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Title IV — Offsets

H.R. 268 · 113th Congress · Jan 15, 2013 · Lineage

IV Offsets

Sec. 401 Reform of tax rules related to political organizations

(a)
Decoupling of rate of tax on political organizations from corporate tax rate— Subsection (b) of section 527 of the Internal Revenue Code of 1986 is amended—
(1)
by striking all that precedes “A tax is hereby imposed” and inserting the following:

“(b) Tax imposed”

(2)
by striking paragraph (2), and
(3)
by striking “the highest rate of tax specified in section 11(b)” and inserting “35 percent”.
(b)
Repeal of exemptions for proceeds from merchandise and entertainment events— Paragraph (3) of section 527(c) of such Code is amended—
(1)
by adding “or” at the end of subparagraph (A),
(2)
by striking the comma at the end of subparagraph (B) and inserting a period, and
(3)
by striking subparagraphs (C) and (D).
(c)
Modification of limitation on tax paid by charitable organizations engaged in exempt functions— Paragraph (1) of section 527(f) of such Code is amended by striking “equal to the lesser of—” and all that follows and inserting “equal to the aggregate amount so expended during the taxable year for such an exempt function. If such aggregate amount does not exceed $500,000, the amount included in gross income under the preceding sentence shall not exceed the net investment income of such organization for the taxable year.”.
(d)
Repeal of graduated rates for principal campaign committees— Section 527 of such Code is amended by striking subsection (h).
(e)
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Sec. 402 Voluntary contributions to the Grassroots Democracy Fund

(a)
In general— Subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

“IX Contributions to Grassroots Democracy Fund

“6098. Contributions to Grassroots Democracy Fund

“(a) In general—Every individual, with respect to the taxpayer’s return for the taxable year of the tax imposed by chapter 1, may designate that a specified portion (not less than $1) of any overpayment of tax shall be contributed to the Grassroots Democracy Fund established under section 541 of the Federal Election Campaign Act of 1971.

“(b) Manner and Time of Designation

“(1) Time of designation—A designation under subsection (a) may be made with respect to any taxable year—

“(A) at the time of filing the return of the tax imposed by chapter 1 for such taxable year, or

“(B) at any other time (after such time of filing) specified in regulations prescribed by the Secretary.

“(2) Manner of designation—Such designation shall be made in such manner as the Secretary prescribes by regulations except that, if such designation is made at the time of filing the return of the tax imposed by chapter 1 for such taxable year, such designation shall be made either on the first page of the return or on the page bearing the taxpayer’s signature.

“(c) Overpayments treated as refunded—For purposes of this title, any portion of an overpayment of tax designated under subsection (a) shall be treated as—

“(1) being refunded to the taxpayer as of the last date prescribed for filing the return of tax imposed by chapter 1 (determined without regard to extensions) or, if later, the date the return is filed, and

“(2) a contribution made by such taxpayer on such date to the United States.

“(d) On-Line contributions—The Secretary shall establish and maintain a Web site through which persons may make contributions to the Grassroots Democracy Fund. Any such contribution shall not be treated as an overpayment of tax but shall be treated as a contribution made by such person to the United States.”

(b)
Clerical amendment— The table of parts for subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
(c)
Effective Date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.