Electronic Filing and Payment Fairness Act

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Bill ID: 119/hr/1152
Last Updated: July 12, 2026

Sponsored by

Rep. LaHood, Darin [R-IL-16]

ID: L000585

Follow the money

The bill

Electronic Filing and Payment Fairness Act

HR. 1152, 119th Congress — read as touching Commercial Banks.

The sponsor

Rep. LaHood, Darin [R-IL-16]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$77,100 raised

30 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Department of the Treasury" section, p. 745-747 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Received in the Senate and Read twice and referred to the Committee on Finance.

March 31, 2025

Introduced

Committee Review

Floor Action

Passed House

Senate Review

📍 Current Status

Next: Both chambers must agree on the same version of the bill.

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

(sigh) Oh joy, another "fairness" act from the geniuses in Congress. Let me put on my surgical gloves and dissect this mess.

The Electronic Filing and Payment Fairness Act (HR 1152) is a masterclass in Orwellian doublespeak. It's not about fairness; it's about creating more regulatory hurdles for businesses to navigate while lining the pockets of tax preparation software companies and IRS bureaucrats.

**Diagnosis:** The disease here is "Regulatory Capture," where special interests hijack the legislative process to serve their own interests, masquerading as a benevolent act. Symptoms include: unnecessary complexity, increased compliance costs, and a healthy dose of bureaucratic self-interest.

**New Regulations:** This bill amends Section 7502(c) of the Internal Revenue Code to apply the "mailbox rule" to electronic submissions, essentially deeming the date of sending as the date of delivery or payment. Sounds harmless? Not quite. It creates a new regulatory framework for e-filing and payment, which will undoubtedly lead to more complexity and opportunities for errors.

**Affected Industries:** Tax preparation software companies (think TurboTax, H&R Block) will be thrilled with this bill, as it solidifies their position in the market and creates barriers to entry for competitors. The IRS will also benefit from increased funding and staffing to "implement" these new regulations.

**Compliance Requirements and Timelines:** Businesses will need to adapt to the new e-filing and payment rules by December 31, 2025. Expect a flurry of new forms, procedures, and fees to "help" them comply. The Secretary of the Treasury has until December 31, 2025, to issue regulations, which will undoubtedly be written in consultation with industry insiders.

**Enforcement Mechanisms and Penalties:** Ah, the fun part! Non-compliance will result in penalties, fines, and potential audits. Just what small businesses need – more stress and uncertainty. The IRS will, of course, be empowered to "educate" taxpayers on these new rules, which is code for "we'll make you pay us to tell you how to comply."

**Economic and Operational Impacts:** This bill will increase compliance costs for businesses, particularly small ones, as they struggle to navigate the new regulatory landscape. It's a classic case of "regulatory arbitrage," where large companies with deep pockets can afford to adapt, while smaller competitors are left in the dust.

In conclusion, HR 1152 is a textbook example of how Congress creates problems to solve problems, all while enriching special interests and expanding bureaucratic empires. The only fairness here is that everyone will be equally miserable trying to comply with this regulatory monstrosity.

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. LaHood, Darin [R-IL-16]

Congress 119 • 2024 Election Cycle

Total Contributions
$77,100
22 donors
PACs
$0
Organizations
$19,200
Committees
$0
Individuals
$57,900

No PAC contributions found

1
MORONGO BAND OF MISSION INDIANS
2 transactions
$6,600
2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
2 transactions
$3,300
3
SANTA YNEZ BAND OF MISSION INDIANS
2 transactions
$2,300
4
ONEIDA NATION
2 transactions
$2,000
5
BARONA BAND OF MISSION INDIANS
1 transaction
$1,000
6
SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
1 transaction
$1,000
7
D CONSTRUCTION, INC.
1 transaction
$1,000
8
SYCUAN BAND OF THE KUMEYAAY NATION
1 transaction
$1,000
9
LEGACY EXPRESS TRUCKING INC.
1 transaction
$500
10
NARVICK BROTHERS LUMBER CO. INC.
1 transaction
$500

No committee contributions found

1
BOWEN, JODY A
2 transactions
$6,600
2
BOWEN, KENNETH E
2 transactions
$6,600
3
MCKELVAIN, KATHRYN COX
2 transactions
$6,600
4
MCKELVAIN, STEPHEN H
2 transactions
$6,600
5
COULTER, CHRISTOPHER R
1 transaction
$5,000
6
HUFF, BRIAN
1 transaction
$5,000
7
MCMAHON, JAMES P
1 transaction
$5,000
8
CURRIE, L NICOLE
1 transaction
$3,300
9
MERTZ, TROY B
1 transaction
$3,300
10
BUCHEGER, RAYMOND
1 transaction
$3,300
11
RAHN, DONNA J
1 transaction
$3,300
12
RAHN, KEVIN K
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 5 cosponsors. Below are their top campaign contributors.

