SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) Corporations are subject to a tax rate of up
to 34 percent or 35 percent.
(2) Due to tax deductions, exclusions, and cred-
its, the net tax liability actually paid by many cor-
porations is far below the real rate. In fact, certain
special-interest tax deductions and expenditures pro-
vide corporations with an extra $70,000,000,000 per
year. Additionally, direct Government subsidies to
corporations will amount to $30,000,000,000 per
year.
(3) Over the past several years, one of the most
serious problems affecting the middle-class has been
corporate downsizing. Many large, wealthy, and
profitable corporations have reduced the number of
their American employees by transferring those jobs
to foreign countries or have reduced the number of
their employees in order to realize an immediate
short-term profit or increase in stock value.
(4) Between April 3, 1975, and January 31,
1996, the relocation of manufacturing operations re-
sulted in over 4,500,000 workers seeking adjustment
assistance for workers under chapter 2 of title II of
the Trade Act of 1974. Because many displaced
workers did not seek assistance, this figure is far
below the actual number of workers displaced.
(5) A higher priority should be given to preserv-
ing American jobs and adding fairness to the Fed-
eral tax system by closing loopholes and eliminating
unnecessary expenditures, thus providing additional
funds to assist in balancing the Federal budget by
2002 while maintaining Medicare and Medicaid at
acceptable levels.
SEC. 3. REDUCTION OF TAX BENEFITS FOR PROFITABLE
LARGE 
CORPORATIONS 
WHICH 
REDUCE
WORKFORCE.
(a) IN GENERAL.—Subchapter C of chapter 1 of the
Internal Revenue Code of 1986 (relating to corporate dis-
tributions and adjustments) is amended by adding at the
end the following new part:
‘‘PART VII—REDUCTION OF TAX BENEFITS FOR
PROFITABLE LARGE CORPORATIONS WHICH
REDUCE WORKFORCE
‘‘Sec. 386. Reduction of tax benefits for profitable large corpora-
tions which reduce workforce.
‘‘SEC. 386. REDUCTION OF TAX BENEFITS FOR PROFITABLE
LARGE 
CORPORATIONS 
WHICH 
REDUCE
WORKFORCE.
‘‘(a) IN GENERAL.—For any taxable year, if any
profitable large corporation reduces by 15 percent or more
the number of employees who perform any task or func-
tion at any facility in the United States, the amount of
each facility-related tax benefit shall be reduced by 50 per-
cent.
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) FACILITY-RELATED TAX BENEFIT.—
‘‘(A) IN GENERAL.—The term ‘facility-re-
lated tax benefit’ means—
‘‘(i) any tax benefit to the extent at-
tributable to a facility described in sub-
section (a), or
‘‘(ii) to the extent that a tax benefit
is not attributable to any facility, a pro
rata portion of such tax benefit (as deter-
mined under regulations prescribed by the
Secretary).
‘‘(B) EXCEPTION.—Such term shall not in-
clude—
‘‘(i) any deduction under section 127
or 129 or any other deduction for the cost
of employee health care, child care, job
training, or retraining, or
‘‘(ii) any other tax benefit (other than
wages) which the Secretary determines by
regulation to be a tax benefit for costs in-
curred primarily for the benefit of employ-
ees rather than the employer.
‘‘(2) LARGE
CORPORATION.—The term ‘large
corporation’ means a corporation or partnership
which is not a small-business concern (within the
meaning of section 3 of the Small Business Act, as
in effect on the date of the enactment of this sec-
tion).
‘‘(3) PROFITABLE.—Any large corporation shall
be treated as profitable, for any taxable year, if the
sum of taxable income (if any) for the 5-taxable-year
period ending with the preceding taxable year (or, if
shorter, the period consisting of all preceding taxable
years of such large corporation) equals or exceeds
the sum of the net operating losses (if any) attrib-
utable to such period.
‘‘(4) RELATED PERSONS.—
‘‘(A) IN
GENERAL.—All related persons
shall be treated as one person.
‘‘(B) RELATED PERSONS DEFINED.—The
term ‘related persons’ means—
‘‘(i) persons bearing a relationship de-
scribed in section 267 or 707(b), and
‘‘(ii) persons treated as a single em-
ployer under subsection (a) or (b) of sec-
tion 52.
‘‘(5) TAX
BENEFIT.—The term ‘tax benefit’
means a credit, deduction, or exclusion allowable
under this title.’’
(b) TRANSMISSION
OF DATA
BY SECRETARY
OF
LABOR.—The Secretary of Labor shall transmit to the
Secretary of the Treasury, not less than annually, a list
of corporations and partnerships described in section
386(a) of the Internal Revenue Code of 1986 (as added
by this section).
(c) CLERICAL AMENDMENT.—The table of parts for
subchapter C of chapter 1 of such Code is amended by
adding at the end the following new item:
‘‘Part VII. Reduction of tax benefits for profitable large corpora-
tions which reduce workforce.’’
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall apply to taxable years
beginning after December 31, 1996.
SEC. 4. ACCELERATION OF LOANS MADE BY CERTAIN GOV-
ERNMENT ENTITIES AS PENALTY AGAINST
PROFITABLE LARGE CORPORATIONS WHICH
REDUCE WORKFORCE.
(a) OPIC LOANS.—Section 235 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2195) is amended by add-
ing at the end the following:
‘‘(g) LIMITATIONS ON ASSISTANCE TO PROFITABLE
LARGE CORPORATIONS THAT REDUCE WORKFORCE.—
‘‘(1) IN GENERAL.—If a facility-related tax ben-
efit of an entity for a taxable year is reduced by rea-
son of section 386(a) of the Internal Revenue Code
of 1986, then—
‘‘(A) the entity shall immediately repay to
the Corporation the amount of any loan made
by the Corporation to the entity under section
234;
‘‘(B) any insurance policy provided by the
Corporation to the entity under such section is
rescinded; and
‘‘(C) until the Secretary of the Treasury
determines that the activity on the basis of
which the facility-related tax benefit of the en-
tity was so reduced has ceased, the Corporation
may not, during the immediately succeeding
taxable year of the entity, extend credit, partici-