S. 2973: Stop Holding Up Taxpayers, Deny wages On Washington’s Negligence Act

This bill is designed to impose an additional tax on members of Congress during periods when there is a lapse in federal appropriations, which often leads to government shutdowns. The bill is officially titled the "Stop Holding Up Taxpayers, Deny Wages On Washington’s Negligence Act," or the "SHUTDOWN Act." Below are the key components of the bill:

Imposition of a Daily Tax

The bill introduces a daily tax applicable to each member of Congress during any period of lapse in appropriations. This means that if Congress fails to pass the necessary budget bills, members will incur a tax corresponding to their wages for every day they are affected by the shutdown.

Determining the Applicable Tax

The tax amount is determined based on the member's applicable wages, with the percentage calculated as follows:

• The formula takes into account the total days during the lapse in appropriations that a member served within the taxable year.
• This is divided by the total number of days for which the member served in Congress within that same year.

Definitions

To clarify the terms used in the bill:

• Member of Congress: This includes both Senators and House Representatives, as well as Delegates and the Resident Commissioner from Puerto Rico.
• Lapse in appropriations: Refers to any time frame where there is no regular appropriation bill or continuing resolution enacted for a federal agency or department.

Effective Date

The provisions of the bill would take effect for taxable years beginning after December 31, 2024.

Clerical Changes

The bill also includes a clerical amendment to adjust the Internal Revenue Code by adding a new part focused on taxes related to lapses in appropriations.

Relevant Companies

None found.