,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bigf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #f1 #bjbe,mr4  
,mor5o introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to impose an      
excise tax on paym5ts by ,unit$ ,/ates  
taxpay]s to =eign p]sons = s]vices      
provid$ to ,unit$ ,/ates consum]s1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,halt+ ,int]national   
,relocation ( ,employm5t ,act or !      
,,hire ,act4  #b4 ,outs\rc+ excise tax  
7a7 ,9 g5]al ,subtitle ,d ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new *apt]3  #ej;,b    
,outs\rc+  ,sec4 #ejjj;,e4 ,outs\rc+    
paym5ts4  #ejjj;,e4 ,outs\rc+ paym5ts   
7a7 ,imposition ( tax ,!re is h]eby     
impos$ a tax on any ,unit$ ,/ates p]son 
mak+ an outs\rc+ paym5t a tax equal to  
#be p]c5t ( ! am\nt ( su* paym5t4  7b7  
,outs\rc+ paym5t ,= purposes ( ?is      
section-- 7#a7 ,9 g5]al ,! t]m outs\rc+ 

paym5t means any premium1 fee1 royalty1 
s]vice *>ge1 or o!r paym5t made-- 7,a7 9
 ! c\rse ( a trade or bus9ess1  7,b7 to 
a =eign p]son1 &  7,c7 ) respect to     
labor or s]vices ! b5efit ( :i* is      
direct$1 directly or indirectly1 to     
consum]s locat$ 9 ! ,unit$ ,/ates4  7#b7
 ,mix$ paym5ts ,9 ! case ( any paym5t to
 a =eign p]son ) respect to :i* labor or
 s]vices are direct$ to consum]s bo? )9 
& )\t ! ,unit$ ,/ates1 ! am\nt treat$ z 
an outs\rc+ paym5t %all n exce$ ! am\nt 
equal to ! product ( su* paym5t & a     
fraction-- 7,a7 ! num]ator ( :i* is !   
am\nt ( labor or s]vices ) respect to   
su* paym5t direct$ to consum]s )9 !     
,unit$ ,/ates1 to  7,b7 ! labor or      
s]vices ) respect to su* paym5t direct$ 
to all consum]s4  7c7 ,=eign p]son ,=   
purposes ( ?is section1 ! t]m =eign     
p]son means any p]son :o is n a ,unit$  
,/ates p]son1 except t su* t]m %all n   
include any corporation or p>tn]%ip :i* 
is organiz$ "u ! laws ( a possession ( !
 ,unit$ ,/ates4  7d7 ,regulations & o!r 

guidance ,! ,secret>y %all prescribe su*
 regulations & o!r guidance z may be    
necess>y or appropriate to c>ry out ?is 
section1 includ+ regulations or guidance
 to prev5t ! avoidance or abuse ( !     
purposes ( ?is section1 includ+ ?r\gh ! 
use ( relat$ p>ties1 controll$ =eign    
corporations1 & o!r int]m$i>ies1 or     
?r\gh ! use ( transf] pric+ arrangem5ts4
  4  7b7 ,tax n d$uctible ,section      
#bge7;a77#f7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ #ej;,b1 aft] 
#ej;,a4  7c7 ,report+ ,! ,secret>y ( !  
,treasury1 or ! ,secret>y's delegate1   
may-- 7#a7 require ,unit$ ,/ates p]sons 
mak+ paym5ts to =eign p]sons 7z def9$ 9 
section #ejjj;,e ( ! ,int]nal ,rev5ue   
,code ( #aihf1 z add$ by subsection 7a77
 to file a return ( tax "u section      
#ejjj;,e ( su* ,code or to file an      
in=mation return conc]n+ su* paym5ts1   
:i* may include-- 7,a7 in=mation on :e!r
 su* paym5ts are outs\rc+ paym5ts 7z    
def9$ 9 section #ejjj;,e ( su* ,code71 &
  7,b7 su* o!r in=mation conc]n+ su*    

