text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Corporate Welfare Reduction and Job 
  Preservation Act of 2006''.
  
  SEC. 2. CONGRESSIONAL FINDINGS.
  
      The Congress finds the following:
              (1) Corporations are subject to a tax rate of up to 34 
          percent or 35 percent.
              (2) Over the past several years, one of the most serious 
          problems affecting the middle-class has been corporate 
          downsizing. Many large, wealthy, and profitable corporations 
          have reduced the number of their American employees by 
          transferring those jobs to foreign countries or have reduced 
          the number of their employees in order to realize an immediate 
          short-term profit or increase in stock value.
  
  SEC. 3. REDUCTION OF TAX BENEFITS FOR PROFITABLE LARGE CORPORATIONS 
                WHICH REDUCE WORKFORCE.
  
      (a) In General.--Subchapter C of chapter 1 of the Internal Revenue 
  Code of 1986 (relating to corporate distributions and adjustments) is 
  amended by adding at the end the following new part:
  
  ``PART VII--REDUCTION OF TAX BENEFITS FOR PROFITABLE LARGE CORPORATIONS 
                           WHICH REDUCE WORKFORCE
  
  ``Sec. 386. Reduction of tax benefits for profitable large corporations 
                              which reduce workforce.
  
  ``SEC. 386. REDUCTION OF TAX BENEFITS FOR PROFITABLE LARGE CORPORATIONS 
                WHICH REDUCE WORKFORCE.
  
      ``(a) In General.--For any taxable year, if any profitable large 
  corporation reduces by 15 percent or more the number of employees who 
  perform any task or function at any facility in the United States, the 
  amount of each facility-related tax benefit shall be reduced by 50 
  percent.
      ``(b) Definitions and Special Rules.--For purposes of this 
  section--
              ``(1) Facility-related tax benefit.--
                      ``(A) In general.--The term `facility-related tax 
                  benefit' means--
                              ``(i) any tax benefit to the extent 
                          attributable to a facility described in 
                          subsection (a), or
                              ``(ii) to the extent that a tax benefit is 
                          not attributable to any facility, a pro rata 
                          portion of such tax benefit (as determined 
                          under regulations prescribed by the Secretary).
                      ``(B) Exception.--Such term shall not include--
                              ``(i) any exclusion from gross income under 
                          section 127 or 129 or any other deduction for 
                          the cost of employee health care, child care, 
                          job training, or retraining, or
                              ``(ii) any other tax benefit (other than 
                          wages) which the Secretary determines by 
                          regulation to be a tax benefit for costs 
                          incurred primarily for the benefit of employees 
                          rather than the employer.
              ``(2) Large corporation.--The term `large corporation' 
          means a corporation or partnership which is not a small-
          business concern (within the meaning of section 3 of the Small 
          Business Act, as in effect on the date of the enactment of this 
          section).
              ``(3) Profitable.--Any large corporation shall be treated 
          as profitable, for any taxable year, if the sum of taxable 
          income (if any) for the 5-taxable-year period ending with the 
          preceding taxable year (or, if shorter, the period consisting 
          of all preceding taxable years of such large corporation) 
          equals or exceeds the sum of the net operating losses (if any) 
          attributable to such period.
              ``(4) Related persons.--
                      ``(A) In general.--All related persons shall be 
                  treated as one person.
                      ``(B) Related persons defined.--The term `related 
                  persons' means--
                              ``(i) persons bearing a relationship 
                          described in section 267 or 707(b), and
                              ``(ii) persons treated as a single employer 
                          under subsection (a) or (b) of section 52.
              ``(5) Tax benefit.--The term `tax benefit' means a credit, 
          deduction, or exclusion allowable under this title.''
      (b) Transmission of Data by Secretary of Labor.--The Secretary of 
  Labor shall transmit to the Secretary of the Treasury, not less than 
  annually, a list of corporations and partnerships described in section 
  386(a) of the Internal Revenue Code of 1986 (as added by this section).
      (c) Clerical Amendment.--The table of parts for subchapter C of 
  chapter 1 of such Code is amended by adding at the end the following 
  new item:
  
  ``Part VII. Reduction of tax benefits for profitable large corporations 
                          which reduce workforce''
  
      (d) Effective Date.--This section and the amendments made by this 
  section shall apply to taxable years beginning after December 31, 2006.
  