Rep. DelBene, Suzan K. [D-WA-1]

ID: D000617

Top Contributors

10

1
JAMESTOWN S'KLALLAM TRIBE
OrganizationSEQUIM, WA
$6,600
Mar 31, 2023
2
LUMMI INDIAN NATION
OrganizationBELLINGHAM, WA
$5,000
Jul 17, 2024
3
PUYALLUP TRIBE OF INDIANS
OrganizationTACOMA, WA
$3,700
Jun 28, 2024
4
SNOQUALMIE TRIBE
OrganizationSNOQUALMIE, WA
$3,300
Nov 2, 2023
5
JAMESTOWN S'KLALLAM TRIBE
OrganizationSEQUIM, WA
$3,300
Mar 31, 2023
6
MUCKLESHOOT INDIAN TRIBE
OrganizationAUBURN, WA
$3,300
Jun 1, 2023
7
THE TULALIP TRIBES OF WASHINGTON
OrganizationTULALIP, WA
$3,300
Jun 30, 2023
8
PUYALLUP TRIBE OF INDIANS
OrganizationTACOMA, WA
$3,300
Jun 28, 2024
9
THE TULALIP TRIBES OF WASHINGTON
OrganizationTULALIP, WA
$3,300
Jun 20, 2024
10
MUCKLESHOOT INDIAN TRIBE
OrganizationAUBURN, WA
$3,300
Aug 13, 2024

Rep. Feenstra, Randy [R-IA-4]

ID: F000446

Top Contributors

10

1
PROTECT OUR HERITAGE
OrganizationSKOKIE, IL
$5,000
Dec 1, 2023
2
SAC & FOX TRIBE OF THE MISSISSIPPI IN IOWA
OrganizationTAMA, IA
$2,500
Oct 31, 2024
3
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Sep 11, 2023
4
SAC & FOX TRIBE OF THE MISSISSIPPI IN IOWA
OrganizationTAMA, IA
$1,000
Aug 4, 2023
5
BOGART ASSOCIATES, INC.
OrganizationALEXANDRIA, VA
$500
Apr 26, 2023
6
ANWAR, S JAVAID
MIDLAND ENERGY, INC • CEO/PRESIDENT
IndividualMIDLAND, TX
$13,200
Feb 6, 2024
7
PARKER, SEAN
SEAN N PARKER FOUNDATION • CHAIRMAN
IndividualPALO ALTO, CA
$13,200
Mar 7, 2024
8
WELLS, MIKE
WELLS ENTERPRISES • CEO
IndividualLE MARS, IA
$12,500
Mar 13, 2023
9
LAURIDSEN, NIXON
LGI • CHAIRMAN
IndividualANKENY, IA
$10,000
Dec 12, 2023
10
CROOKHAM, JOE
CEO • CEO
IndividualOSKALOOSA, IA
$10,000
Mar 31, 2023

Rep. Schneider, Bradley Scott [D-IL-10]

ID: S001190

Top Contributors

10

1
WEITMAN, AARON
CASTLE KNIGHT • FINANCE
IndividualHOBOKEN, NJ
$5,000
Mar 18, 2024
2
SHWACHMAN, KIMBERLY
RETIRED • RETIRED
IndividualNORTHBROOK, IL
$3,700
Feb 27, 2024
3
SHWACHMAN, PERRY J
SIDLEY AUSTIN LLP • LAWYER
IndividualNORTHBROOK, IL
$3,700
Mar 19, 2024
4
POWELL, JESSE
RETIRED • RETIRED
IndividualSAN FRANCISCO, CA
$3,300
Nov 5, 2024
5
RAYMAN, STEVE
SELF EMPLOYED • HOTEL BUSINESS
IndividualBIG ROCK, IL
$3,300
Oct 22, 2024
6
CHUDACOFF, MARK R
RETIRED • RETIRED
IndividualPALM BEACH GARDENS, FL
$3,300
Oct 28, 2024
7
KADEN, DAVID
BLACKSTONE • SENIOR MANAGING DIRECTOR
IndividualNEW YORK, NY
$3,300
Oct 30, 2024
8
CUSHMAN, LINDA
RETIRED • RETIRED
IndividualCHICAGO, IL
$3,300
Oct 24, 2024
9
HECKTMAN, JEFFREY B.
HILCO GLOBAL • CEO
IndividualHIGHLAND PARK, IL
$3,300
Oct 28, 2024
10
GRAY, JON
BLACKSTONE • PRESIDENT
IndividualNEW YORK, NY
$3,300
Nov 1, 2024

Rep. Fitzpatrick, Brian K. [R-PA-1]

ID: F000466

Top Contributors

10

1
SANTA YNEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$1,500
Dec 31, 2024
2
STATA FAMILY OFFICE
Organization
$500
Apr 26, 2024
3
ASHER, ROBERT B.
IndividualGWYNEDD VALLEY, PA
$10,000
Oct 9, 2024
4
ASHER, ROBERT B.
ASHER CHOCOLATES • CHAIRMAN
IndividualGWYNEDD VALLEY, PA
$10,000
Sep 30, 2024
5
LEVY, EDWARD JR
EDW C LEVY CO • CHAIRMAN
IndividualBIRMINGHAM, MI
$6,600
Feb 26, 2024
6
CROTTY, THOMAS
RETIRED • RETIRED
IndividualSCOTTSDALE, AZ
$6,600
Feb 27, 2024
7
EVANS, ROGER
GREYLOCK PARTNERS • PARTNER EMERITUS
IndividualSAN FRANCISCO, CA
$6,600
Feb 27, 2024
8
LEACH, RONALD
NPX ONE • CHAIRMAN & CEO
IndividualGENEVA, IL
$6,600
Feb 28, 2024
9
MCCLAIN, MARK
SAILPOINT • CEO
IndividualAUSTIN, TX
$6,600
Mar 2, 2024
10
CROTTY, THOMAS
IndividualSCOTTSDALE, AZ
$6,600
Mar 8, 2024

