S. 2973

119 S2973 IS: Stop Holding Up Taxpayers, Deny wages On Washington’s Negligence Act
 U.S. Senate
 2025-10-03
 text/xml
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 II  119th CONGRESS  1st Session  S. 2973  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.
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  .
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:
VIII
Tax relating to lapses in appropriations
Sec. 59B. Daily tax on members of Congress during lapses in appropriations.
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.