Citizen Debt Reduction Contribution Act

Summary: Citizen Debt Reduction Contribution Act - Provides that individuals otherwise entitled to receive payments from the Federal Government may specify that a portion of those payments be used for deficit reduction. 
Expresses the sense of the Congress that any budget savings resulting from this Act should be used solely to reduce net Government spending. 
Amends the Internal Revenue Code to allow taxpayers to designate a specified portion (not less than $1) of their income tax overpayments to be used to reduce U.S. public debt. 
Amends the Social Security Act to direct the Commissioner of Social Security to establish a program to allow recipient donation, by way of designation for transfer to the general fund of the Treasury, of certain social security benefit payments to reduce the public debt. 
Amends Federal law relating to military personnel to provide for a program of allowing members or former members of the armed forces to donate designated portions of their military retirement benefits to reduce the public debt. 
Amends Federal law relating to veterans to provide for a program of allowing veterans to donate designated portions of their veterans' disability compensation to reduce the public debt. 
Provides that savings resulting from the enactment of this Act shall not be considered for purposes of estimates made for this Act under specified provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings).

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Citizen Debt 
Reduction Contribution Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Sense of the Congress.
Sec. 3. Income tax refunds.
Sec. 4. Donation of social security benefits for purposes of reducing 
                            the Federal deficit.
Sec. 5. Donation of military retirement benefits for purposes of 
                            reducing the Federal deficit.
Sec. 6. Donation of veterans' disability compensation for purposes of 
                            reducing the Federal deficit.
Sec. 7. Budgetary treatment of savings resulting from this Act.

SEC. 2. SENSE OF THE CONGRESS.

    It is the sense of the Congress that any budget savings resulting 
from this Act should be used solely to reduce net Government spending. 
Congress appreciates and respects the contributions made by citizens 
participating in the programs authorized by this Act, and shares their 
concerns at excessive Government spending.

SEC. 3. INCOME TAX REFUNDS.

    (a) General Rule.--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 OF INCOME TAX OVERPAYMENTS TO BE USED TO REDUCE 
                              PUBLIC DEBT

                              ``Sec. 6097. Designation of income tax 
                                        overpayments.

``SEC. 6097. DESIGNATION OF INCOME TAX OVERPAYMENTS.

    ``(a) General Rule.--Every taxpayer who makes a return of the tax 
imposed by chapter 1 for any taxable year may designate that a 
specified portion (not less than $1) of any overpayment of tax for such 
taxable year shall be used to reduce the public debt of the United 
States.
    ``(b) Manner and Time of Designation.--Any designation under 
subsection (a) for any taxable year shall be made--
            ``(1) at the time of filing the return of the tax imposed 
        by chapter 1 for such taxable year, and
            ``(2) in such manner as the Secretary may by regulation 
        prescribe, except that such designation shall be made either on 
        the first page of the return or on the page bearing the 
        taxpayer's signature.
    ``(c) Treatment of Amounts Designated.--For purposes of this title, 
the amount designated by any taxpayer under subsection (a)--
            ``(1) shall be treated as being refunded to such taxpayer 
        as of the last date prescribed for filing the return of tax 
        imposed by chapter 1 (determined without regard to extensions) 
        or, if later, the date the return is filed, and
            ``(2) shall be treated as a contribution made by such 
        taxpayer on such date to the United States.''
    (b) Transfer of Designated Amounts For Deficit Reduction.--The 
Secretary of the Treasury shall, from time to time, transfer to the 
special account described in section 3113(d) of title 31, United States 
Code, the amounts designated under section 6097 of the Internal Revenue 
Code of 1986 to be used to reduce the public debt of the United States.
    (c) 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 
                                        overpayments to be used to 
                                        reduce public debt.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 4. DONATION OF SOCIAL SECURITY BENEFITS FOR PURPOSES OF REDUCING 
              THE FEDERAL DEFICIT.

