A HOUSE RESOLUTION URGING CONGRESS TO ELIMINATE UNFAIR TAX ADVANTAGES FOR CONGRESSIONAL CAMPAIGN COMMITTEES.
Whereas, section 527 of the Internal Revenue Code provides for the taxation of income earned by political campaign committees; and
Whereas, the net income is taxable at the rate of thirty‑five percent (35%), which is the highest corporate income tax rate and, for most corporations, applies only to net income above ten million dollars ($10,000,000); and
Whereas, in section 527(h) of the Internal Revenue Code, Congress has created a special exception to this tax for the principal campaign committees of Congressional candidates, so that the first fifty thousand dollars ($50,000) of their net income is taxed at the lowest corporate income tax rate, fifteen percent (15%); and
Whereas, over fifty thousand dollars ($50,000), the income of Congressional campaign committees continues to benefit from special tax treatment, enjoying rates below the rate paid by other political committees on the amount up to ten million dollars ($10,000,000); and
Whereas, this special treatment for Congressional candidates, which does not extend to local, state, or other political candidates, is inequitable and without justification; Now, therefore,
Be it resolved by the House of Representatives:
SECTION 1.  The North Carolina House of Representatives requests our elected representatives in the United States Congress to eliminate the unfair treatment of local and state political candidates by repealing the special tax break for Congressional candidates found in section 527(h) of the Internal Revenue Code and using the resulting revenue gain to reduce the tax rate on political campaign committees in general, so that all political campaign committees share an equal tax burden at a reasonable rate.
SECTION 2.  The Principal Clerk shall transmit a certified copy of this resolution to each member of North Carolina's Congressional delegation.
SECTION 3.  This resolution is effective upon adoption.