I 
109TH CONGRESS 
1ST SESSION H. R. 4254 
To establish a commission on corporate entitlement reform. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 8, 2005 
Mr. COOPER (for himself, Mr. COSTA, Mr. EMANUEL, Mr. FORD, Mr. SCOTT 
of Georgia, Mr. RYAN of Ohio, Mr. DAVIS of Tennessee, and Ms. 
WASSERMAN SCHULTZ) introduced the following bill; which was referred 
to the Committee on Government Reform, and in addition to the Commit-
tees on Ways and Means and Rules, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To establish a commission on corporate entitlement reform. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Corporate Entitlement 
Reform Act of 2005’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) Federal financial support for industries and 
businesses in the United States can serve a signifi-
cant public purpose by promoting job formation, 
providing small businesses with access to capital, en-
couraging minority entrepreneurship, and assisting 
American companies in competing in the global mar-
ketplace. 
(2) Some Federal subsidies, however, either do 
not provide or no longer provide a public benefit and 
instead have the effect of providing certain compa-
nies or industries with unjustified windfalls or an 
unfair competitive advantage. 
(3) Such unfair subsidies are a burden on 
American taxpayers, and it is in the public interest 
to eliminate corporate subsidies and entitlements 
that do not serve or no longer serve a significant 
public interest. 
(4) The elimination or reduction of unnecessary 
subsidies would also potentially save the Federal 
government billions of taxpayer dollars per year by 
reducing inefficient spending and waste. 
(5) A bipartisan commission is essential to con-
duct a comprehensive review of corporate subsidies 
and entitlements and to advise Congress on those 
subsidies and entitlements that should be revised or 
terminated.
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Corporate Entitlement Reform Commis-
sion established pursuant to section 4(a). 
(2) CORPORATE
ENTITLEMENT.—The term 
‘‘corporate entitlement’’— 
(A) means any direct payment, service, tax 
advantage, tax expenditure, or benefit made by 
the Federal Government to an entity or indus-
try engaged in a profitmaking enterprise, if 
such payment, service, or benefit is provided 
without a reasonable expectation that actions or 
activities undertaken or performed in return for 
such payment, service, or benefit would result 
in a return or benefit to the public at least as 
great as the payment, service, or benefit; 
(B) includes spending subsidies and free or 
below-market-rate services which are provided 
by the Federal Government, or any Federal en-
tity, Federal agency, Government-sponsored en-
terprise, or Government corporation, to or with 
respect to any corporation or other profit-mak-
ing enterprise; 
(C) does not include any payment, service, 
tax advantage, benefit, or protection provided
directly or indirectly by the Federal Govern-
ment to— 
(i) any Federal entity, Federal agen-
cy, Government-sponsored enterprise, or 
Government corporation (as defined in sec-
tion 9101 of title 31, United States Code); 
(ii) any State or local government, In-
dian Tribe or Alaska Native village, or re-
gional or village corporation as defined in 
or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 
1601 et seq.); or 
(iii) any nonprofit organization de-
scribed under section 501(c)(3) of the In-
ternal Revenue Code of 1986 that is ex-
empt from taxation under section 501(a) 
of such Code; and 
(D) does not include any payment, service, 
tax advantage, benefit or protection provided di-
rectly or indirectly by the Federal Government 
that— 
(i) is awarded for the purposes of re-
search and development; 
(ii) primarily benefits public health, 
safety, the environment, or education;
(iii) is necessary to comply with inter-
national trade or treaty obligations; 
(iv) is certified by the United States 
Trade Representative as specifically in-
tended and as substantially needed to pro-
tect the foreign trade interests of the 
United States; or 
(v) is for the purpose of procurement 
of property or services by the United 
States Government. 
(3) GOVERNMENT-SPONSORED
ENTERPRISE.— 
The term ‘‘Government-sponsored enterprise’’ means 
the Federal National Mortgage Association, the Fed-
eral Home Loan Mortgage Corporation, the Federal 
Home Loan Bank System, the Farm Credit Banks, 
the Banks for Cooperatives, the Federal Agricultural 
Mortgage Corporation, the Student Loan Marketing 
Association, the College Construction Loan Insur-
ance Association, and any of their affiliated or mem-
ber institutions. 
SEC. 4. THE COMMISSION. 
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Corporate Enti-
tlement Reform Commission’’. 
(b) DUTIES.—The Commission shall—
(1) examine the programs and tax laws of the 
Federal Government and identify programs and tax 
laws that provide corporate entitlements; 
(2) review corporate entitlements; 
(3) recommend $50,000,000,000 in Federal 
Government savings for the period beginning on Oc-
tober 1, 2006, and ending on September 30, 2016; 
and 
(4) transmit the report described in section 5(a) 
to the Congress. 
(c) LIMITATIONS.— 
(1) CREATION OF NEW PROGRAMS OR TAXES.— 
This Act is not intended to result in the creation of 
new programs or taxes, and the Commission estab-
lished in this section shall limit its activities to re-
viewing existing programs or tax laws with the goal 
of ensuring fairness and equity in the operation and 
application of such programs and laws. 
(2) ELIMINATION OF AGENCIES AND DEPART-
MENTS.—The Commission shall limit its rec-
ommendations to the termination or reform of pay-
ments, benefits, services, or tax advantages, rather 
than the termination of Federal agencies or depart-
ments.