Rep. Panetta, Jimmy [D-CA-19]

ID: P000613

Top Contributors

10

1
ACROSS THE AISLE PAC
PACWASHINGTON, DC
$1,000
Jan 12, 2023
2
ACROSS THE AISLE PAC
PACWASHINGTON, DC
$500
Mar 23, 2023
3
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Apr 12, 2023
4
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Apr 12, 2023
5
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$3,300
Apr 12, 2023
6
EASTERN BAND OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Oct 16, 2024
7
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$2,500
Nov 9, 2023
8
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,700
Apr 12, 2023
9
CROWN, LESTER
NOT EMPLOYED • NOT EMPLOYED
IndividualCHICAGO, IL
$6,600
Aug 9, 2024
10
KIM, SOON
IndividualSANTA CRUZ, CA
$4,300
Sep 30, 2024

Donor Network - Rep. LaHood, Darin [R-IL-16]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 62 nodes and 45 connections (58 secondary connections hidden)

Total contributions: $130,100

Top Donors - Rep. LaHood, Darin [R-IL-16]

Showing top 22 donors by contribution amount

10 Orgs12 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 helped.

  • +Commercial Banksconfidence 0.80

    Section 2(a)(3) provides clarity on electronic filing and payment, which may reduce administrative burdens for banks and other financial institutions that interact with the IRS, citing the amendment to Section 7502(c) of the Internal Revenue Code of 1986

  • Private equity and hedge funds, which often have complex tax filings, may benefit from the increased efficiency and clarity provided by the electronic filing and payment provisions in Section 2(a)(3)

  • +Crypto & Fintechconfidence 0.80

    Cryptocurrency and fintech companies, which are increasingly subject to tax regulations, may benefit from clearer guidelines on electronic submissions to the IRS, as described in Section 2(a)(3)

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. LaHood, Darin [R-IL-16])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of the Treasury

Strong
Vector: 60%
Pages: 745-747AI Enhanced

AI Analysis:

"HR 1152's goal of applying the mailbox rule to electronic tax submissions aligns with Project 2025's emphasis on modernizing IRS IT systems, improving taxpayer rights, and reducing compliance burdens through clearer, more efficient electronic filing processes."

Key themes:IRS modernizationelectronic filingtaxpayer fairnesscompliance burden reductiontax administration efficiency

