Taxpayer Empowerment Act

Summary: Taxpayer Empowerment Act - Amends the Internal Revenue Code to allow an eligible individual to file a taxpayer empowerment form by April 15 of each year that specifies the individual's allocation of budget authority for major outlay categories. 
Requires the Secretary of the Treasury to compile such budgeting decisions and report to the House and Senate Budget Committees and the Director of the Office of Management and Budget. 
Requires the President's budget and the congressional budget to reflect such taxpayer allocations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Empowerment Act''.

SEC. 2. TAXPAYER EMPOWERMENT FORM.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7524. TAXPAYER EMPOWERMENT FORM.

    ``(a) In General.--An eligible individual may file by April 15 of 
each year with the Secretary a taxpayer empowerment form provided by 
the Secretary. The form may be filed with Form 1040, 1040A, or 1040EZ.
    ``(b) Eligible Individual.--
            ``(1) In general.--For purposes of this section, the term 
        `eligible individual' means, with respect to any year, any 
        individual who is eligible to vote in any Federal election 
        (determined without regard to registration requirements) by 
        April 15 of such year.
            ``(2) Use of state data.--For purposes of determining 
        eligibility, the Secretary shall use data from the various 
        States (to the extent such States can provide such data at 
        minimal cost to the States) concerning the disenfranchisement 
        of any State resident due to mental incompetency or criminal 
        record.
    ``(c) Taxpayer Empowerment Form.--
            ``(1) In general.--The taxpayer empowerment form shall 
        include--
                    ``(A) the name, address, and TIN of the eligible 
                individual,
                    ``(B) a certification statement by such individual 
                of such individual's eligibility to file such form,
                    ``(C) with respect to the fiscal year ending after 
                the filing date of the form, a listing of major outlay 
                categories, and the estimated dollar amount and 
                percentage of budget authority with respect to each 
                such category,
                    ``(D) with respect to the fiscal year beginning 
                after the filing date of the form, an estimate of the 
                overall percentage reduction in all major outlay 
                categories necessary to eliminate the Federal budget 
                deficit ratably over 3 years and over 10 years,
                    ``(E) a request that the eligible individual 
                allocate a percentage of budget authority for each 
                major outlay category for the fiscal year beginning 
                after the filing date of the form (other than the 
                categories specified in paragraphs (16), (17), (18), 
                and (19) of subsection (d) which shall reflect the 
                estimated percentages for such fiscal year), and
                    ``(F) a statement that if the total allocations 
                under subparagraph (E) are greater than, or lesser 
                than, 100 percent, the presumption will be made that 
                the difference represents the individual's desire to 
                increase, or decrease, total spending by such 
                difference.
            ``(2) Estimates with respect to categories.--For purposes 
        of subparagraphs (C), (D), and (E) of paragraph (1), the dollar 
        amount and percentage of budget authority for each such 
        category shall be based on estimates by the Director of the 
        Office of Management and Budget taking into account the budget 
        authority for each such category for the fiscal year.
            ``(3) Limitation on allocation.--Any allocation under 
        paragraph (1)(E) may not result in--
                    ``(A) an increase or reduction of more than 10 
                percent in any major outlay category, and
                    ``(B) a shift of more than 10 percentage points 
                among the various major outlay categories.
    ``(d) Major Outlay Categories.--For purposes of this section, the 
term `major outlay categories' means the following:
            ``(1) National Defense.
            ``(2) International Affairs.
            ``(3) General Science, Space, and Technology.
            ``(4) Energy.
            ``(5) Natural Resources and Environment.
            ``(6) Agriculture.
            ``(7) Commerce and Housing Credit.
            ``(8) Transportation.
            ``(9) Community and Regional Development.
            ``(10) Education, Training, and Employment.
            ``(11) Social Services.
            ``(12) Health, including Medicaid.
            ``(13) Veterans Benefits and Services.
            ``(14) Administration of Justice.
            ``(15) General Government.
            ``(16) Medicare.
            ``(17) Social Security.
            ``(18) Government and Other Pensions, including Veterans.
            ``(19) Net Interest.
    ``(e) Secretary's Report.--Not later than October 15 of each year, 
if more than 50 percent of all eligible individuals filed a form under 
subsection (a) in such year, the Secretary shall--
            ``(1) compile the budgeting decisions of the people 
        reflected in such forms; and
            ``(2) report the averaged allocation (based on the taxpayer 
        empowerment form) for each major outlay category to the 
        Committees on the Budget of the House of Representatives and 
        the Senate and the Director of the Office of Management and 
        Budget.''.
    (b) Conforming Amendments.--Section 7523 of the Internal Revenue 
Code of 1986 (relating to graphic presentation of major categories of 
Federal outlays and income) is amended--
            (1) by striking paragraph (1) of subsection (a) and 
        inserting the following:
            ``(1) Major outlay categories.--The term `major outlay 
        categories' means the following:
                    ``(A) National Defense.
                    ``(B) International Affairs.
                    ``(C) General Science, Space, and Technology.
                    ``(D) Energy.
                    ``(E) Natural Resources and Environment.
                    ``(F) Agriculture.
                    ``(G) Commerce and Housing Credit.
                    ``(H) Transportation.
                    ``(I) Community and Regional Development.
                    ``(J) Education, Training, and Employment.
                    ``(K) Social Services.
                    ``(L) Health, including Medicaid.
                    ``(M) Veterans Benefits and Services.
                    ``(N) Administration of Justice.
                    ``(O) General Government.
                    ``(P) Medicare.
                    ``(Q) Social Security.
                    ``(R) Government and Other Pensions, including 
                Veterans.
                    ``(S) Net Interest.'', and
            (2) by striking paragraph (3) of subsection (b) and 
        redesignating paragraph (4) of such subsection as paragraph 
        (3).
    (c) Clerical Amendment.--The table of sections for chapter 77 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

                              ``Sec. 7524. Taxpayer empowerment 
                                        form.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. BUDGET ACT COMPLIANCE WITH THE TAXPAYER EMPOWERMENT.

    (a) President's Budget.--Section 1105(f) of title 31, United States 
Code, is amended to read as follows:
    ``(f) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared in a manner consistent with--
            ``(1) the requirements of the Balanced Budget and Emergency 
        Deficit Control Act of 1985; and
            ``(2) the allocations reflected in the taxpayer empowerment 
        form contained in the report of the Secretary of the Treasury 
        submitted on November 1 of the year preceding the year in which 
        the budget is being submitted as required by section 7524(e) of 
        the Internal Revenue Code of 1986.''.
    (b) Congressional Budget.--Section 301(a)(4) of the Congressional 
Budget Act of 1974 is amended by striking ``based on'' through the 
semicolon and inserting the following: ``based on--
                    ``(A) allocations of the total levels set forth 
                pursuant to paragraph (1); and
                    ``(B) the allocations reflected in the taxpayer 
                empowerment form contained in the report of the 
                Secretary of the Treasury submitted on November 1 of 
                the year preceding the budget year as required by 
                section 7524(e) of the Internal Revenue Code of 
                1986;''.