  SEC. 4. ACCELERATION OF LOANS MADE BY CERTAIN GOVERNMENT ENTITIES AS 
                PENALTY AGAINST PROFITABLE LARGE CORPORATIONS WHICH 
                REDUCE WORKFORCE.
  
      (a) OPIC Loans.--Section 235 of the Foreign Assistance Act of 1961 
  (22 U.S.C. 2195) is amended by adding at the end the following:
      ``(g) Limitations on Assistance to Profitable Large Corporations 
  That Reduce Workforce.--
              ``(1) In general.--If a facility-related tax benefit of an 
          entity for a taxable year is reduced by reason of section 
          386(a) of the Internal Revenue Code of 1986, then--
                      ``(A) the entity shall immediately repay to the 
                  Corporation the amount of any loan made by the 
                  Corporation to the entity under section 234;
                      ``(B) any insurance policy provided by the 
                  Corporation to the entity under such section is 
                  rescinded; and
                      ``(C) until the Secretary of the Treasury 
                  determines that the activity on the basis of which the 
                  facility-related tax benefit of the entity was so 
                  reduced has ceased, the Corporation may not, during the 
                  immediately succeeding taxable year of the entity, 
                  extend credit, participate in an extension of credit, 
                  or provide any insurance, directly to the entity under 
                  such section.
              ``(2) Effect of failure to repay loan.--Interest shall 
          accrue on any amount required by paragraph (1)(A) to be repaid 
          to the Corporation at a rate of 10 percent per month.''.
      (b) Export-Import Bank Loans.--Section 2 of the Export-Import Bank 
  Act of 1945 (12 U.S.C. 635) is amended by adding at the end the 
  following:
      ``(g) Limitations on Assistance to Profitable Large Corporations 
  That Reduce Workforce.--
              ``(1) In general.--If a facility-related tax benefit of an 
          entity for a taxable year is reduced by reason of section 
          386(a) of the Internal Revenue Code of 1986, then--
                      ``(A) the entity shall immediately repay to the 
                  Bank the amount of any loan made by the Bank to the 
                  entity;
                      ``(B) any insurance policy provided by the Bank to 
                  the entity is rescinded; and
                      ``(C) until the Secretary of the Treasury 
                  determines that the activity on the basis of which the 
                  facility-related tax benefit of the entity was so 
                  reduced has ceased, the Bank may not, during the 
                  immediately succeeding taxable year of the entity, 
                  extend credit, participate in an extension of credit, 
                  or provide any insurance, directly to the entity.
              ``(2) Effect of failure to repay loan.--Interest shall 
          accrue on any amount required by paragraph (1)(A) to be repaid 
          to the Bank at a rate of 10 percent per month.''.
target: Corporate Welfare Reduction and Job Preservation Act of 2006 - Amends the Internal Revenue Code to require a 50% reduction in tax benefits for certain large profitable corporations that reduce their employee workforce by 15% or more. Defines "large profitable corporation" as a corporation or partnership that is not defined as a small business concern under the Small Business Act and which has a taxable income that exceeds net operating losses during a specified five-year period.
  
  Amends the Foreign Assistance Act of 1961 and the Export-Import Act of 1945 to require large profitable corporations (as defined by this Act) that reduce their employee workforce by 15% or more to immediately repay loans and forfeit insurance benefits and credit lines provided by such Acts.
feat_title: To amend the Internal Revenue Code of 1986 to reduce by 50 percent certain tax benefits allowable to profitable large corporations which make certain workforce reductions.