IN THE SENATE OF THE UNITED STATES
March 31, 2009
Mr. Durbin (for himself and Mr. Specter) introduced the following bill; which was read twice and referred to the Committee on Finance
To establish a revenue source for fair elections financing of Senate campaigns by providing an excise tax on amounts paid pursuant to contracts with the United States Government.
This Act may be cited as
Fair Elections Revenue Act of
Fair Elections Fund revenue
The Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter:
Tax on payments pursuant to certain government contracts
Sec. 4501. Imposition of tax.
Imposition of tax
There is hereby imposed on any payment made to a qualified person pursuant to a qualified 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 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 or a foreign nation, and
has contracts with the Government of the United States with a value in excess of $10,000,000.
Payment of tax
The tax imposed by this section shall be paid by the person receiving such payment.
Use of revenue generated by tax
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 chapter 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.