108th CONGRESS
1st Session
H. R. 2418
To amend the Internal Revenue Code of 1986 to deny all deductions
for business expenses associated with the use of a club that discriminates
on the basis of sex, race, or color.
IN THE HOUSE OF REPRESENTATIVES
June 11, 2003
Mrs. MALONEY (for herself, Mr. SHERMAN, Ms. SLAUGHTER, Mr. JACKSON of Illinois,
Ms. LOFGREN, Ms. JACKSON-LEE of Texas, Mr. OWENS, Ms. BORDALLO, and Mr. PAYNE)
introduced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to deny all deductions
for business expenses associated with the use of a club that discriminates
on the basis of sex, race, or color.
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 `Ending Tax Breaks for Discrimination Act of
2003'.
SEC. 2. DENIAL OF DEDUCTION FOR BUSINESS EXPENSES FOR USE OF CLUB THAT DISCRIMINATES
ON BASIS OF SEX, RACE, OR COLOR.
(a) IN GENERAL- Section 162 of the Internal Revenue Code of 1986 (relating
to trade or business expenses) is amended by redesignating subsection (p)
as subsection (q) and by inserting after subsection (o) the following new
subsection:
`(p) DENIAL OF DEDUCTION FOR USE OF CLUB THAT DISCRIMINATES ON BASIS OF SEX,
RACE, OR COLOR; DENIAL OF DEDUCTION FOR CERTAIN ADVERTISING EXPENSES-
`(1) IN GENERAL- No deduction shall be allowed under this section for any
amount paid or incurred--
`(A) to any private discriminatory club,
`(B) for the use of services or facilities of any private discriminatory
club, or
`(C) for transportation, meals, lodging, and other traveling expenses
(not described in subparagraph (A) or (B)) incurred in connection with
such use.
`(2) ADVERTISING EXPENSES- No deduction shall be allowed under this section
for any amount paid or incurred for--
`(A) advertising of any event held at any facility of a discriminatory
club, or
`(B) advertising for any product or service if the advertising occurs
on any broadcast media during, or in association with, such media's coverage
of any such an event.
`(3) PRIVATE DISCRIMINATORY CLUB- For purposes of this subsection, the term
`private discriminatory club' means any club organized for business, pleasure,
recreation, or other social purpose if such club restricts its membership
or the use of its services or facilities on the basis of sex, race, or color.
`(4) RECEIPTS TO STATE NONDEDUCTIBILITY OF EXPENSES- All receipts for any
expense which is not allowed as a deduction under this section by reason
of subsection (a) shall include the following statement: `The expenditures
covered by this receipt are nondeductible for Federal income tax purposes.'
(b) EFFECTIVE DATE- The amendments made by this section shall apply to amounts
paid or incurred after the date of the enactment of this Act.
END
