1. Short title This Act may be cited as the Stop Bad Employers by Zeroing Out Subsidies Act . 2. Tax on employers with employees receiving certain Federal benefits (a) In general The Internal Revenue Code of 1986 is amended by inserting after chapter 36 the following new chapter: 37 Employers with employees receiving certain Federal benefits 4501. Employers with employees receiving certain Federal benefits (a) Imposition of Corporate Welfare Tax There is hereby imposed on each large employer a tax equal to 100 percent of the qualified employee benefits with respect to such employer for the taxable year. (b) Large employer (1) In general For purposes of this section, the term large employer means, with respect to a calendar year, an employer who employed an average of at least 500 employees on business days during the preceding calendar year. (2) Rules for determining employer size For purposes of this subsection: (A) Application of aggregation rule for employers All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986 shall be treated as 1 employer. (B) Employers not in existence in preceding year In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is a large employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. (C) Predecessors Any reference in this subsection to an employer shall include a reference to any predecessor of such employer. (c) Qualified employee benefits For purposes of this section: (1) In general The term qualified employee benefits means, with respect to a person for a taxable year, the sum of the qualified Federal benefits received by individuals who are employees of such person for such taxable year. (2) Qualified Federal benefits The term qualified Federal benefits means, with respect to an individual, the following: (A) The