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104TH CONGRESS

1ST SESSION H. R. 2526

To create a Creative Revenues Commission, to facilitate the reform of the

Federal tax system, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 24, 1995

Mr. OWENS introduced the following bill; which was referred to the Committee

on Ways and Means, and in addition to the Committee on Rules, 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 create a Creative Revenues Commission, to facilitate the

reform of the Federal tax system, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Creative Revenues Act

5 of 1995’’.

6 SEC. 2. CONGRESSIONAL FINDINGS.

7 The Congress finds that—
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1 (1) in 1943, corporations carried almost 40 per2 cent of the Federal tax burden while individuals car3 ried 27 percent;

4 (2) in 1995, corporations carry only 11.2 per5 cent of the Federal tax burden while individuals

6 carry 43.7 percent;

7 (3) despite this imbalance, corporations are

8 generating large profits while they streamline and

9 downsize at the expense of at least 500,000 Amer10 ican jobs each year;

11 (4) many proposals have been offered to reform

12 the Federal tax system, including a national sales

13 tax, a flat tax, a value-added tax, and a tax system

14 exempting savings from taxation;

15 (5) these proposals have merit and deserve to

16 be examined;

17 (6) nonetheless, none of these proposals address

18 the fact that the Nation’s tax burden has shifted

19 dramatically over the past 5 decades from the shoul20 ders of corporate America to the backs of American

21 workers;

22 (7) ways to correct this imbalance must be de23 veloped and implemented;

24 (8) for the first time in American history, me25 dian wages of full-time male workers have fallen for
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1 more than 2 decades, therefore making it necessary

2 to reduce taxes on wages; and for the first time in

3 American history, a majority of workers have suf4 fered real wage reductions while the per capita do5 mestic product has advanced;

6 (9) technology advances have created impor7 tant, potential new revenue sources, such as selling

8 or leasing the radiofrequency spectrum, which must

9 be thoroughly explored; and

10 (10) laws related to the sale of publicly owned

11 assets, such as land for mining, grazing, or other

12 purposes, also must be thoroughly explored.

13 SEC. 3. REVENUE REFORM.

14 (a) IMPLEMENTATION BY SECRETARY OF REGU15 LATORY REFORMS.—The Secretary of the Treasury shall

16 implement all revenue raising measures which—

17 (1) are recommended by the Creative Revenues

18 Commission in the report transmitted to the Sec19 retary under section 5(c)(1), and

20 (2) may be implemented under the regulatory

21 authority of the Secretary.

22 The Secretary shall complete the implementation of all

23 such measures not later than September 30, 2002, except

24 that no such measure may be initiated before January 1,

25 1999. Implementation of any revenue raising measures
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1 under this section shall include disseminating information

2 about such revenue raising measures to the public.

3 (b) IMPLEMENTATION OF NON-REGULATORY RE4 FORMS.—Legislation to implement the measures which

5 are recommended by the Commission in the report trans6 mitted under section 5(c)(1) and which may not be imple7 mented under the regulatory authority of the Secretary

8 shall be introduced and considered as provided in sections

9 9 and 10.

10 SEC. 4. CONDITIONS FOR REGULATORY REFORM.

11 (a) IN GENERAL.—The Secretary may not carry out

12 any revenue raising measure under this Act unless—

13 (1) not later than January 14, 1998, the Sec14 retary transmits to the Committee on Ways and

15 Means of the House of Representatives and the

16 Committee on Finance of the Senate a report con17 taining a statement that the Secretary has approved

18 and will implement all of the revenue raising meas19 ures which are recommended by the Commission in

20 the report transmitted under section 5(c)(1) and

21 which may be implemented under the regulatory au22 thority of the Secretary; and

23 (2) the Commission has recommended, in the

24 report transmitted under section 5(c)(1), the reve25 nue raising measure and has transmitted to the
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1 Committee on Ways and Means of the House of

2 Representatives and the Committee on Finance of

3 the Senate a copy of such report and the statement

4 required by section 5(c)(2).

5 (b) JOINT RESOLUTION.—The Secretary may not im6 plement any revenue raising measure recommended by the

7 Commission in the report transmitted under section

8 5(c)(1) if, within the 45-day period beginning on March

9 1, 1998, a joint resolution is enacted, in accordance with

10 the provisions of sections 8 and 10, disapproving the rec11 ommendations of the Commission. The days on which ei12 ther House of Congress is not in session because of an

13 adjournment of more than 3 days to a day certain shall

14 be excluded in the computation of such 45-day period.

