H.R. 2814 — Introduced in House

I 115th CONGRESS 1st Session H. R. 2814 IN THE HOUSE OF REPRESENTATIVES June 7, 2017Mr. Khanna (for himself, Ms. Lee, Mr. Pocan, Ms. Norton, Ms. Barragán, Ms. Jayapal, Mr. Raskin, Ms. Kaptur, Ms. Moore, and Mr. Johnson of Georgia) 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 a tax on employers whose employees receive certain Federal benefits. 1. Short title This Act may be cited as the Corporate Responsibility and Taxpayer Protection Act of 2017. 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: 37 Employers with employees receiving certain Federal benefits 4501. Employers with employees receiving certain Federal benefits (a) Imposition of 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 an applicable 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. (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. . (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, 2017.