paym5t z ! ,secret>y may reasonably     
require to en=ce ! am5dm5ts made by ?is 
section1 &  7#b7 require ! (fic]s ( any 
corporation to c]tify on su* return1 "u 
p5alty ( p]jury1 ! "* ( su* paym5ts4  ,=
 purposes "p ,,ii ( sub*apt] ,b ( *apt] 
#fh ( ! ,int]nal ,rev5ue ,code ( #aihf1 
any return requir$ to be fil$ "u        
p>agraph 7#a7 %all be treat$ z an       
in=mation return4  7d7 ,increas$ p5alty 
= failure ,to pay tax ,section #ffea7;a7
 ( ! ,int]nal ,rev5ue ,code is am5d$ by 
add+ at ! end ! foll[+ new s5t5ce3 ,9 ! 
case ( ! failure to pay any tax impos$  
"u *apt] #ej;,b1 p>agraphs 7#b7 & 7#c7  
%all be appli$ by sub/itut+ #ej p]c5t = 
#je4 p]c5t ea* place x appe>s & )\t     
reg>d to ! phrase n exce$+ #be p]c5t 9 !
 aggregate ea* place x appe>s44  7e7 ,no
 inf]5ce ,no?+ 9 ?is section or !       
am5dm5ts made by ?is section %all be    
con/ru$ to limit ! application ( !      
economic sub/ance doctr9e ) respect to  
any paym5t describ$ 9 section           
#ejjj;,e7b7 ( ! ,int]nal ,rev5ue ,code (

 #aihf1 z add$ by subsection 7a74  7f7  
,cl]ical am5dm5t ,! table ( *apt]s =    
subp>t ,d ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,*apt] #ej;,b--,outs\rc+  4 
7g7 ,effective date ,! am5dm5ts made by 
?is section %all apply to paym5ts made  
aft] ,decemb] #ca1 #bjbe4  #c4 ,dome/ic 
work=ce fund  7a7 ,9 g5]al ,sub*apt] ,a 
( *apt] #ih ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #ieab4 ,dome/ic    
work=ce fund  7a7 ,e/abli%m5t ,!re is   
e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates
 a tru/ fund to be kn[n z ! ,dome/ic    
,work=ce ,fund 7h]eaft] 9 ?is section   
ref]r$ to z ! ,fund71 consi/+ ( su*     
am\nts z may be appropriat$1 cr$it$1 or 
paid into ! ,fund z provid$ 9 ?is       
section or section #ifjb7;b74  7b7      
,transf] to fund ,!re are h]eby         
appropriat$ to ! ,fund am\nts equival5t 
to ! am\nts receiv$ 9 ! ,treasury "u--  
7#a7 ! tax impos$ "u section #ejjj;,e1  
7#b7 s mu* ( ! additions to tax "u      

section #fjea7;a7 z relates to ! failure
 to pay taxes impos$ "u section         
#ejjj;,e1 &  7#c7 s mu* ( ! p5alties    
impos$ "u "p ,,ii ( su**apt] ,b ( *apt] 
#fh z relates to returns describ$ 9     
section #b7;b7 ( ! ,halt+ ,int]national 
,relocation ( ,employm5t ,act4  7c7     
,exp5ditures f fund ,am\nts 9 ! ,fund   
%all be available1 )\t fur!r            
appropriation1 solely = ! foll[+        
purposes3 7#a7 ,work=ce developm5t &    
retra9+ programs adm9i/]$ by ! ,dep>tm5t
 ( ,labor4  7#b7 ,appr5tice%ip programs 
& p>tn]%ips ) indu/ry to exp& dome/ic   
employm5t 9 sectors impact$ by outs\rc+4
  7#c7 ,grants to ,/ates = work=ce      
developm5t initiatives t>get$ at        
communities ) high levels ( job         
displacem5t4  4  7b7 ,cl]ical am5dm5t ,!
 table ( sections = sub*apt] ,a ( *apt] 
#ih ( su* ,code is am5d$ by add+ at !   
end ! foll[+ new item3  ,sec4 #ieab4    
,dome/ic work=ce fund4  4  #d4 ,d5ial ( 
income tax d$uction on outs\rc+ paym5ts 
7a7 ,9 g5]al ,"p ,,ix ( sub*apt] ,b (   

*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #bhj;,i4 ,outs\rc+       
paym5ts ,no d$uction %all be all[$ "u   
?is *apt] = any outs\rc+ paym5t 7z def9$
 9 section #ejjj;,e7b774  4  7b7        
,cl]ical am5dm5t ,! table ( section = "p
 ,,ix ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #bhj;,i4 ,outs\rc+ paym5ts4  4    
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to paym5ts made  
aft] ,decemb] #ca1 #bjbe1 9 taxable ye>s
 end+ aft] su* date4