15 SEC. 5. CREATIVE REVENUES COMMISSION.

16 (a) ESTABLISHMENT.—There is established the Sec17 retary of the Treasury’s Creative Revenues Commission.

18 (b) MEMBERSHIP.—The Commission shall consist of

19 11 members, appointed by the Secretary of Treasury, who

20 have broad experience in Government and in tax and reve21 nue issues. The Secretary shall designate 2 Chairpersons

22 from among the members of the Commission. The Sec23 retary shall appoint the members of the Commission not

24 later than 90 days after the date of the enactment of this

25 Act.
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1 (c) DUTIES.—

2 (1) REPORT.—The Commission shall transmit

3 to the Secretary, not later than December 31, 1997,

4 a report containing a description of—

5 (A) all revenue raising measures which the

6 Commission considered;

7 (B) the revenue raising measures which

8 the Commission recommends;

9 (C) the rationale of the Commission for

10 such recommendations; and

11 (D) the manner in which such rec12 ommendations, in the aggregate, if imple13 mented, would balance the Federal tax burden

14 equally between corporations and individuals.

15 (2) TRANSMISSION TO COMMITTEES.—The

16 Commission shall, on the same date on which the

17 Commission transmits the report to the Secretary

18 under subparagraph (A), transmit to the Committee

19 on Ways and Means of the House of Representatives

20 and the Committee on Finance of the Senate—

21 (A) a copy of such report; and

22 (B) a statement certifying that the Com23 mission has identified the revenue raising meas24 ures to be implemented by reviewing—
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1 (i) various forms of taxation that exist

2 in different countries;

3 (ii) other possible ways for the Fed4 eral Government to raise revenue; and

5 (iii) possible ways to balance the Fed6 eral tax burden equally between corpora7 tions and individuals.

8 (d) ADMINISTRATION.—

9 (1) Members of the Commission shall serve

10 without compensation for their work on the Commis11 sion, except that members who are not employees of

12 the United States (determined without regard to

13 service on the Commission) may be allowed travel

14 expenses, including per diem in lieu of subsistence,

15 as authorized under section 5703 of title 5, United

16 States Code, for persons serving intermittently in

17 the Government service, to the full extent funds are

18 available (subject to appropriations).

19 (2) The Secretary shall provide the Commission

20 with such administrative services, facilities, staff,

21 and other support services as may be necessary.

22 Subject to appropriations, any expenses of the Com23 mission shall be paid from such funds as may be

24 available to the Secretary.
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1 (3) Not more than one-half of the professional

2 staff of the Commission shall be individuals who

3 have been employed by the Department of the

4 Treasury during calendar year 1997 in any capacity

5 other than as an employee of the Commission.

6 (4) The Commission shall be in place and oper7 ating as soon as possible, shortly after which time

8 the Commission shall brief the Secretary on the

9 Commission’s plan of action.

10 (5) The report transmitted under subsection

11 (c)(1) shall include a recommendation for a revenue

12 raising measure only if such recommendation is ap13 proved by a vote of a majority of the members of the

14 Commission.

15 SEC. 6. REPORTS.

16 As part of each annual budget request for the De17 partment of the Treasury, the Secretary shall transmit to

18 the appropriate committees of the Congress—

19 (1) a schedule of the revenue raising measures

20 to be implemented under this Act in the fiscal year

21 for which the request is made;

22 (2) an estimate of the total expenditures re23 quired by each such revenue raising measure;

24 (3) an estimate of the Federal Government cost

25 savings to be achieved, or cost increases to be gen-
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1 erated, by each such revenue raising measure and of

2 the time period in which such savings or increases

3 are to be achieved or generated; and

4 (4) an estimate of the amounts of the increases

5 or decreases, in the amounts of Federal tax paid by

6 individual and corporate taxpayers of various in7 comes, to be generated or achieved by each such rev8 enue raising measure and of the time period in

9 which such increases or decreases are to be gen10 erated or achieved.

11 SEC. 7. FUNDING.

12 (a) ACCOUNT.—There is hereby established in the

13 Treasury of the United States an account to be known

14 as the ‘‘Department of the Treasury Revenue Reform Ac15 count’’, which shall be administered by the Secretary as

16 a single account.

17 (b) AMOUNTS DEPOSITED INTO ACCOUNT.—There

18 shall be deposited into the Account—

19 (1) funds authorized for and appropriated to

20 the Account with respect to fiscal year 1999 and fis21 cal years beginning thereafter; and

22 (2) any funds that the Secretary may, subject

23 to approval in an appropriation Act, transfer to the

24 Account from funds appropriated to the Department

25 of the Treasury for any purpose, except that such
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1 funds may be transferred only after the date on

2 which the Secretary transmits written notice of, and

3 justification for, such transfer to the appropriate

4 committees of the Congress.

