements of 
     section 411(b)(5)(B)(i) with respect to the plan year, and
       ``(II) under which the employee receives a pay credit for 
     the plan year which is not less than 5 percent of 
     compensation.

       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Eligible retirement plan.--The term `eligible 
     retirement plan' has the meaning given such term by section 
     402(c)(8)(B), except that in the case of an account or 
     annuity described in clause (i) or (ii) thereof, such term 
     shall only include an account or annuity which is a 
     simplified employee pension (as defined in section 408(k)).
       ``(B) Final average pay.--For purposes of paragraph 
     (2)(B)(i)(II), final average pay shall be determined using 
     the period of consecutive years (not exceeding 5) during 
     which the employee had the greatest compensation from the 
     taxpayer.
       ``(C) Alternative plan designs.--The Secretary may 
     prescribe regulations for a taxpayer to meet the requirements 
     of this subsection through a combination of defined 
     contribution plans or defined benefit plans described in 
     paragraph (1) or through a combination of both such types of 
     plans.
       ``(D) Plans must meet requirements without taking into 
     account social security and similar contributions and 
     benefits.--A rule similar to the rule of section 416(e) shall 
     apply.
       ``(d) Qualified Wages and Compensation.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified wages' means wages 
     (as defined in section 51(c), determined without regard to 
     paragraph (4) thereof) paid or incurred by the Patriot 
     employer during the taxable year to employees--
       ``(A) who perform substantially all of their services for 
     such Patriot employer inside the United States, and
       ``(B) with respect to whom--
       ``(i) in the case of a Patriot employer which employs an 
     average of more than 50 employees on business days during the 
     taxable year, the requirements of subclauses (I) and (II) of 
     subsection (b)(1)(D)(i) are met, and
       ``(ii) in the case of any other Patriot employer, the 
     requirements of either subclause (I) or (II) of subsection 
     (b)(1)(D)(i) are met.
       ``(2) Special rules for agricultural labor and railway 
     labor.--Rules similar to the rules of section 51(h) shall 
     apply.
       ``(3) Compensation.--For purposes of subsections 
     (b)(1)(D)(i)(I) and (c), the term `compensation' has the same 
     meaning as qualified wages, except that section 51(c)(2) 
     shall be disregarded in determining the amount of such wages.
       ``(e) Aggregation Rules.--For purposes of this section--
       ``(1) In general.--All persons treated as a single employer 
     under subsection (a) or (b) of section 52 shall be treated as 
     a single taxpayer.
       ``(2) Special rules for certain requirements.--For purposes 
     of applying paragraphs (1)(A) and (2)(A) of subsection (b)--
       ``(A) the determination under subsections (a) and (b) of 
     section 52 for purposes of paragraph (1) shall be made 
     without regard to section 1563(b)(2)(C) (relating to 
     exclusion of foreign corporations), and
       ``(B) if any person treated as a single taxpayer under this 
     subsection (after application of subparagraph (A)), or any 
     predecessor of such person, was an expatriated entity (as 
     defined in section 7874(a)(2)) for any taxable year ending 
     after March 4, 2003, then all persons treated as a single 
     taxpayer with such person shall be treated as expatriated 
     entities.
       ``(f) Election To Have Credit Not Apply.--
       ``(1) In general.--A taxpayer may elect to have this 
     section not apply for any taxable year.
       ``(2) Time for making election.--An election under 
     paragraph (1) for any taxable year may be made (or revoked) 
     at any time before the expiration of the 3-year period 
     beginning on the last date prescribed by law for filing the 
     return for such taxable year (determined without regard to 
     extensions).
       ``(3) Manner of making election.--An election under 
     paragraph (1) (or revocation thereof) shall be made in such 
     manner as the Secretary may by regulations prescribe.''.
       (b) Allowance as General Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (31), by striking the period 
     at the end of paragraph (32) and inserting ``, plus'', and by 
     adding at the end the following:
       ``(33) in the case of a Patriot employer (as defined in 
     section 45T(b)) for any taxable year, the Patriot employer 
     credit determined under section 45T(a).''.
       (c) Denial of Double Benefit.--Subsection (a) of section 
     280C of the Internal Revenue Code of 1986 is amended by 
     inserting ``45T(a),'' after ``45S(a)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2019.

                          ____________________