To amend the Internal Revenue Code of 1986 to provide that the preferential income tax treatment of political organizations shall apply only to principal campaign committees, to provide that a cancellation of a loan to such a committee shall be includible in such committee's taxable income, and for other purposes.

Amends Internal Revenue Code provisions governing the taxation of political organizations to apply those provisions only to principal campaign committees. Declares that the cancellation of loans to such a committee and contributions from a lender used directly or indirectly to make payments on the lender's loan are not included in the term "exempt function income," subject to exception.

Includes in the gross income of any political organization any cash contribution from an individual in excess of $100. Subjects that excess to taxation.