5 (c) USE OF ACCOUNT FUNDS.—The Secretary may

6 use the funds in the Account only for the purposes of im7 plementing revenue raising measures under this Act.

8 (d) ANNUAL REPORTS.—Not later than 60 days after

9 the end of each fiscal year in which the Secretary carries

10 out activities under this Act, the Secretary shall transmit

11 a report to the appropriate committees of Congress of the

12 amount and nature of the deposits into, and the expendi13 tures from, the Account during such fiscal year and of

14 the amount and nature of other expenditures made by the

15 Secretary pursuant to implementation of revenue raising

16 measures under this Act during such fiscal year.

17 (e) TRANSFER OF UNOBLIGATED FUNDS.—Unobli18 gated funds which remain in the Account after September

19 30, 2002, shall be held in the Account until transferred

20 by law after the appropriate committees of the Congress

21 receive the report transmitted under subsection (f).

22 (f) FINAL REPORT.—Not later than November 30,

23 2002, the Secretary shall transmit to the appropriate com24 mittees of the Congress a report containing an accounting

25 of—
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1 (1) all of the funds deposited into and expended

2 from the Account or otherwise expended by the Sec3 retary under this Act; and

4 (2) any amount remaining in the Account.

5 SEC. 8. CONGRESSIONAL CONSIDERATION OF REGU6 LATORY REFORMS RECOMMENDED IN COM7 MISSION REPORT.

8 (a) TERMS OF RESOLUTION.—For purposes of sec9 tion 4(b), the term ‘‘joint resolution’’ means only a joint

10 resolution which is introduced before March 15, 1998,

11 and—

12 (1) which does not have a preamble;

13 (2) the matter after the resolving clause of

14 which is as follows: ‘‘That Congress disapproves the

15 recommendations of the Creative Revenues Commis16 sion established by the Secretary of the Treasury as

17 submitted to the Secretary of the Treasury on

18 llll’’, the blank space being appropriately

19 filled in; and

20 (3) the title of which is as follows: ‘‘Joint reso21 lution disapproving the recommendations of the Cre22 ative Revenues Commission.’’.

23 (b) REFERRAL.—A resolution described in subsection

24 (a) and introduced in the House of Representatives shall

25 be referred to the Committee on Ways and Means of the
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1 House. A resolution described in subsection (a) and intro2 duced in the Senate shall be referred to the Committee

3 on Finance of the Senate.

4 SEC. 9. CONGRESSIONAL CONSIDERATION OF NON-REGU5 LATORY REFORMS RECOMMENDED IN COM6 MISSION REPORT.

7 (a) INTRODUCTION.—Not later than March 14, 1998,

8 the Speaker of the House of Representatives and the

9 President pro tempore of the Senate shall introduce, in

10 their respective houses, legislation to implement the meas11 ures which are recommended in the report transmitted

12 under section 5(c)(1) and which may not be implemented

13 by regulatory action.

14 (b) REFERRAL.—Legislation described in subsection

15 (a) and introduced in the House of Representatives shall

16 be referred to the Committee on Ways and Means of the

17 House. Legislation described in subsection (a) and intro18 duced in the Senate shall be referred to the Committee

19 on Finance of the Senate.

20 SEC. 10. PROCEDURE FOR CONSIDERATION.

21 (a) DISCHARGE.—If the committee to which reform

22 legislation is referred has not reported such reform legisla23 tion (or identical legislation) before March 15, 1998, such

24 committee shall be, as of March 15, 1998, discharged from

25 further consideration of such reform legislation, and such
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1 reform legislation shall be placed on the appropriate cal2 endar of the House involved.

3 (b) CONSIDERATION.—

4 (1) On or after the third day after the date on

5 which the committee to which such reform legisla6 tion is referred has reported, or has been discharged

7 (under subsection (a)) from further consideration of,

8 such reform legislation, it is in order (even though

9 a previous motion to the same effect has been dis10 agreed to) for any Member of the respective House

11 to move to proceed to the consideration of such re12 form legislation (but only on the day after the cal13 endar day on which such Member announces to the

14 House concerned the Member’s intention to do so).

15 All points of order against such reform legislation

16 (and against consideration of such reform legisla17 tion) are waived. The motion is highly privileged in

18 the House of Representatives and is privileged in the

19 Senate and is not debatable. The motion is not sub20 ject to amendment, or to a motion to postpone, or

21 to a motion to proceed to the consideration of other

22 business. A motion to reconsider the vote by which

23 the motion is agreed to or disagreed to shall not be

24 in order. If a motion to proceed to the consideration

25 of such reform legislation is agreed to, the respective
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1 House shall immediately proceed to consideration of

2 such reform legislation without intervening motion,

3 order, or other business, and such reform legislation

4 shall remain the unfinished business of the respec5 tive House until disposed of.

