Deficit Reduction Check-Off Act - Amends the Internal Revenue Code to allow individual taxpayers to designate on their tax returns an amount (initially between $1 and $10, with annual increases of $1 for each taxable year after 2011) for reducing the federal deficit.
Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to require a sequestration to reduce the federal deficit within 15 days after Congress adjourns to end a session by directing the Office of Management and Budget (OMB) to apply an across-the-board reduction in federal spending equal to 10 times the amount raised by the voluntary tax checkoff under this Act. Exempts from such spending reduction social security and railroad retirement benefits, Medicare benefits, judicial salaries, and veterans benefits.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4308 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4308
To amend the Internal Revenue Code of 1986 to allow individuals to
designate certain amounts on their income tax returns, to require
spending reductions equal to 10 times the amounts so designated, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 15, 2009
Mr. Posey (for himself, Mr. Hall of Texas, Mr. Pitts, Mr. Bartlett, Mr.
Cole, Mr. Issa, Mr. Bilbray, Mr. Gohmert, Mrs. Blackburn, Mr. Franks of
Arizona, Mr. Akin, Mr. Gingrey of Georgia, Mr. Marchant, Mr. Conaway,
Mr. Bishop of Utah, Ms. Fallin, Mr. Thompson of Pennsylvania, and Mr.
Lamborn) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals to
designate certain amounts on their income tax returns, to require
spending reductions equal to 10 times the amounts so designated, and
for other purposes.
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 ``Deficit Reduction Check-Off Act''.
SEC. 2. DESIGNATION OF INCOME TAX PAYMENTS TO REDUCE THE DEFICIT.
(a) Designation.--Subchapter A of chapter 61 of the Internal
Revenue Code of 1986 (relating to returns and records) is amended by
adding at the end the following new part:
``PART IX--DESIGNATION ON INCOME TAX RETURNS FOR REDUCTION OF DEFICIT
``Sec. 6097. Designation for reduction of the deficit.
``SEC. 6097. DESIGNATION FOR REDUCTION OF THE DEFICIT.
``(a) In General.--Every individual, regardless of income tax
liability for the taxable year, may designate that an amount (not less
than $1 and not more than $10) shall be paid over for the purpose of
reducing the deficit of the United States. In the case of a joint
return of husband and wife, each spouse may so designate an amount.
``(b) Income Tax Liability.--For purposes of subsection (a), the
income tax liability of an individual for any taxable year is the
amount of the tax imposed by chapter 1 on such individual for such
taxable year (as shown on his return), reduced by the sum of the
credits (as shown in his return) allowable under part IV of subchapter
A of chapter 1 (other than subpart C thereof).
``(c) Manner and Time of Designation.--Rules similar to the rules
of section 6096(c) shall apply for purposes of this section, except
that the designation shall be accompanied by the following statement:
`The Federal budget will be reduced by an amount equal to ten times the
amount you elect in the box.'.
``(d) Amount Increase.--In the case of each taxable year beginning
after 2011, the maximum dollar amount that may be designated under
subsection (a) shall be increased by $1. In the case of a joint return
of husband and wife, such amount shall increase by $2 each taxable
year.''.
(b) Clerical Amendment.--The table of parts for subchapter A of
chapter 61 of such Code is amended by adding at the end the following
new item:
``Part IX--Designation of Income Tax Payments To Reduce the Deficit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
SEC. 3. TAXPAYER-GENERATED SEQUESTRATION OF FEDERAL SPENDING TO REDUCE
THE DEFICIT.
(a) Sequestration To Reduce Deficit.--Part C of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended by inserting after
section 253 the following new section:
``SEC. 253A. SEQUESTRATION TO REDUCE THE DEFICIT.
``(a) Sequestration.--
``(1) Timing.--Within 15 calendar days after the date
Congress adjourns to end a session, and on the same day as
sequestration (if any) under sections 251, 252, and 253, but
after any sequestration required by those sections, there shall
be a sequestration to eliminate the deficit equivalent to the
amount calculated under paragraph (2).
``(2) Calculation.--
``(A) OMB calculation.--Before October 1st of each
calendar year, OMB shall calculate the total amount
designated under section 6097 of the Internal Revenue
Code of 1986.
``(B) Federal spending reduction.--In accordance
with the deadline under paragraph (1), OMB shall apply
an across the board reduction in Federal spending in an
amount equal to the product of--
``(i) the amount calculated under
subparagraph (A); and
``(ii) 10.
``(3) Carryover.--Any amounts not calculated by OMB by the
October 1st deadline, as set forth in subparagraph (2)(A),
shall be applied to the following fiscal year Federal spending
reduction pursuant to this section.
``(b) Applicability.--
``(1) In general.--Except as provided by paragraph (2),
each account of the United States shall be reduced by a dollar
amount calculated by multiplying the level of budgetary
resources in that account at that time by the uniform
percentage necessary to carry out subsection (a). All
obligational authority so reduced shall be done in a manner
that makes such reductions permanent.
``(2) Exempt accounts.--The following programs shall be
exempt from reduction under any order issued under this
section:
``(A) Benefits payable under the old-age,
survivors, and disability insurance program established
under title II of the Social Security Act.
``(B) Benefits payable under section 3(a), 3(f)(3),
4(a), or 4(f) of the Railroad Retirement Act of 1974.
``(C) Benefits payable under title 18 of the Social
Security Act.
``(D) The rate of pay of any judge or justice
appointed pursuant to article III of the Constitution
of the United States.
``(E) Veteran's benefits listed under sections
905(b) and 905(f) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 905(b), 905(f)).
``(c) Effective Date.--This section shall apply to calender years
beginning after December 31, 2010.''.
(b) Reports.--Section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(1) in subsection (a), by adding at the end of the table
the following new item:
``October 1......................... OMB report estimating amount of income tax designated pursuant to section
6097 of the Internal Revenue Code of 1986.''.
(2) in subsection (c)(1), by inserting ``, and
sequestration to reduce the deficit,'' after ``sequestration'';
(3) in subsection (c), by redesignating paragraph (5) as
paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Reports on sequestration to reduce the deficit.--The
preview reports shall set forth for the budget year estimates
for each of the following:
``(A) The aggregate amount designated under section
6097 of the Internal Revenue Code of 1986 for the last
calendar year ending before the budget year.
``(B) The amount of reductions required under
section 253A and the deficit remaining after those
reductions have been made.
``(C) The sequestration percentage necessary to
achieve the required reduction in accounts under
section 253A(a).''; and
(4) in subsection (f), by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by inserting
after paragraph (3) the following new paragraph:
``(4) Reports on sequestration to reduce the deficit.--The
final reports shall contain all of the information contained in
the deficit taxation designation report required on October
1.''.
(c) Effective Date.--Notwithstanding section 275(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985, the expiration date
set forth in that section shall not apply to the amendments made by
this Act. On the date specified in section 253A of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended by this section,
the President shall issue an order fully implementing the sequestration
required by section 253A of such Act, as amended by this section. This
order shall be effective on issuance.
<all>
Introduced in House
Introduced in House
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Budget
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