    Section 201(i) of the Social Security Act (42 U.S.C. 401(i)) is 
amended--
            (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (2) in paragraph (2), by striking ``paragraph (1)'' and 
        inserting ``subparagraph (A)'', and by redesignating 
        subparagraphs (A) and (B) as clauses (i) and (ii), 
        respectively;
            (3) by redesignating paragraph (2) as subparagraph (B); and
            (4) by adding at the end the following new paragraph:
    ``(2)(A) The Commissioner of Social Security shall establish a 
program under which recipients of monthly insurance benefits under this 
title may elect to have the Commissioner, in lieu of certification of 
payment of benefits to the recipient pursuant to section 205(i), 
certify to the Managing Trustee that all or a designated portion of 
such benefits be transferred to the general fund of the Treasury as a 
gift which the Managing Trustee is authorized, as Secretary of the 
Treasury, to accept as a gift under subsection (a)(1)(A) of section 
3113 of title 31, United States Code (relating to accepting gifts for 
reducing the public debt).
    ``(B) Amounts to which an election under subparagraph (A) applies 
shall not be includible in gross income for purposes of the Internal 
Revenue Code of 1986. No deduction shall be allowed under such Code 
with respect to any amount which is not includible in gross income by 
reason of the preceding sentence.''

SEC. 5. DONATION OF MILITARY RETIREMENT BENEFITS FOR PURPOSES OF 
              REDUCING THE FEDERAL DEFICIT.

    (a) In General.--Chapter 71 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1413. Donations for purposes of reducing the public debt
    ``(a) The Secretary concerned shall establish a program under which 
a member or former member of the armed forces under the jurisdiction of 
the Secretary who is entitled to receive retired or retainer pay may 
elect that all or a designated portion of such pay for any month be 
transferred to the general fund of the Treasury as a gift to reduce the 
public debt. Any such election may be revoked at any time.
    ``(b) For any month for which an election under subsection (a) is 
in effect, the Secretary concerned shall withhold from the retired or 
retainer pay of the person making the election the amount designated by 
that person in such election and shall transfer the amount so withheld 
to the Secretary of the Treasury.
    ``(c) The Secretary of the Treasury is authorized to accept any 
amount transferred to the Secretary under this section as a gift under 
subsection (a)(1)(A) of section 3113 of title 31 (relating to accepting 
gifts for reducing the public debt).
    ``(d) Amounts to which an election under subsection (a) applies 
shall not be includible in gross income for purposes of the Internal 
Revenue Code of 1986. No deduction shall be allowed under such Code 
with respect to any amount which is not includible in gross income by 
reason of the preceding sentence.''
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1413. Donations for purposes of reducing the public debt.''.

SEC. 6. DONATION OF VETERANS' DISABILITY COMPENSATION FOR PURPOSES OF 
              REDUCING THE FEDERAL DEFICIT.

    (a) In General.--Chapter 53 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 5320. Donations of compensation for purposes of reducing the 
              public debt
    ``(a) The Secretary shall establish a program under which a veteran 
who is entitled to compensation may elect that all or a designated 
portion of such compensation for any month be transferred to the 
general fund of the Treasury as a gift to reduce the public debt. Any 
such election may be revoked at any time.
    ``(b) For any month for which an election under subsection (a) is 
in effect, the Secretary shall withhold from the compensation payable 
to the veteran making the election the amount designated by the veteran 
in such election and shall transfer the amount so withheld to the 
Secretary of the Treasury.
    ``(c) The Secretary of the Treasury is authorized to accept any 
amount transferred to the Secretary under this section as a gift under 
subsection (a)(1)(A) of section 3113 of title 31 (relating to accepting 
gifts for reducing the public debt).
    ``(d) Amounts to which an election under subsection (a) applies 
shall not be includible in gross income for purposes of the Internal 
Revenue Code of 1986. No deduction shall be allowed under such Code 
with respect to any amount which is not includible in gross income by 
reason of the preceding sentence.''
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``5320. Donations of compensation for purposes of reducing the public 
                            debt.''.

SEC. 7. BUDGETARY TREATMENT OF SAVINGS RESULTING FROM THIS ACT.

    Savings resulting from the enactment of this Act shall not be 
considered for purposes of estimates made for this Act under section 
252(d) of the Balanced Budget and Emergency Deficit Control Act of 
1985.