S. 2973

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2973 Introduced in Senate (IS)]

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119th CONGRESS
1st Session
S. 2973

To amend the Internal Revenue Code of 1986 to impose a daily tax on 
members of Congress during a lapse in appropriations.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

October 3, 2025

Mr. Moreno introduced the following bill; which was read twice and 
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to impose a daily tax on 
members of Congress during a lapse in appropriations.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Stop Holding Up Taxpayers, Deny 
wages On Washington's Negligence Act'' or the ``SHUTDOWN Act''.

SEC. 2. IMPOSITION OF DAILY TAX ON MEMBERS OF CONGRESS DURING LAPSE IN 
APPROPRIATIONS.

(a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

``PART VIII--TAX RELATING TO LAPSES IN APPROPRIATIONS

``Sec. 59B. Daily tax on members of Congress during lapses in 
appropriations.

``SEC. 59B. DAILY TAX ON MEMBERS OF CONGRESS DURING LAPSES IN 
APPROPRIATIONS.

``(a) Imposition of Tax.--In addition to any other tax, in the case 
of any period in which there is a lapse in appropriations, there is 
hereby imposed on each individual serving as a Member of Congress on 
any day during such period a tax equal to the applicable percentage of 
the applicable wages of such individual.
``(b) Applicable Percentage.--For purposes of this section, the 
term `applicable percentage' means, with respect to any individual, the 
ratio (expressed as a percentage) of--
``(1) the number of days during the period described in 
subsection (a)--
``(A) which occurred during the taxable year, and
``(B) during which such individual served as a 
Member of Congress, and
``(2) the number of days during the taxable year on which 
such individual served as a Member of Congress.
``(c) Applicable Wages.--For purpose of this section, the term 
`applicable wages' means wages (as defined in section 3401(a)) received 
for services performed as a Member of Congress.
``(d) Other Definitions.--For purposes of this subsection--
``(1) Member of congress.--The term `Member of Congress' 
means a member of the Senate or the House of Representatives, a 
Delegate to the House of Representatives, and the Resident 
Commissioner from Puerto Rico.
``(2) Lapse in appropriations.--The term `lapse in 
appropriations' means any period during which any regular 
appropriation bill or continuing resolution for a fiscal year 
is not in effect with respect to any Federal agency or 
department.''.
(b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

``PART VIII--Tax Relating to Lapses in Appropriations''.

(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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