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Text of the Excess War Profits Act of 2006

This bill was introduced on March 2, 2006, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 2, 2006 (Introduced).

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Source: GPO

I

109th CONGRESS

2d Session

H. R. 4853

IN THE HOUSE OF REPRESENTATIVES

March 2, 2006

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose an additional tax on taxable income attributable to contracts with the United States for goods and services for the war in Iraq.

1.

Short title

This Act may be cited as the Excess War Profits Act of 2006.

2.

Findings

The Congress hereby finds:

(1)

A special tax on the profits of the Nation’s largest corporations would be in accordance with previous precedents: World War II and Korea.

(2)

While large corporations continue to net billions of dollars from the War in Iraq, the Bush Administration continues to cut funding for vital domestic programs.

(3)

Large corporations are using broadly worded contracts to repair Iraq’s petroleum infrastructure and gain a huge head start over potential competitors in redeveloping the country’s vast, outdated oil industry.

(4)

Five large corporations, Halliburton, Bechtel Group, Fluor Corp, Parsons Corp, and the Louis Berger Group, all benefited from the biggest reconstruction project since the Second World War.

(5)

Since the War in Iraq began, Halliburton and its subsidiaries have received more than $2 billion from no bid contracts.

(6)

To date, Halliburton has spent only 10 percent of the funds appropriated by the Federal Government to rebuild the Iraqi infrastructure.

3.

Additional tax on profits from Iraq War contracts

(a)

General rule

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to determination of tax liability) is amended by adding at the end the following new part:

VIII

Additional tax on profits from Iraq War contracts

Sec. 59B. Imposition of additional tax.

59B.

Imposition of additional tax

(a)

General rule

There is hereby imposed (in addition to any other tax imposed by this chapter) a tax equal to 15 percent of so much of taxable income as is attributable to any contract with the United States which is specifically for the provision of goods or services in connection with the war in Iraq.

(b)

Exception for United States personnel

The tax imposed by this section shall not apply to amounts received by any member of the Armed Forces of the United States or any other employee of the United States for services as such a member or employee.

(c)

Additional tax not treated as tax for certain purposes

The tax imposed by this section shall not be treated as a tax imposed by this chapter for purposes of determining—

(1)

the amount of any credit allowable under this chapter, or

(2)

the amount of the minimum tax imposed by section 55.

.

(b)

Clerical amendment

The table of parts for subchapter A of chapter 1 of such Code is amended by adding at the end thereof the following new item:

Part VIII. Additional tax on profits from Iraq War contracts.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.