[Congressional Record Volume 149, Number 72 (Wednesday, May 14, 2003)]
[Senate]
[Pages S6260-S6261]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON:
  S. 1059. A bill to amend the Internal Revenue Code of 1986 to adjust 
the tax rate for political organizations; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to 
correct an inequity in our tax code.
  Currently, we use inconsistent standards to tax different types of 
political campaign committees. Congressional campaigns are taxed at the 
applicable corporate rates: depending on how much taxable income a 
campaign generates, it will be taxed at rates that vary from 15 percent 
to 35 percent. However, all other campaigns must pay the highest 
corporate rate of 35 percent. This is unfair.
  It's wrong to tax some campaigns at rates that change according to 
income level and then arbitrarily charge others at the highest possible 
rate. This disparity particularly hurts local and State candidates who 
generally have relatively low levels of taxable income but have to pay 
the same 35 percent rate as campaigns that may generate more than $10 
million in taxable income.
  The bill I am introducing today will eliminate this inequity by 
taxing all campaign committees at the corporate rate based on their 
level of income. No longer will congressional campaigns be allowed to 
receive preferred tax treatment. All campaigns will be treated the 
same.
  I hope my colleagues will support this effort to improve the fairness 
of the tax code.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

[[Page S6261]]

  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1059

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. TAX RATE FOR POLITICAL ORGANIZATIONS.

       (a) In General.--Paragraph (1) of section 527(b) of the 
     Internal Revenue Code of 1986 (relating to tax imposed) is 
     amended by striking ``highest rate'' and inserting 
     ``appropriate rates''.
       (b) Conforming Amendment.--Subsection (h) of section 527 of 
     the Internal Revenue Code of 1986 (relating to special rule 
     for principal campaign committees) is repealed.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.
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