I 

116TH CONGRESS 

2D SESSION H. R. 8669 

To amend the Internal Revenue Code of 1986 to impose a tax on employers 

whose employees receive certain Federal benefits. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 23, 2020 

Mr. KHANNA introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a tax on employers whose employees receive certain Federal benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Corporate Responsi5 bility and Taxpayer Protection Act of 2020’’. 


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1 SEC. 2. TAX ON EMPLOYERS WITH EMPLOYEES RECEIVING 

2 CERTAIN FEDERAL BENEFITS. 

3 (a) IN GENERAL.—The Internal Revenue Code of 

4 1986 is amended by inserting after chapter 36 the fol5 lowing new chapter: 

6 ‘‘CHAPTER 37—EMPLOYERS WITH EM7 PLOYEES RECEIVING CERTAIN FED8 ERAL BENEFITS 

9 ‘‘SEC. 4501. EMPLOYERS WITH EMPLOYEES RECEIVING 

10 CERTAIN FEDERAL BENEFITS. 

11 ‘‘(a) IMPOSITION OF CORPORATE WELFARE TAX.— 

12 There is hereby imposed on each large employer a tax 

13 equal to 100 percent of the qualified employee benefits 

14 with respect to such employer for the taxable year. 

15 ‘‘(b) LARGE EMPLOYER.— 

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, the term ‘large employer’ means, with respect 

18 to a calendar year, an employer who employed an 

19 average of at least 500 full-time employees on busi20 ness days during the preceding calendar year. 

21 ‘‘(2) RULES FOR DETERMINING EMPLOYER

22 SIZE.—For purposes of this subsection— 

23 ‘‘(A) APPLICATION OF AGGREGATION RULE

24 FOR EMPLOYERS.—All persons treated as a sin25 gle employer under subsection (b), (c), (m), or 


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1 (o) of section 414 of the Internal Revenue Code 

2 of 1986 shall be treated as 1 employer. 

3 ‘‘(B) FULL-TIME EQUIVALENTS TREATED

4 AS FULL-TIME EMPLOYEES.—Solely for pur5 poses of determining whether an employer is a 

6 large employer under this paragraph, an em7 ployer shall, in addition to the number of full8 time employees for any month otherwise deter9 mined, include for such month a number of full10 time employees determined by dividing the ag11 gregate number of hours of service of employees 

12 who are not full-time employees for the month 

13 by 120. 

14 ‘‘(C) EMPLOYERS NOT IN EXISTENCE IN

15 PRECEDING YEAR.—In the case of an employer 

16 which was not in existence throughout the pre17 ceding calendar year, the determination of 

18 whether such employer is a large employer shall 

19 be based on the average number of employees 

20 that it is reasonably expected such employer 

21 will employ on business days in the current cal22 endar year. 

23 ‘‘(D) PREDECESSORS.—Any reference in 

24 this subsection to an employer shall include a 

25 reference to any predecessor of such employer. 


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1 ‘‘(3) CERTAIN EMPLOYERS EXEMPT.—For pur2 poses of paragraph (1), an employer shall not be 

3 considered a large employer if— 

4 ‘‘(A) such employer pays all employees a 

5 wage of $15 per hour (or the salaried equiva6 lent) or more, or 

7 ‘‘(B) such employer holds less than $100 

8 million in assets. 

9 ‘‘(c) QUALIFIED EMPLOYEE BENEFITS.—For pur10 poses of this section: 

11 ‘‘(1) IN GENERAL.—The term ‘qualified em12 ployee benefits’ means, with respect to a person for 

13 a taxable year, the sum the qualified Federal bene14 fits for which individuals who are employees of such 

15 person for such taxable year. 

16 ‘‘(2) QUALIFIED FEDERAL BENEFITS.—The 

17 term ‘qualified Federal benefits’ means, with respect 

18 to an individual, the following: 

19 ‘‘(A) The dollar value of supplemental nu20 trition assistance for which the household (as 

21 defined in section 3(m) of the Food and Nutri22 tion Act of 2008) that includes such individual 

23 is eligible. 

24 ‘‘(B) The dollar value of meals that such 

25 individual or dependents of such individual are 


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1 eligible for under the school lunch program 

2 under the Richard B. Russell National School 

3 Lunch Act and the school breakfast program 

4 under section 4 of the Child Nutrition Act of 

5 1966. 

6 ‘‘(C) The aggregate amount of the monthly 

7 assistance payments for rental of a dwelling 

8 unit that the household of such individual was 

9 a member of is eligible to have made of its be10 half pursuant to section 8 of the United States 

11 Housing Act of 1937. 

12 ‘‘(D) The amount of payments made under 

13 section 1903 of the Social Security Act with re14 spect to expenditures made by a State under a 

15 State Medicaid plan under title XIX of such 

16 Act (or a waiver of such plan) for medical as17 sistance for such individual or for dependents of 

18 such individual. 

19 ‘‘(d) EMPLOYEE.—For purposes of this section, the 

20 term ‘employee’ means— 

21 ‘‘(1) any full-time or part-time employee, 

22 ‘‘(2) any individual who is a full-time or part23 time independent contractor (including any employee 

24 of such independent contractor) and provides serv25 ices to the employer, unless— 


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1 ‘‘(A) the individual is free from control and 

2 direction in connection with the performance of 

3 the service, both under the contract for the per4 formance of service and in fact, 

5 ‘‘(B) the service is performed outside the 

6 usual course of the business of the employer, 

7 and 

8 ‘‘(C) the individual is customarily engaged 

9 in an independently established trade, occupa10 tion, professor or business of the same nature 

11 as that involved in the service performed, and 

12 ‘‘(3) any individual who is a full-time or part13 time joint employee, provided that the employer pos14 sess, reserves, or exercises sufficient direct or indi15 rect control over the essential terms and conditions 

16 of employment of such employee. 

17 ‘‘(e) REGULATIONS.—The Secretary, in consultation 

18 with the Secretary of Agriculture, the Secretary of Hous19 ing and Urban Development, and the Administrator of the 

20 Centers for Medicare and Medicaid Services, shall pre21 scribe such regulations as may be necessary or appropriate 

22 to carry out this chapter.’’. 

23 (b) CLERICAL AMENDMENTS.—The table of chapters 

24 for subtitle D of such Code is amended by inserting after 

25 the item relating to chapter 36 the following new item: 


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‘‘CHAPTER 37—EMPLOYERS WITH EMPLOYEES RECEIVING CERTAIN

FEDERAL BENEFITS’’. 

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this Act apply with respect to taxable years beginning 

3 after December 31, 2020. 

4 SEC. 3. UNLAWFUL EMPLOYMENT PRACTICES RELATED TO 

5 FEDERAL BENEFITS OF APPLICANTS. 

6 (a) IN GENERAL.—It shall be an unlawful employ7 ment practice for any large employer (as defined in section 

8 4501(b) of the Internal Revenue Code of 1986) to make 

9 inquiries of an applicant for employment, or otherwise 

10 seek information about such an applicant (including 

11 through the use of any form or application), relating to 

12 whether such applicant receives Federal benefits. 

13 (b) ENFORCEMENT.—A violation of subsection (a) 

14 shall be treated as, and enforced by the Secretary of Labor 

15 in the same manner as, a violation of section 6 of the Fair 

16 Labor Standards Act of 1938 (29 U.S.C. 206), except that 

17 for purposes of section 15(b) of such Act (29 U.S.C. 

18 215(b)), the employer shall be liable to the individual al19 leging the violation for any lost wages due the individual 

20 and an additional equal amount of liquidated damages. 

Æ 


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