I 

109TH CONGRESS 

2D SESSION H. R. 5257 

To amend the Internal Revenue Code of 1986 to provide a basic income 

guarantee in the form of a refundable tax credit for taxpayers who 

do not itemize deductions. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 2, 2006 

Mr. FILNER introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a basic income guarantee in the form of a refundable 

tax credit for taxpayers who do not itemize deductions. 

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 Cut for the Rest 

5 of Us Act of 2006’’. 

6 SEC. 2. BASIC INCOME GUARANTEE FOR TAXPAYERS WHO 

7 DO NOT ITEMIZE DEDUCTIONS. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 (relating to refundable credits) is amended by redes2 ignating section 36 as section 37 and inserting after sec3 tion 35 the following new section: 

4 ‘‘SEC. 36. BASIC INCOME GUARANTEE FOR TAXPAYERS WHO 

5 DO NOT ITEMIZE DEDUCTIONS. 

6 ‘‘(a) IN GENERAL.—In the case of an individual, 

7 there shall be allowed as a credit against the tax imposed 

8 by this subtitle for the taxable year an amount equal to 

9 the basic income guarantee amount. 

10 ‘‘(b) BASIC GUARANTEE AMOUNT.—For purposes of 

11 this section, the term ‘basic guarantee amount’ means the 

12 sum of— 

13 ‘‘(1) $2,000 for the taxpayer, 

14 ‘‘(2) $2,000 for the spouse of the taxpayer, and 

15 ‘‘(3) $1,000 for each qualified dependent of the 

16 taxpayer. 

17 ‘‘(c) CREDIT ONLY ALLOWED TO TAXPAYERS WHO

18 DO NOT ITEMIZE DEDUCTIONS FOR TAXABLE YEAR.— 

19 A credit shall be allowed under subsection (a) for a taxable 

20 year only if the taxpayer does not claim itemized deduc21 tions (as defined by section 63(d)) on his return of tax 

22 for the taxable year. 

23 ‘‘(d) DEFINITIONS.—For purposes of this section, the 

24 term ‘qualified dependent’ means a dependent of the tax25 payer who has not attained the age of 19 as of the close 


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1 of the taxable year in which the taxable year of the tax2 payer begins. 

3 ‘‘(e) SPECIAL RULES.—For purposes of this sec4 tion— 

5 ‘‘(1) BASIC STANDARD DEDUCTION DIS6 ALLOWED.—If a credit is allowed to the taxpayer 

7 under subsection (a) for the taxable year, the basic 

8 standard deduction (as defined by section 63(c)(2) 

9 for such taxable year is zero. 

10 ‘‘(2) DEDUCTION FOR PERSONAL EXEMPTION

11 AMOUNT DISALLOWED.—If a credit is allowed to the 

12 taxpayer under subsection (a) for the taxable year, 

13 the exemption amount (as determined under section 

14 151) for each exemption of the taxpayer shall be 

15 zero. 

16 ‘‘(3) TREATMENT IF DEPENDENT OF ANOTHER

17 TAXPAYER.—If a deduction under section 151 with 

18 respect to an individual is allowed to another tax19 payer for a taxable year beginning in the calendar 

20 year in which such individual’s taxable year begins, 

21 no credit shall be allowed under subsection (a) to 

22 such individual for such individual’s taxable year. 

23 ‘‘(f) ADJUSTMENTS FOR INFLATION.—In the case of 

24 any taxable year beginning after December 31, 2006, each 


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1 dollar amount in subsection (b) shall be increased by an 

2 amount equal to— 

3 ‘‘(2) such dollar amount, multiplied by 

4 ‘‘(3) the cost-of-living adjustment determined 

5 under section 1(f)(3) for such calendar year by sub6 stituting ‘calendar year 2005’ for ‘calendar year 

7 1992’ in subparagraph (B) thereof. 

8 If any increase determined under paragraph (2) is not a 

9 multiple of $50, such increase shall be rounded to the next 

10 lowest multiple of $50. 

11 ‘‘(g) ELECTION NOT TO TAKE CREDIT.—No credit 

12 shall be allowed under subsection (a) for a taxable year 

13 if the taxpayer elects not to have this section apply for 

14 such taxable year.’’. 

15 (b) CONFORMING AND CLERICAL AMENDMENTS.— 

16 (1) Paragraph (2) of section 1324(b) of title 

17 31, United States Code, is amended by inserting be18 fore the period ‘‘, or from section 36 of such Code’’. 

19 (2) The table of sections for subpart C of part 

20 IV of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by redesignating the item relating 

22 to section 36 as an item relating to section 37 and 

23 by inserting after the item relating to section 35 the 

24 following new item: 

‘‘Sec. 36. Basic income guarantee for taxpayers who do not itemize deductions.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2005. 

Æ 


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