— 713 — Department of the Treasury David R. Burton “Towards a Global Tax Cartel?” Policy, Vol. 18, No. 4 (Summer 2002–2003), Center for Independent Studies (Australia), https://www.cis.org.au/wp-content/uploads/2015/04/images/stories/policy- magazine/2002-summer/2002-18-4-david-r-burton.pdf (accessed March 19, 2023). 33. Roberts et al., “Organization for Economic Co-operation and Development (OECD).” 34. See Inflation Reduction Act, § 10301. See also Preston Brashers, “IRS and Allies Downplay 87,000-Person Hiring Binge,” The Daily Signal, August 12, 2022, https://www.dailysignal.com/2022/08/12/the-irs-and-its- allies-downplay-87000-person-hiring-binge/ (accessed March 19, 2023). 35. U.S. Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, May 2021, pp. 88–89, https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf (accessed March 19. 2023). 36. See U.S. Department of the Treasury, Fiscal Year 2022–2026 Strategic Plan. 37. U.S. House of Representatives, Committee on Oversight and Reform, Policy and Supporting Positions, December 2020 (the “plumb book”), p. 127 https://www.govinfo.gov/content/pkg/GPO-PLUMBOOK-2020/ pdf/GPO-PLUMBOOK-2020.pdf (accessed March 19, 2023). 38. Internal Revenue Service, “Organization and Top Officials,” https://www.irs.gov/pub/newsroom/marketing/ internet/irs-organization-chart.pdf (accessed March 19, 2023). See also Internal Revenue Code (26 U.S. Code § 7803(a)–(b)). 39. For a summary of various GAO reports on various IRS IT problems, see Vijay A. D’Souza, “Information Technology: IRS Needs to Address Operational Challenges and Opportunities to Improve Management,” testimony before the Subcommittee on Government Operations, Committee on Oversight and Reform, U.S. House of Representatives, October 7, 2020, GAO–21–178T, https://www.gao.gov/assets/gao-21-178t. pdf (accessed March 19, 2023). Charles O. Rossotti was named IRS Commissioner by President Bill Clinton primarily so that Rossotti could address widely acknowledged IT issues. He made some improvements between 1997 and 2002, but despite large investments, he did not really resolve the IT problems at the IRS. Since that time, the problems have worsened. 40. D’Souza, “Information Technology,” figure 1, p. 5. 41. Internal Revenue Service, IRS Integrated Modernization Business Plan, April 2019, https://www.irs.gov/pub/ irs-pdf/p5336.pdf (accessed March 20, 2023). 42. See, for example, the Omnibus Taxpayers’ Bill of Rights, Public Law 100–647, Subtitle J of Title VI of the Technical and Miscellaneous Revenue Act of 1988; Taxpayer Bill of Rights 2, Public Law 104–168; IRS Restructuring and Reform Act of 1998, Public Law 105–206, Title III; Consolidated Appropriations Act, Public Law 114–113, Title IV, Subtitle A (adding Internal Revenue Code § 7803(a)(3) and other changes); and Taxpayer First Act, Public Law 116–25, Title I. 43. For a list of 68 proposed reforms, see National Taxpayer Advocate, 2022 Purple Book: Compilation of Legislative Recommendations to Strengthen Taxpayer Rights and Improve Tax Administration, December 31, 2021, https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_PurpleBook.pdf (accessed March 19, 2023). Most, though not all, of these proposals have merit. Regarding penalty reform, see Jeremiah Coder, “Achieving Meaningful Civil Tax Penalty Reform and Making It Stick,” Akron Tax Journal, Vol. 27 (2012), https://ideaexchange.uakron.edu/cgi/viewcontent.cgi?article=1153&context=akrontaxjournal (accessed March 19, 2023). 44. Internal Revenue Service, 2023 Congressional Budget Justification & Annual Performance Report and Plan, Rev. 3–2022, https://home.treasury.gov/system/files/266/Internal-Revenue-Service-FY-2023-CJ.pdf (accessed March 19, 2023). 45. Internal Revenue Service, 2021 IRS Data Book: October 1, 2020 to September 30, 2021, table 11, p. 26, https:// www.irs.gov/pub/irs-pdf/p55b.pdf (accessed March 19, 2023). 46. Ibid., 2021 IRS Data Book, table 2, p. 4. 47. Scott A. Hodge, “The Compliance Costs of IRS Regulations, Tax Foundation Fiscal Fact No. 512, June 2016 https://files.taxfoundation.org/legacy/docs/TaxFoundation_FF512.pdf (accessed March 19, 2023). 48. Organization for Economic Cooperation, The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, https://read.oecd-ilibrary.org/taxation/the-multilateral- convention-on-mutual-administrative-assistance-in-tax-matters_9789264115606-en#page1 (accessed March 20, 2023). — 714 — Mandate for Leadership: The Conservative Promise 49. David Burton, “Two Little Known Tax Treaties Will Lead to Substantially More Identity Theft, Crime, Industrial Espionage, and Suppression of Political Dissidents,” Heritage Foundation Backgrounder No. 3087, December 21, 2015 file:///C:/Users/DRBar/Downloads/BG3087-3.pdf. 50. U.S. Department of the Treasury, “CFIUS Enforcement and Penalty Guidelines,” https://home.treasury. gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius- enforcement-and-penalty-guidelines (accessed March 20, 2023). 51. John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law 115–232. Title XVII, https:// home.treasury.gov/sites/default/files/2018-08/The-Foreign-Investment-Risk-Review-Modernization-Act-of- 2018-FIRRMA_0.pdf (accessed March 20, 2023). 52. Dodd–Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203. 53. Peter J. Wallison, “Title I and the Financial Stability Oversight Council,” in Norbert Michel, ed., The Case Against Dodd–Frank: How the “Consumer Protection” Law Endangers Americans, https://www.heritage.org/ government-regulation/report/the-case-against-dodd-frank-how-the-consumer-protection-law-endangers. 54. Norbert J. Michel, “Fixing the Dodd–Frank Derivatives Mess: Repealing Titles VII and VIII,” in Norbert Michel, ed., The Case Against Dodd–Frank: How the “Consumer Protection” Law Endangers Americans, Heritage Foundation, https://www.heritage.org/government-regulation/report/the-case-against-dodd-frank-how-the- consumer-protection-law-endangers. 55. Paul Kupiec, “Title II: Is Orderly Liquidation Authority Necessary to Fix ‘Too Big to Fail’?” in Michel, The Case Against Dodd–Frank. 56. Norbert J. Michel, “Money and Banking Provisions in the Financial CHOICE Act: A Major Step in the Right Direction,” in Prosperity Unleashed: Smarter Financial Regulation (Washington, DC: The Heritage Foundation, 2017), https://www.heritage.org/prosperity-unleashed#:~:text=Smarter%20financial%20regulations%3A%20 solutions%20to,and%20accountable%20than%20ever%20before. 57. Federal Housing Finance Agency, “Single Security Initiative and Common Securitization Platform,” https:// www.fhfa.gov/PolicyProgramsResearch/Policy/Pages/Securitization-Infrastructure.aspx (accessed March 20, 2023). 58. U.S. Department of the Treasury, Financial Crimes Enforcement Network, Congressional Budget Justification and Annual Performance Plan and Report, FY 2023, Table 1.1, p. 3, https://home.treasury.gov/system/ files/266/13.-FinCEN-FY-2023-CJ.pdf (accessed March 19, 2023). 59. See Financial Crimes Enforcement Network, “Annual Report,” https://www.fincen.gov/annual-report (accessed March 19, 2023). 60. Financial Crimes Enforcement Network, “Suspicious Activity Report Statistics (SAR Stats),” https://www.fincen. gov/reports/sar-stats (accessed March 19, 2023). 61. David R. Burton and Norbert J. Michel, “Financial Privacy in a Free Society,” Heritage Foundation Backgrounder No. 3157, September 23, 2016, table 1, p. 10, http://thf-reports.s3.amazonaws. com/2016/BG3157.pdf. 62. Ibid., table 2, p. 11. 63. A recent report showed that just 14 surveyed financial institutions spent $2.4 billion on AML/CFT compliance. Bank Policy Institute, “Getting to Effectiveness: Report on U.S. Financial Institution Resources Devoted to BSA/AML & Sanctions Compliance,” October 29, 2018, p. 4, https://bpi.com/wp-content/uploads/2018/10/ BPI_AML_Sanctions_Study_vF.pdf (accessed March 19, 2023). 64. Burton and Michel, “Financial Privacy in a Free Society;” Norbert J. Michel and Jennifer J. Schulp, “Revising the Bank Secrecy Act to Protect Privacy and Deter Criminals,” Cato Institute Policy Analysis No. 932, July 26, 2022 , https://www.cato.org/sites/cato.org/files/2022-07/PA_932_2.pdf (accessed March 19, 2023); Michael Levi and Peter Reuter, “Money Laundering,” Crime and Justice: A Review of Research, Vol. 34 (2006); and Mariano-Florentino Cuellar, “The Tenuous Relationship between the Fight Against Money Laundering and the Disruption of Criminal Finance,” Journal of Criminal Law and Criminology, Vol. 93, No. 2 (Winter 2003) https://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=7123&context=jclc (accessed March 19, 2023). 65. This would be in cooperation with the IRS because Form 8300 is a joint IRS-FinCEN endeavor. 66. This data, as well as AML-CFT convictions, would published be in cooperation with the U.S. Department of Justice.

