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 Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation 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 Fed-
eral benefits. 
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 Responsi-
bility and Taxpayer Protection Act of 2020’’. 
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SEC. 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 fol-
lowing new chapter: 
‘‘CHAPTER 
37—EMPLOYERS 
WITH 
EM-
PLOYEES RECEIVING CERTAIN FED-
ERAL BENEFITS 
‘‘SEC. 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 sec-
tion, the term ‘large employer’ means, with respect 
to a calendar year, an employer who employed an 
average of at least 500 full-time employees on busi-
ness days during the preceding calendar year. 
‘‘(2) RULES
FOR
DETERMINING
EMPLOYER 
SIZE.—For purposes of this subsection— 
‘‘(A) APPLICATION OF AGGREGATION RULE 
FOR EMPLOYERS.—All persons treated as a sin-
gle employer under subsection (b), (c), (m), or 
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(o) of section 414 of the Internal Revenue Code 
of 1986 shall be treated as 1 employer. 
‘‘(B) FULL-TIME EQUIVALENTS TREATED 
AS
FULL-TIME
EMPLOYEES.—Solely for pur-
poses of determining whether an employer is a 
large employer under this paragraph, an em-
ployer shall, in addition to the number of full- 
time employees for any month otherwise deter-
mined, include for such month a number of full- 
time employees determined by dividing the ag-
gregate 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 pre-
ceding 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 cal-
endar year. 
‘‘(D) PREDECESSORS.—Any reference in 
this subsection to an employer shall include a 
reference to any predecessor of such employer. 
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