6 (2) Debate on such reform legislation, and on

7 all debatable motions and appeals in connection

8 therewith, shall be limited to not more than 10

9 hours, which shall be divided equally between those

10 favoring and those opposing such reform legislation.

11 An amendment to such reform legislation is not in

12 order. A motion further to limit debate is in order

13 and not debatable. A motion to postpone, or a mo14 tion to proceed to the consideration of other busi15 ness, or a motion to recommit such reform legisla16 tion is not in order. A motion to reconsider the vote

17 by which such reform legislation is agreed to or dis18 agreed to is not in order.

19 (3) Immediately following the conclusion of the

20 debate on such reform legislation, and a single

21 quorum call at the conclusion of the debate if re22 quested in accordance with the rules of the appro23 priate House, the vote on final passage of such re24 form legislation shall occur.
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1 (4) Appeals from the decisions of the Chair re2 lating to the application of the rules of the Senate

3 or the House of Representatives, as the case may be,

4 to the procedure relating to such reform legislation

5 shall be decided without debate.

6 (c) CONSIDERATION BY OTHER HOUSE.—

7 (1) If, before the passage by one House of re8 form legislation, that House receives from the other

9 House such a reform legislation, then the following

10 procedures shall apply:

11 (A) Such reform legislation of the other

12 House shall not be referred to a committee and

13 may not be considered in the House receiving it

14 except in the case of final passage as provided

15 in subparagraph (B)(ii).

16 (B) With respect to such reform legislation

17 of the House receiving the reform legislation—

18 (i) the procedure in that House shall

19 be the same as if such reform legislation

20 had not been received from the other

21 House; but

22 (ii) the vote on final passage shall be

23 on such reform legislation of the other

24 House.
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1 (2) Upon disposition of the reform legislation

2 received from the other House, it shall no longer be

3 in order to consider such reform legislation that

4 originated in the receiving House.

5 (d) RULES OF THE SENATE AND HOUSE.—This sec6 tion, and sections 8 and 9, are enacted by the Congress—

7 (1) as an exercise of the rulemaking power of

8 the Senate and House of Representatives, respec9 tively, and as such are deemed a part of the rules

10 of each House, respectively, but are applicable only

11 with respect to the procedure to be followed in that

12 House in the case of a reform legislation, and super13 sede other rules only to the extent inconsistent with

14 such rules; and

15 (2) with full recognition of the constitutional

16 right of either House to change the rules (so far as

17 relating to the procedure of that House) at any time

18 in the same manner, and to the same extent, as in

19 the case of any other rule of that House.

20 SEC. 11. DEFINITIONS.

21 For purposes of this Act:

22 (1) ACCOUNT.—The term ‘‘Account’’ means the

23 Department of the Treasury Revenue Reform Ac24 count established by section 7(a).
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1 (2) APPROPRIATE COMMITTEES OF CON2 GRESS.—The term ‘‘appropriate committees of Con3 gress’’ means the Committee on Ways and Means of

4 the House, the Committee on Finance of the Senate,

5 and the Committees on Appropriations of the House

6 and Senate.

7 (3) CREATIVE REVENUES COMMISSION; COMMIS8 SION.—The terms ‘‘Creative Revenues Commission’’

9 and ‘‘Commission’’ mean the Secretary of the Treas10 ury’s Creative Revenues Commission established by

11 section 5.

12 (4) REFORM LEGISLATION.—The term ‘‘reform

13 legislation’’ means a resolution described in section

14 8(a) or legislation described in section 9(a).

15 (5) REVENUE RAISING MEASURE.—The term

16 ‘‘revenue raising measure’’ means a proposal to

17 amend the Internal Revenue Code of 1986, a pro18 posal to implement a regulatory change to enforce19 ment or interpretation of such Code, or any other

20 proposal to raise revenue for the Federal Govern21 ment.

22 (6) SECRETARY.—The term ‘‘Secretary’’ means

23 the Secretary of the Treasury.

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