Department of the Treasury

Moderate
Vector: 60%
Pages: 745-747AI Enhanced

AI Analysis:

"Both the bill and the Project 2025 Treasury section aim to improve IRS operations and reduce taxpayer burden through modernization—HR 1152 by applying the mailbox rule to electronic submissions, and Project 2025 by advocating for IRS IT reform and more efficient tax administration."

Key themes:IRS modernizationtax administration efficiencyelectronic filingreducing administrative burden

— 712 — Mandate for Leadership: The Conservative Promise 17. For a detailed discussion, see David R. Burton, “Tax Reform: Eliminating the Double Taxation of Corporate Income,” Heritage Foundation Backgrounder No. 3216, May 18, 2017, https://www.heritage.org/sites/default/ files/2017-05/BG3216.pdf. 18. One hundred dollars in corporate income less an 18 percent tax leaves $82. A 15 percent capital gains tax or qualified dividends tax is $12.30, which leaves $69.70, for an effective marginal tax rate of 30 percent. This, of course, abstracts away from certain timing issues. 19. Inflation Reduction Act, Public Law 117–169. 20. Ibid. 21. Tax Cuts and Jobs Act, Public Law 115–97, § 11061, amending Internal Revenue Code § 2010(c). The amounts before inflation adjustments are $5 million and $10 million, respectively. See also Internal Revenue Service, “What’s New: Estate and Gift Tax, Basic Exclusion Amount for Year of Death,” https://www.irs.gov/businesses/ small-businesses-self-employed/whats-new-estate-and-gift-tax (accessed March 22, 2023). 22. The effective tax rate on foreign-derived intangible income should remain equal to the tax rate on global intangible low-taxed income. 23. For miscellaneous itemized deductions, see Internal Revenue Code (26 U.S. Code § 67). Business deductions that were suspended by the 2017 tax bill (other than those related to depreciation) should also be extended. This includes the local lodging expense deduction and entertainment expense deductions. The 2017 tax bill’s modifications to the deduction for personal casualty and theft losses should be made permanent. The Pease limitation on itemized deductions should be permanently eliminated. 24. Bonus depreciation provisions applied to specific industries should be maintained. 25. Employer-provided childcare expenses should also count toward the limitation on benefit deductions. 26. HSAs are flexible and portable, and they help contain costs by giving health care consumers skin in the game. 27. For additional revenue to fund pro-growth tax cuts, lawmakers could gradually phase down the limitation on benefit deductions. 28. Early versions of the 2017 tax bill envisioned reforming the corporate income tax into a destination-based cash flow tax, a form of consumption tax. A tax system that taxes labor and capital-factor incomes equally— and only once—results in higher output and higher incomes. Usually, in the modern public finance literature, this is called a consumption tax. On the economic superiority of consumptions taxes, see N. Gregory Mankiw et al., “Optimal Taxation in Theory and Practice,” Journal of Economic Perspectives, Vol. 23, No. 4 (2009), pp. 147–174, https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.4.147 (accessed March 19, 2023); Alan J. Auerbach, “The Choice Between Income and Consumption Taxes: A Primer,” NBER Working Paper No. 12307, June 2006, https://www.nber.org/system/files/working_papers/w12307/w12307.pdf (accessed March 19, 2023); and Charles E. Walker and Mark A. Bloom eld, eds., The Consumption Tax: A Better Alternative? (Cambridge, MA: Harper and Row, Ballinger, 1987). 29. Hoover Institution, “Simplifying the Tax System: The History of the Flat Tax,” March 1, 2019, https://www. hoover.org/research/simplifying-tax-system-history-flat-tax (accessed March 20, 2023). 30. David R. Burton, “Four Conservative Tax Plans with Equivalent Economic Results,” Heritage Foundation Backgrounder No. 2978, December 7, 2022, https://www.heritage.org/taxes/report/four-conservative-tax- plans-equivalent-economic-results. Consumption tax plans generally include carveouts that exempt very low-income Americans from federal tax liability. 31. Daniel J. Mitchell and Chris Edwards, Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It (Washington, DC: Cato Institute, 2008); Preston Brashers, “Like Constitutional Checks and Balances, Tax Competition Is a Bulwark Against Growth of Government,” March 17, 2022, https://www.heritage.org/ taxes/commentary/constitutional-checks-and-balances-tax-competition-bulwark-against-growth (accessed March 19, 2023). 