[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4825 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 4825

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2004

  Mr. Owens 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.

    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 ``Excess War Profits Act of 2004''.

SEC. 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        vast, outdated oil industry.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.

SEC. 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:

     ``PART VII--ADDITIONAL TAX ON PROFITS FROM IRAQ WAR CONTRACTS

                              ``Sec. 59B. Imposition of additional tax.

``SEC. 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 VII. 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.
                                 <all>