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S 2973119th CongressIn Committee
SHUTDOWN Act
Introduced: Oct 3, 2025
Sponsor: Sen. Moreno, Bernie [R-OH] (R-Ohio)
Economy & Taxes
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill would create a new tax within the Internal Revenue Code that applies only during periods when the federal government experiences a lapse in appropriations (i.e., a government shutdown). Specifically, it imposes a daily tax on each person serving as a Member of Congress for days they are in office during the lapse. The tax is calculated as a percentage of the member’s wages for the days they served during the lapse, with the percentage determined by the fraction of days they served in the taxable year. The act defines who counts as a member and what counts as a lapse, and it directs that the tax apply to taxable years beginning after December 31, 2024. The bill is titled the SHutdown Act.
Key Points
- 1Creates a new tax provision (Sec. 59B) called the Daily Tax on Members of Congress During Lapses in Appropriations.
- 2The tax is an addition to existing taxes and applies only during a lapse in appropriations for any federal agency or department.
- 3The “applicable percentage” is the ratio of days the member served during the lapse in the taxable year to the total days the member served in that taxable year.
- 4The “applicable wages” are wages earned for services performed as a Member of Congress.
- 5The definition of “Member of Congress” includes Senators, Representatives, Delegates to the House, and the Resident Commissioner from Puerto Rico; “lapse in appropriations” covers periods when no regular appropriation bill or continuing resolution is in effect for any federal agency.
Impact Areas
Primary group/area affected: Members of Congress (and their compensation during government lapses).Secondary group/area affected: Federal employees and agencies during lapses (indirectly through the broader context of funding gaps and congressional accountability messaging); taxpayers who bear the political and economic implications of shutdowns.Additional impacts: Administrative and compliance burden to track days in a lapse and calculate the applicable percentage; potential political and constitutional considerations surrounding self-imposed taxes on lawmakers during budgetary standstills.
Generated by gpt-5-nano on Oct 23, 2025