I 
108TH CONGRESS 
1ST SESSION H. R. 1804
To raise revenue and reduce large and increasing Federal budget deficits 
due to the cost of the war in Iraq. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 11, 2003
Mr. OWENS introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To raise revenue and reduce large and increasing Federal 
budget deficits due to the cost of the war in Iraq.
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 ‘‘Domestic Budget Pro-
tection Act of 2003’’. 
SEC. 2. FINDINGS. 
The Congress finds: 
(1) The Congress, after review of Congressional 
Budget Office estimates and other expert opinions, 
finds that for a prolonged period the amount of reve-
nues collected will be substantially less than the pro-
jected Federal expenditures thereby placing burdens 
and constraints on the budget and appropriations 
decision-making process. 
(2) The Congress finds that the budget/appro-
priations for Defense, driven by the war and occupa-
tion of Iraq, is likely to grow rapidly and uncontrol-
lably. These obligations will place intense strains on 
the Budget/Appropriations process. 
(3) The Congress finds that already certain 
vital federally funded programs are experiencing dev-
astating federal financial assistance cuts. More spe-
cifically, assistance for Education, Public Housing, 
Medicaid, Medicare and Temporary Aid to Needy 
Families (TANF) are being subjected to unaccept-
able cuts. 
(4) The Congress finds that there is an estab-
lished precedent for the long-term financing of a 
U.S. War effort. A special tax on the profits of the 
nation’s largest corporations would be in accordance 
with previous precedents: World War I, World War 
II, Korea and Vietnam. 
(5) The Congress finds that in the last 25 years 
corporations have steadily borne less and less of the 
overall tax burden. The corporate share of the tax
burden has dropped from a high of 35 percent in 
1945 to a level of less than 3 percent in the year 
2000. At the same time the individual income share 
of the tax burden has grown from 41 percent in 
1945 to 50 percent in 2000. 
(6) The Congress finds that it is necessary to 
suspend further reductions in assistance to domestic 
programs. It is also imperative that any increases in 
basic revenue be utilized to increase assistance to 
vital domestic programs. 
SEC. 3. CORPORATE TAX SURCHARGE TO FUND WAR IN 
IRAQ. 
(a) GENERAL RULE.—Subchapter A of chapter 1 of 
the Internal Revenue Code of 1986 (relating to determina-
tion of tax liability) is amended by adding at the end 
thereof the following new part:
‘‘PART VIII—CORPORATE TAX SURCHARGE TO 
FUND WAR IN IRAQ
‘‘Sec. 59B. Imposition of surtax.
‘‘SEC. 59B. IMPOSITION OF SURTAX. 
‘‘(a) NORMAL TAX.—
‘‘(1) IN GENERAL.—In the case of a specified 
corporation, the amount of the tax imposed under 
section 11 for any taxable year shall be increased by 
the applicable surtax percentage of the amount of
the tax imposed under section 11 for such taxable 
year (determined without regard to this section). 
‘‘(2) TREATMENT
OF
CERTAIN
TAXES.—For 
purposes of paragraph (1), a tax shall be treated as 
imposed under section 11 if the amount of such tax 
is determined by reference to the provisions of sec-
tion 11 (or by reference to any rate contained there-
in). 
‘‘(b) MINIMUM TAX.—In the case of a specified cor-
poration, the amount of the tentative minimum tax deter-
mined under section 55 for any taxable year shall be in-
creased by the applicable surtax percentage of the amount 
of the tentative minimum tax for such taxable year (deter-
mined without regard to this section). 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) 
SPECIFIED
CORPORATION.—The 
term 
‘specified corporation’ means any corporation if the 
aggregate gross assets of the corporation (as defined 
in section 1202(d)) (or any predecessor thereof) at 
any time during the taxable year or any prior tax-
able year after the date of the enactment of this sec-
tion exceeds $10,000,000. 
‘‘(2) APPLICABLE SURTAX PERCENTAGE.—The 
term ‘applicable surtax percentage’ means, with re-
spect to a taxable year beginning in a calendar year,
percentage specified by the Secretary as the amount 
necessary to fund the war in Iraq for such calendar 
year. 
‘‘(d) COORDINATION WITH OTHER PROVISIONS.—
The provisions of this section shall be applied—
‘‘(1) after the application of section 1201 and 
801(a)(2), but 
‘‘(2) before the application of any other provi-
sion of this title which refers to the amount of tax 
imposed by section 11 or 55, as the case may be. 
No penalty shall be imposed by section 6655 by reason 
of amounts imposed by this section. 
‘‘(e) APPLICATION OF SECTION.—For purposes of 
subsection (c)(2), there shall not be taken into account—
‘‘(1) expenditures before March 1, 2003, and 
‘‘(2) expenditures after the earliest date that no 
member of the Armed Forces of the United States 
is serving on active duty in Iraq.’’
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 of such Code is amended by 
adding at the end thereof the following new item:
‘‘Part VIII. Corporate tax surcharge to reduce deficit.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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