II

104TH CONGRESS

2D SESSION S. 1667

To change the date on which individual Federal income tax returns must

be filed to the nation’s Tax Freedom Day, or the day on which the

country’s citizens no longer work to pay taxes, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 15, 1996

Mr. GREGG introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To change the date on which individual Federal income tax

returns must be filed to the nation’s Tax Freedom Day,

or the day on which the country’s citizens no longer

work to pay taxes, 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 ‘‘Tax Filing On Tax

5 Freedom Day Act of 1996’’.

6 SEC. 2. TAX FILING ON TAX FREEDOM DAY.

7 (a) IN GENERAL.—Each year, in time to be included

8 in the instruction and information booklets that accom-
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1 pany the year’s individual income tax returns, the Sec2 retary of the Treasury (in this Act referred to as the ‘‘Sec3 retary’’) shall determine the year’s Tax Freedom Day pur4 suant to subsection (d).

5 (b) DUE DATE FOR TAXES.—Notwithstanding any

6 other provision of law, Federal individual income tax re7 turns for each year shall be due on the date of the Tax

8 Freedom Day in the subsequent year (rather than April

9 15th).

10 (c) INFORMATION PROVIDED.—The Secretary shall

11 include in the instruction and information booklets a

12 prominent section that provides the following information

13 with respect to the Tax Freedom Day:

14 (1) An explanation of Tax Freedom Day and

15 what it signifies.

16 (2) A statement that Congress provided for

17 Federal individual income tax returns to be due on

18 Tax Freedom Day to emphasize how long the aver19 age citizen works to pay government taxes.

20 (3) During leap years, a note that the year’s

21 Tax Freedom Day appears one calendar day earlier

22 than normal.

23 (4) A chart showing how the Tax Freedom

24 Day’s date has changed over time.
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1 (5) Information on the State and Federal com2 ponents of the total tax burden, and how the Tax

3 Freedom Day would differ on a State-by-State basis.

4 (d) DETERMINATION OF TAX FREEDOM DAY.—Each

5 year, the Secretary shall determine the Tax Freedom Day

6 as follows:

7 (1) TAX FOUNDATION.—By contacting and re8 ceiving the date from the Tax Foundation (which

9 has been determining and publishing a Tax Freedom

10 Day since 1973), in time to meet the informational

11 requirements of subsection (c), as long as the Tax

12 Foundation maintains its—

13 (A) status as a non-profit, non-partisan re14 search and public education organization;

15 (B) consistent method of analysis with re16 spect to determining Tax Freedom Day (unless

17 a change results in a demonstrably much more

18 accurate determination); and

19 (C) trademark on Tax Freedom Day.

20 (2) REQUIREMENTS NOT MET.—If the Tax

21 Foundation—

22 (A) fails to maintain any of the require23 ments described in paragraph (1), or
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1 (B) does not provide such information to

2 the Secretary in a timely manner after the Sec3 retary’s request for the information;

4 then the Secretary shall determine the year’s Tax

5 Freedom Day in accordance with paragraph (3):

6 (3) DETERMINATION BY THE SECRETARY.—If

7 either subparagraph (A) or (B) of paragraph (2) are

8 met, then the Secretary shall determine the year’s

9 Tax Freedom Day—

10 (A) by assuming that income is earned

11 evenly throughout the year and that individuals

12 initially devote all of their earnings to paying

13 income taxes;

14 (B) by calculating an effective tax rate for

15 the nation, by dividing the per capita income

16 tax burden (including Federal, State and local

17 taxes) by per capita income (using the net na18 tional product, a component of the national in19 come product accounts, as compiled annually by

20 the Bureau of Economic Analysis of the De21 partment of Commerce);

22 (C) by multiplying the effective tax rate

23 determined in subparagraph (B) by the number

24 of days in the year; and
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1 (D) by ensuring that a consistent meth2 odology is utilized from year-to-year, and alter3 ing the existing methodology only if the new

4 methodology is demonstrably much more accu5 rate.

6 The resultant total shall signify the number of

7 days the average citizen devotes to paying taxes, and

8 the corresponding calendar day shall be the Tax

9 Freedom Day.

10 SEC. 3. EFFECTIVE DATE AND SECRETARIAL SUBMISSION.

11 (a) EFFECTIVE DATE.—This Act shall take effect for

12 taxable years beginning after December 31, 1996.

13 (b) SECRETARIAL SUBMISSION.—Not later than 90

14 days after the date of the enactment of this Act, the Sec15 retary shall submit to the appropriate committees of the

16 Congress a legislative proposal providing for such tech17 nical and conforming amendments in the law as are re18 quired by the provisions of this Act.

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