[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2775 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 2775
To amend the Internal Revenue Code of 1986 and the Social Security Act
to treat certain domestically controlled foreign persons performing
services under contract with the United States Government as American
employers for purposes of certain employment taxes and benefits.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 13, 2008
Mr. Kerry (for himself, Mr. Obama, Mr. Harkin, and Mrs. Clinton)
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 and the Social Security Act
to treat certain domestically controlled foreign persons performing
services under contract with the United States Government as American
employers for purposes of certain employment taxes and benefits.
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 ``Fair Share Act of 2008''.
SEC. 2. CERTAIN DOMESTICALLY CONTROLLED FOREIGN PERSONS PERFORMING
SERVICES UNDER CONTRACT WITH UNITED STATES GOVERNMENT
TREATED AS AMERICAN EMPLOYERS.
(a) FICA Taxes.--Section 3121 of the Internal Revenue Code of 1986
(relating to definitions) is amended by adding at the end the following
new subsection:
``(z) Treatment of Certain Foreign Persons as American Employers.--
``(1) In general.--If any employee of a foreign person is
performing services in connection with a contract between the
United States Government (or any instrumentality thereof) and
any member of any domestically controlled group of entities
which includes such foreign person, such foreign person shall
be treated for purposes of this chapter as an American employer
with respect to such services performed by such employee.
``(2) Domestically controlled group of entities.--For
purposes of this subsection--
``(A) In general.--The term `domestically
controlled group of entities' means a controlled group
of entities the common parent of which is a domestic
corporation.
``(B) Controlled group of entities.--The term
`controlled group of entities' means a controlled group
of corporations as defined in section 1563(a)(1),
except that--
``(i) `more than 50 percent' shall be
substituted for `at least 80 percent' each
place it appears therein, and
``(ii) the determination shall be made
without regard to subsections (a)(4) and (b)(2)
of section 1563.
A partnership or any other entity (other than a
corporation) shall be treated as a member of a
controlled group of entities if such entity is
controlled (within the meaning of section 954(d)(3)) by
members of such group (including any entity treated as
a member of such group by reason of this sentence).
``(3) Liability of common parent.--In the case of a foreign
person who is a member of any domestically controlled group of
entities, the common parent of such group shall be jointly and
severally liable for any tax under this chapter for which such
foreign person is liable by reason of this subsection.
``(4) Cross reference.--For relief from taxes in cases
covered by certain international agreements, see sections
3101(c) and 3111(c).''.
(b) Social Security Benefits.--Subsection (e) of section 210 of the
Social Security Act (42 U.S.C. 410(e)) is amended--
(1) by striking ``(e) The term'' and inserting ``(e)(1) The
term'',
(2) by redesignating paragraphs (1) through (6) as
subparagraphs (A) through (F), respectively, and
(3) by adding at the end the following new paragraph:
``(2)(A) If any employee of a foreign person is performing
services in connection with a contract between the United
States Government (or any instrumentality thereof) and any
member of any domestically controlled group of entities which
includes such foreign person, such foreign person shall be
treated for purposes of this chapter as an American employer
with respect to such services performed by such employee.
``(B) For purposes of this paragraph--
``(i) The term `domestically controlled group of
entities' means a controlled group of entities the
common parent of which is a domestic corporation.
``(ii) The term `controlled group of entities'
means a controlled group of corporations as defined in
section 1563(a)(1) of the Internal Revenue Code of
1986, except that--
``(I) `more than 50 percent' shall be
substituted for `at least 80 percent' each
place it appears therein, and
``(II) the determination shall be made
without regard to subsections (a)(4) and (b)(2)
of section 1563 of such Code.
A partnership or any other entity (other than a
corporation) shall be treated as a member of a
controlled group of entities if such entity is
controlled (within the meaning of section 954(d)(3) of
such Code) by members of such group (including any
entity treated as a member of such group by reason of
this sentence).''.
(c) Effective Date.--The amendment made by this section shall apply
to services performed after the date of the enactment of this Act.
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