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 inequitable taxation of income earned by political campaign committees; and
Whereas, the net income for all campaign committees, except those for congressional candidates, is taxable at the rate of 35%, which is the highest corporate income tax rate and, for most corporations, applies only to net income above $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 $50,000 of their net income is taxed at the lowest corporate income tax rate, 15%; and
Whereas, over $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 $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 campaign committees by repealing the special tax break for congressional campaign committees found in section 527(h) of the Internal Revenue Code or by allowing the same tax break to all political campaign committees, so that all political campaign committees share an equal tax burden.
SECTION 2.  The Secretary of State 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.