Dollar Bill Act of 2013 - Directs the Board of Governors of the Federal Reserve System (Board) to: (1) designate a "Target Week"; (2) employ a random process to select a specific day, hour, minute, and second during such Target Week as "Target Moment" (which shall not be publicly disclosed); (3) make the value of the U.S. dollar at the Target Moment equal to the price of gold on the exchange operated by the Commodities Exchange, Inc. (COMEX) of the New York Mercantile Exchange, Inc.; and (4) maintain the value of the U.S. dollar within plus or minus 2% of such price ("Target Range") thereafter.
Instructs the Board maintain the value of the United States dollar within the Target Range directly, via open market operations, and not indirectly, as in the current practice of targeting the Federal Funds rate.
Requires the Board to use its banking and bank regulatory powers to maintain and promote stable and effective financial markets during and after the transition to a defined value for the U.S. dollar.
Entitles all entities that depreciate capital assets for tax purposes to 100% expensing of all capital investment for tax purposes in the year that the investment is made.
Requires the Congressional Budget Office (CBO), in addition to the scoring CBO will do of the tax changes provided in this Act, to calculate the impact on federal revenues on a present value basis.
Amends the Federal Reserve Act to remove Federal Reserve Bank authority to pay earnings on reserves.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1576 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1576
To stimulate the economy, provide for a sound United States dollar by
defining a value for the dollar, to remove the authority of Federal
Reserve banks to pay earnings on certain balances maintained at such
banks, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 16, 2013
Mr. Poe of Texas introduced the following bill; which was referred to
the Committee on Financial Services, and in addition to the Committees
on Ways and Means and 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 stimulate the economy, provide for a sound United States dollar by
defining a value for the dollar, to remove the authority of Federal
Reserve banks to pay earnings on certain balances maintained at such
banks, 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 ``Dollar Bill Act of 2013''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Article I, section 8 of the Constitution of the United
States provides that the Congress shall have Power to coin
money, regulate the value thereof, and of foreign coin, and fix
the standard of weights and measures.
(2) Congress effectively delegated the power to regulate
the value of United States money and foreign money to the
Federal Reserve System via the Federal Reserve Act of 1913.
(3) The value of the United States dollar has fallen
dramatically relative to gold, crude oil, other real
commodities and major foreign currencies.
(4) The value of the United States dollar has become
unstable and uncertain.
(5) The Board of Governors of the Federal Reserve System
has not produced a stable and reliable value for the United
States dollar.
(6) The Board of Governors of the Federal Reserve System
cannot reasonably be expected to produce a stable and reliable
value for the United States dollar.
(7) An unstable dollar slows the growth of the economy by
increasing the cost of capital, increasing the risks attendant
to long-term capital investment, and increasing the effective
rate of the corporate income tax.
(8) An unstable dollar reduces the real earnings of
American workers.
(9) An unstable dollar reduces the real value of financial
assets held by the public.
(10) An unstable dollar reduces the real value of pension
plans and retirement accounts upon which Americans depend for
their security.
(11) An unstable dollar damages the economic and political
standing of the United States in the world community.
(12) An unstable dollar gives rise to anxiety, uncertainty,
and risk among the financial markets and the public.
SEC. 3. DIRECTIVES TO THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM.
(a) In General.--Before the end of the 30-day period beginning on
the date of the enactment of this Act, the Board of Governors of the
Federal Reserve System shall designate a specific week (the ``Target
Week'') starting no earlier than 90 days from the date of the enactment
of this Act and ending no later than 120 days from the enactment of
this Act. After designating the Target Week, the Board of Governors of
the Federal Reserve System shall then employ a random process to select
a specific day, hour, minute, and second during the Target Week (the
``Target Moment''), which shall not be publicly disclosed. At the
Target Moment, the Board of Governors of the Federal Reserve System
shall make the value of the U.S. dollar equal to the price of gold on
the exchange operated by the Commodities Exchange, Inc. (COMEX) of the
New York Mercantile Exchange, Inc., as of the Target Moment and
maintain the value of the United States dollar within plus or minus 2
percent of such price (the ``Target Range'') thereafter.
(b) Target.--The Board of Governors of the Federal Reserve System
shall maintain the value of the United States dollar within the Target
Range directly, via open market operations, and not indirectly, as in
the current practice of targeting the Federal Funds rate.
(c) Promotion of Stable and Effective Financial Markets.--The Board
of Governors of the Federal Reserve System shall use the banking and
bank regulatory powers of the Board to maintain and promote stable and
effective financial markets during and after the transition to a
defined value for the United States dollar.
SEC. 4. TAX DEPRECIATION.
Effective January 1, 2013, all entities that depreciate capital
assets for tax purposes shall be entitled to 100 percent expensing of
all capital investment for tax purposes in the year that the investment
is made.
SEC. 5. DIRECTIVE TO THE CONGRESSIONAL BUDGET OFFICE.
In addition to the scoring that the Congressional Budget Office
will do of the tax changes provided in this Act in the normal course of
events, the Congressional Budget Office shall also calculate the impact
on Federal revenues on a present value basis. This calculation shall be
done in the manner that such calculations are done by the Social
Security Trustees, and shall take into account the following:
(1) That first year expensing of capital investment
accelerates, but does not change the total amount of the
depreciation that taxpayers take based upon their investments.
(2) Capital investments by businesses have historically
earned much higher returns than the interest rate on government
bonds.
SEC. 6. CONFLICT OF LAWS PROVISION.
In the event that any provisions of this Act are found to be in
conflict with those of the Full Employment and Balanced Growth Act of
1978, the provisions of this Act shall supersede the provisions of such
Act to the extent of the conflict.
SEC. 7. REMOVAL OF FEDERAL RESERVE BANK AUTHORITY TO PAY EARNINGS ON
RESERVES.
(a) In General.--Section 19(b)(12) of the Federal Reserve Act (12
U.S.C. 461(b)(12)) is amended--
(1) in the heading of such paragraph, by striking
``Earnings'' and inserting ``No earnings'';
(2) in subparagraph (A), by striking ``may receive earnings
to be paid by the Federal Reserve bank at least once each
calendar quarter, at a rate or rates not to exceed the general
level of short-term interest rates'' and inserting ``may not
receive earnings paid by the Federal Reserve bank'';
(3) by striking subparagraph (B); and
(4) by redesignating subparagraph (C) as subparagraph (B).
(b) Effective Date.--The amendments made under this section shall
take effect after the end of the 30-day period beginning on the date of
the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and 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 the Committee on Financial Services, and in addition to the Committees on Ways and Means, and 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 the Committee on Financial Services, and in addition to the Committees on Ways and Means, and 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.
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