32. James M. Robers et al., “Organization for Economic Co-operation and Development (OECD): What America Should Do,” Heritage Foundation Backgrounder No. 3593, March 16, 2021, https://www.heritage.org/ sites/default/files/2021-03/BG3593.pdf; Preston Brashers. “The OECD Crusade To Raise Taxes,” Heritage Foundation Commentary, February 4, 2022, https://www.heritage.org/taxes/commentary/the-oecd-crusade- raise-taxes; David Burton, “How the OECD is Promoting More Identity Theft, Crime, Industrial Espionage, and Suppression of Political Dissidents,” July 15, 2016, Heritage Foundation Commentary, https://www.heritage. org/taxes/commentary/how-the-oecd-promoting-more-identity-theft-crime-industrial-espionage-and; — 713 — Department of the Treasury David R. Burton “Towards a Global Tax Cartel?” Policy, Vol. 18, No. 4 (Summer 2002–2003), Center for Independent Studies (Australia), https://www.cis.org.au/wp-content/uploads/2015/04/images/stories/policy- magazine/2002-summer/2002-18-4-david-r-burton.pdf (accessed March 19, 2023). 33. Roberts et al., “Organization for Economic Co-operation and Development (OECD).” 34. See Inflation Reduction Act, § 10301. See also Preston Brashers, “IRS and Allies Downplay 87,000-Person Hiring Binge,” The Daily Signal, August 12, 2022, https://www.dailysignal.com/2022/08/12/the-irs-and-its- allies-downplay-87000-person-hiring-binge/ (accessed March 19, 2023). 35. U.S. Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, May 2021, pp. 88–89, https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf (accessed March 19. 2023). 36. See U.S. Department of the Treasury, Fiscal Year 2022–2026 Strategic Plan. 37. U.S. House of Representatives, Committee on Oversight and Reform, Policy and Supporting Positions, December 2020 (the “plumb book”), p. 127 https://www.govinfo.gov/content/pkg/GPO-PLUMBOOK-2020/ pdf/GPO-PLUMBOOK-2020.pdf (accessed March 19, 2023). 38. Internal Revenue Service, “Organization and Top Officials,” https://www.irs.gov/pub/newsroom/marketing/ internet/irs-organization-chart.pdf (accessed March 19, 2023). See also Internal Revenue Code (26 U.S. Code § 7803(a)–(b)). 39. For a summary of various GAO reports on various IRS IT problems, see Vijay A. D’Souza, “Information Technology: IRS Needs to Address Operational Challenges and Opportunities to Improve Management,” testimony before the Subcommittee on Government Operations, Committee on Oversight and Reform, U.S. House of Representatives, October 7, 2020, GAO–21–178T, https://www.gao.gov/assets/gao-21-178t. pdf (accessed March 19, 2023). Charles O. Rossotti was named IRS Commissioner by President Bill Clinton primarily so that Rossotti could address widely acknowledged IT issues. He made some improvements between 1997 and 2002, but despite large investments, he did not really resolve the IT problems at the IRS. Since that time, the problems have worsened. 40. D’Souza, “Information Technology,” figure 1, p. 5. 41. Internal Revenue Service, IRS Integrated Modernization Business Plan, April 2019, https://www.irs.gov/pub/ irs-pdf/p5336.pdf (accessed March 20, 2023). 42. See, for example, the Omnibus Taxpayers’ Bill of Rights, Public Law 100–647, Subtitle J of Title VI of the Technical and Miscellaneous Revenue Act of 1988; Taxpayer Bill of Rights 2, Public Law 104–168; IRS Restructuring and Reform Act of 1998, Public Law 105–206, Title III; Consolidated Appropriations Act, Public Law 114–113, Title IV, Subtitle A (adding Internal Revenue Code § 7803(a)(3) and other changes); and Taxpayer First Act, Public Law 116–25, Title I. 43. For a list of 68 proposed reforms, see National Taxpayer Advocate, 2022 Purple Book: Compilation of Legislative Recommendations to Strengthen Taxpayer Rights and Improve Tax Administration, December 31, 2021, https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_PurpleBook.pdf (accessed March 19, 2023). Most, though not all, of these proposals have merit. Regarding penalty reform, see Jeremiah Coder, “Achieving Meaningful Civil Tax Penalty Reform and Making It Stick,” Akron Tax Journal, Vol. 27 (2012), https://ideaexchange.uakron.edu/cgi/viewcontent.cgi?article=1153&context=akrontaxjournal (accessed March 19, 2023). 44. Internal Revenue Service, 2023 Congressional Budget Justification & Annual Performance Report and Plan, Rev. 3–2022, https://home.treasury.gov/system/files/266/Internal-Revenue-Service-FY-2023-CJ.pdf (accessed March 19, 2023). 45. Internal Revenue Service, 2021 IRS Data Book: October 1, 2020 to September 30, 2021, table 11, p. 26, https:// www.irs.gov/pub/irs-pdf/p55b.pdf (accessed March 19, 2023). 46. Ibid., 2021 IRS Data Book, table 2, p. 4. 47. Scott A. Hodge, “The Compliance Costs of IRS Regulations, Tax Foundation Fiscal Fact No. 512, June 2016 https://files.taxfoundation.org/legacy/docs/TaxFoundation_FF512.pdf (accessed March 19, 2023). 48. Organization for Economic Cooperation, The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, https://read.oecd-ilibrary.org/taxation/the-multilateral- convention-on-mutual-administrative-assistance-in-tax-matters_9789264115606-en#page1 (accessed March 20, 2023).

