Corporate Responsibility and Taxpayer Protection Act of 2022

To amend the Internal Revenue Code of 1986 to impose a tax on employers whose employees receive certain Federal benefits. 1. Short title This Act may be cited as the Corporate Responsibility and Taxpayer Protection Act of 2022 2. Tax on employers with employees receiving certain Federal benefits (a) In general The Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter: 37 Employers with employees receiving certain Federal benefits 4501. Employers with employees receiving certain Federal benefits (a) Imposition of corporate welfare tax There is hereby imposed on each large employer a tax equal to 100 percent of the qualified employee benefits with respect to such employer for the taxable year. (b) Large employer (1) In general For purposes of this section, the term large employer (2) Rules for determining employer size For purposes of this subsection— (A) Application of aggregation rule for employers All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 (B) Full-time equivalents treated as full-time employees Solely for purposes of determining whether an employer is a large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120. (C) Employers not in existence in preceding year In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is a large employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. (D) Predecessors Any reference in this subsection to an employer shall include a reference to any predecessor of such employer. (3) Certain employers exempt For purposes of paragraph (1), an employer shall not be considered a large employer if— (A) such employer pays all employees a wage of $15 per hour (or the salaried equivalent) or more, or (B) such employer holds less than $100 million in assets. (c) Qualified employee benefits For purposes of this section: (1) In general The term qualified employee benefits (2) Qualified Federal benefits The term qualified Federal benefits (A) The dollar value of supplemental nutrition assistance for which the household (as defined in section 3(m) of the Food and Nutrition Act of 2008) that includes such individual is eligible. (B) The dollar value of meals that such individual or dependents of such individual are eligible for under the school lunch program under the Richard B. Russell National School Lunch Act and the school breakfast program under section 4 of the Child Nutrition Act of 1966. (C) The aggregate amount of the monthly assistance payments for rental of a dwelling unit that the household of such individual was a member of is eligible to have made of its behalf pursuant to section 8 of the United States Housing Act of 1937. (D) The amount of payments made under section 1903 of the Social Security Act with respect to expenditures made by a State under a State Medicaid plan under title XIX of such Act (or a waiver of such plan) for medical assistance for such individual or for dependents of such individual. (d) Employee For purposes of this section, the term employee (1) any full-time or part-time employee, (2) any individual who is a full-time or part-time independent contractor (including any employee of such independent contractor) and provides services to the employer, unless— (A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact, (B) the service is performed outside the usual course of the business of the employer, and (C) the individual is customarily engaged in an independently established trade, occupation, professor or business of the same nature as that involved in the service performed, and (3) any individual who is a full-time or part-time joint employee, provided that the employer possess, reserves, or exercises sufficient direct or indirect control over the essential terms and conditions of employment of such employee. (e) Regulations The Secretary, in consultation with the Secretary of Agriculture, the Secretary of Housing and Urban Development, and the Administrator of the Centers for Medicare and Medicaid Services, shall prescribe such regulations as may be necessary or appropriate to carry out this chapter. . (b) Clerical amendments The table of chapters for subtitle D of such Code is amended by inserting after the item relating to chapter 36 the following new item: Chapter 37—Employers with employees receiving certain Federal benefits . (c) Effective date The amendments made by this Act apply with respect to taxable years beginning after December 31, 2022. 3. Unlawful employment practices related to Federal benefits of applicants (a) In general It shall be an unlawful employment practice for any large employer (as defined in section 4501(b) (b) Enforcement A violation of subsection (a) shall be treated as, and enforced by the Secretary of Labor in the same manner as, a violation of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 29 U.S.C. 215(b)

Summary: Corporate Responsibility and Taxpayer Protection Act of 2022 This bill imposes an excise tax on large employers (employing an average of at least 500 full-time employees in the preceding calendar year) for qualified federal benefits received by their employees. The bill defines qualified federal benefits to include food stamps, school lunches, section 8 housing subsidies, and Medicaid benefits. It exempts employers that pay their employees $15 per hour and have less than $100 million in assets from classification as a large employer, thus exempting such employers from the excise tax. The bill also makes it an unlawful employment practice for any large employer to inquire whether an applicant for employment receives federal benefits.