Small Business Administration

Moderate
Vector: 58%
Pages: 795-797AI Enhanced

AI Analysis:

"HR 1152 seeks to reduce administrative burdens and improve efficiency in tax filing for businesses, which aligns with the Project 2025 SBA focus on regulatory reform, streamlining processes, and reducing burdens on small enterprises."

Key themes:regulatory burden reductionprocess modernizationsmall business supportefficiency improvementelectronic submissions

— 763 — Small Business Administration 40. U.S. Small Business Administration, Office of Inspector General, Top Management and Performance Challenges Facing the Small Business Administration in Fiscal Year 2023, p. iv. 41. H.R. 748, CARES (Coronavirus Aid, Relief, and Economic Security) Act, Public Law No. 116-136, 116th Congress, March 27, 2020, https://www.congress.gov/116/plaws/publ136/PLAW-116publ136.pdf (accessed February 19, 2023). 42. Sarah McCammon, “Planned Parenthood Asked to Return Funds from Paycheck Protection Program,” NPR, May 21, 2020, https://www.npr.org/2020/05/21/859991359/planned-parenthood-asked-to-return-funds- from-paycheck-protection-program (accessed February 18, 2023). 43. Letter from William Manger, Associate Administrator, U.S. Small Business Administration, to Laura Meyers, Planned Parenthood of Metropolitan Washington, “Re: Notice of Investigation and Request for Records,” May 19, 2020, https://s3.documentcloud.org/documents/6922122/SBA-Letter-Planned-Parenthood-DC.pdf (accessed February 18, 2023). 44. Press release, “Lankford, HSGAC Republicans Demand Details on Illegal PPP Loans to Planned Parenthood Affiliates,” Office of U.S. Senator James Lankford, April 28, 2022, https://www.lankford.senate.gov/news/press- releases/lankford-hsgac-republicans-demand-details-on-illegal-ppp-loans-to-planned-parenthood-affiliates (accessed February 18, 2023). 45. Press release, “Romney, Colleagues Request Information from SBA Administrator Guzman on Illegal PPP Loans Given to Planned Parenthood Affiliates,” Office of U.S. Senator Mitt Romney, April 28, 2022, https:// www.romney.senate.gov/romney-colleagues-request-information-from-sba-administrator-guzman-on- illegal-ppp-loans-given-to-planned-parenthood-affiliates/ (accessed February 18, 2023). 46. 13 C.F.R. §§ 109.400(b)(11), https://www.law.cornell.edu/cfr/text/13/109.400; 123.301(g), https://www.law. cornell.edu/cfr/text/13/123.301; 123.502(n), https://www.law.cornell.edu/cfr/text/13/123.502; and 123.702(b)(6), https://www.law.cornell.edu/cfr/text/13/123.702 (all accessed February 19, 2023). 47. U.S. Small Business Administration, “Religious Eligibility Worksheet for all 7(a) and 504 Loan Programs” SBA Form 1971, http://www.sba.gov/sites/default/files/2020-11/sba-form-1971.pdf (accessed February 18, 2023). 48. U.S. Small Business Administration, “Ensuring Equal Treatment for Faith-Based Organizations in SBA’s Loan and Disaster Assistance Program.” 49. See, for example, Carson v. Makin, 596 U.S. ___ (2022), https://www.supremecourt.gov/ opinions/21pdf/20-1088_dbfi.pdf (accessed February 19, 2023). 50. 28 U.S. Code § 530d, https://www.law.cornell.edu/uscode/text/28/530D (accessed February 19, 2023). 51. U.S. Small Business Administration, “Ensuring Equal Treatment for Faith-Based Organizations in SBA’s Loan and Disaster Assistance Program.” 52. 13 CFR 120.110(k), https://www.law.cornell.edu/cfr/text/13/120.110 (accessed February 19, 2023). 53. U.S. Small Business Administration, “Regulatory Reform Initiative: Streamlining and Modernizing the 7(a), Microloan, and 504 Loan Programs to Reduce Regulatory Burden,” Final Rule, Federal Register, Vol. 87, No. 125 (June 30, 2022), pp. 38900–38910, https://www.federalregister.gov/documents/2022/06/30/2022-13483/ regulatory-reform-initiative-streamlining-and-modernizing-the-7a-microloan-and-504-loan-programs-to (accessed February 18, 2023). 54. Ibid. 55. U.S. Department of Justice, Office of Legal Counsel “Religious Restrictions on Capital Financing for Historically Black Colleges and Universities,” Memorandum Opinion for the Acting General Counsel, Department of Education, August 15, 2019, https://www.justice.gov/sites/default/files/opinions/ attachments/2021/01/01/2019-08-15-hbcu-capfin-2.pdf. (accessed February 18, 2023). 56. U.S. Small Business Administration, Office of Investment and Innovation, SBIR and STTR Annual Report, Fiscal Year 2019, p. 8, https://www.sbir.gov/sites/default/files/SBA_Final_FY19_SBIR_STTR_Annual_Report.pdf (accessed February 18, 2023). 57. S. 4900, SBIR and STTR Extension Act of 2022, Public Law No. 117–183, 117th Congress, September 30, 2022, https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf (accessed February 18, 2023). 58. U.S. Small Business Administration, Office of Investment and Innovation, SBIR and STTR Annual Report, Fiscal Year 2019, pp. 6, 40, and 108. — 764 — Mandate for Leadership: The Conservative Promise 59. Peter L. Singer, “Federally Supported Innovations: 22 Examples of Major Technology Advances that Stem from Federal Support,” Information Technology and Innovation Foundation, February 2014, https://wrnjradio.com/ bipartisan-call-to-crack-down-on-covid-19-ppp-eidl-fraud-prosecute-fraudsters-to-the-fullest-extent-of-the- law/ (accessed March 21, 2023). 60. Wells King, “Uncle Sam’s Top-Performing Venture Fund,” American Compass Case Study, November 2022, https://americancompass.org/wp-content/uploads/2022/11/AC-Case-Study_SBIR_final2.pdf (accessed February 18, 2023). 61. Elisabeth B. Reynolds, Hiram M. Samel, and Joyce Lawrence, “Learning by Building: Complementary Assets and the Migration of Capabilities in U.S. Innovative Firms,” MIT Industrial Performance Center Working Paper No. MIT-IPC-13-001, March 2013, https://ipc.mit.edu/sites/default/files/2019-01/13-001.pdf (accessed February 18, 2023). 62. American Compass, “Where’s The Growth? Assessing the Results of the Globalization Experiment,” March 2022, pp. 3–5, https://americancompass.org/wp-content/uploads/2022/10/AC-Atlas-Wheres-the-Growth.pdf (accessed February 18, 2023). 63. Sridhar Kota and Tom Mahoney, “Innovation Should Be Made in the U.S.A.,” The Wall Street Journal, November 15, 2019, https://www.wsj.com/articles/innovation-should-be-made-in-the-u-s-a-11573833987 (accessed February 18, 2023). 64. S. ___, SBA Reauthorization and Improvement Act of 2019, 116th Congress, 1st Session, Title III, § 303, https://www.rubio.senate.gov/public/_cache/files/80533629-2905-433f-a588-7c4e032f7347/ C096ED9C1EBA68E041CFDA143E01C66C.mir19891.pdf (accessed February 18, 2023). 65. David Adler, “Financing Advanced Manufacturing: Why VCs Aren’t the Answer,” American Affairs, Vol. III, No. 2 (Summer 2019), https://americanaffairsjournal.org/2019/05/financing-advanced-manufacturing-why-vcs- arent-the-answer/ (accessed February 18, 2023). 66. National Association of Manufacturers, “Overview of the Senate HEALS Act,” July 28, 2020, https://documents. nam.org/comm/HEALSActInfo.pdf (accessed February 19, 2023). See also remarks by Senator Mitch McConnell, “HEALS Act,” Congressional Record, Vol. 166, No. 132 (July 27, 2020), pp. S4491–S4492, https:// www.congress.gov/116/crec/2020/07/27/CREC-2020-07-27-pt1-PgS4491-7.pdf (accessed February 20, 2023). 67. S. 1059, American Innovation and Manufacturing Act, 117th Congress, introduced March 25, 2021, https:// www.crfb.org/blogs/whats-11-trillion-heals-act https://www.congress.gov/117/bills/s1059/BILLS-117s1059is.pdf (accessed February 18, 2023). 68. H.R. 7628, IMPROVE (Improve Management, Programs, Resources, and Oversight for Vital Entrepreneurs) the SBA Act, 117th Congress, introduced April 28, 2022, https://www.congress.gov/117/bills/hr7628/BILLS- 117hr7628ih.pdf (accessed February 19, 2023). 69. S. 1120, Small Business Regulatory Flexibility Improvements Act, 116th Congress, introduced April 10, 2019, https://www.congress.gov/116/bills/s1120/BILLS-116s1120is.pdf (accessed February 19, 2023). 70. H.R. 3136, Contract with America Advancement Act of 1996, Public Law No. 104-121, 104th Congress, March 29, 1996, Title II, https://www.congress.gov/104/plaws/publ121/PLAW-104publ121.pdf (accessed February 19, 2023). 71. S. 403, Fair and Open Competition Act, 117th Congress, introduced February 24, 2021, https://www. congress.gov/117/bills/s403/BILLS-117s403is.pdf (accessed February 19, 2023), and H.R. 1284, Fair and Open Competition Act, 117th Congress, introduced February 24, 2021, https://www.congress.gov/117/bills/hr1284/ BILLS-117hr1284ih.pdf (accessed February 19, 2023. 72. President Joseph R. Biden Jr., Executive Order 14063, “Use of Project Labor Agreements for Federal Construction Projects,” February 4, 2022, in Federal Register, Vol. 87, No. 27 (February 9, 2022), pp. 7363–7366, https://www.govinfo.gov/content/pkg/FR-2022-02-09/pdf/2022-02869.pdf (accessed February 19, 2023). 73. “The JOBS Act 4.0: Section-by-Section,” Committee on Banking, Housing, and Urban Affairs, U.S. Senate, https://www.banking.senate.gov/imo/media/doc/the_jobs_act_4.0sectionbysection.pdf (accessed February 19, 2023). 74. Press release, “Luetkeymeyer: SBA Lacks Infrastructure and Expertise to Expand Number of Small Business Lending Companies,” Committee on Small Business, U.S. House of Representatives, November 7, 2022, https:// smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=404376 (accessed February 18, 2023).

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About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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