I 

110TH CONGRESS 

2D SESSION H. R. 5316 

To amend the Internal Revenue Code of 1986 to provide recovery rebates 

to certain individuals receiving Social Security or certain veterans benefits. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 7, 2008 

Mr. WALZ of Minnesota 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 

recovery rebates to certain individuals receiving Social 

Security or certain veterans benefits. 

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 ‘‘Universal Economic 

5 Stimulus Act of 2008’’. 


smartinez on PRODPC61 with BILLS
2 

•HR 5316 IH

1 SEC. 2. 2008 RECOVERY REBATES FOR CERTAIN INDIVID2 UALS RECEIVING SOCIAL SECURITY OR CER3 TAIN VETERANS BENEFITS. 

4 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new section: 

7 ‘‘SEC. 6431. 2008 RECOVERY REBATES FOR CERTAIN INDI8 VIDUALS RECEIVING SOCIAL SECURITY OR 

9 CERTAIN VETERANS BENEFITS. 

10 ‘‘(a) IN GENERAL.—In the case of an eligible indi11 vidual who is an eligible social security or veterans benefit 

12 recipient, there shall be allowed as a credit against the 

13 tax imposed by subtitle A for the first taxable year begin14 ning in 2008 an amount equal $300 ($600 in the case 

15 of a joint return). 

16 ‘‘(b) TREATMENT OF CREDIT.—The credit allowed by 

17 subsection (a) shall be treated as allowed by subpart C 

18 of part IV of subchapter A of chapter 1. 

19 ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN20 COME.—The amount of the credit allowed by subsection 

21 (a) (determined without regard to this subsection and sub22 section (f)) shall be reduced (but not below zero) by 5 per23 cent of so much of the taxpayer’s adjusted gross income 

24 as exceeds $75,000 ($150,000 in the case of a joint re25 turn). 


smartinez on PRODPC61 with BILLS
3 

•HR 5316 IH

1 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur2 poses of this section— 

3 ‘‘(1) ELIGIBLE SOCIAL SECURITY OR VETERANS

4 BENEFIT RECIPIENT.—The term ‘eligible social secu5 rity or veterans benefit recipient’ means, with re6 spect to any taxable year, any taxpayer who— 

7 ‘‘(A) received, during such taxable year— 

8 ‘‘(i) a social security benefit (as de9 fined in section 86(d)), 

10 ‘‘(ii) or any compensation or pension 

11 received under chapter 11, 13, or 15 of 

12 title 38, United States Code, and 

13 ‘‘(B) has earned income which is less than 

14 $3,000. 

15 ‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

16 individual’ means any individual other than— 

17 ‘‘(A) any nonresident alien individual, 

18 ‘‘(B) any individual with respect to whom 

19 a deduction under section 151 is allowable to 

20 another taxpayer for a taxable year beginning 

21 in the calendar year in which the individual’s 

22 taxable year begins, and 

23 ‘‘(C) an estate or trust. 


smartinez on PRODPC61 with BILLS
4 

•HR 5316 IH

1 ‘‘(3) EARNED INCOME.—The term ‘earned in2 come’ has the meaning set forth in section 32(c)(2) 

3 except that— 

4 ‘‘(A) subclause (II) of subparagraph 

5 (B)(vi) thereof shall be applied by substituting 

6 ‘January 1, 2009’ for ‘January 1, 2008’, and 

7 ‘‘(B) such term shall not include net earn8 ings from self-employment which are not taken 

9 into account in computing taxable income. 

10 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF

11 CREDIT.— 

12 ‘‘(1) IN GENERAL.—The amount of credit 

13 which would (but for this paragraph) be allowable 

14 under this section shall be reduced (but not below 

15 zero) by the aggregate refunds and credits made or 

16 allowed to the taxpayer under subsection (f). Any 

17 failure to so reduce the credit shall be treated as 

18 arising out of a mathematical or clerical error and 

19 assessed according to section 6213(b)(1). 

20 ‘‘(2) JOINT RETURNS.—In the case of a refund 

21 or credit made or allowed under subsection (f) with 

22 respect to a joint return, half of such refund or cred23 it shall be treated as having been made or allowed 

24 to each individual filing such return. 

25 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 


smartinez on PRODPC61 with BILLS
5 

•HR 5316 IH

1 ‘‘(1) IN GENERAL.—Each individual who was 

2 an eligible individual for such individual’s first tax3 able year beginning in 2007 shall be treated as hav4 ing made a payment against the tax imposed by 

5 chapter 1 for such first taxable year in an amount 

6 equal to the advance refund amount for such taxable 

7 year. 

8 ‘‘(2) ADVANCE REFUND AMOUNT.—For pur9 poses of paragraph (1), the advance refund amount 

10 is the amount that would have been allowed as a 

11 credit under this section for such first taxable year 

12 if this section (other than subsection (e) and this 

13 subsection) had applied to such taxable year. 

14 ‘‘(3) TIMING OF PAYMENTS.—The Secretary 

15 shall, subject to the provisions of this title, refund 

16 or credit any overpayment attributable to this sec17 tion as rapidly as possible. No refund or credit shall 

18 be made or allowed under this subsection after De19 cember 31, 2008. 

20 ‘‘(4) NO INTEREST.—No interest shall be al21 lowed on any overpayment attributable to this sec22 tion.’’. 

23 (b) TREATMENT OF POSSESSIONS.— 

24 (1) MIRROR CODE POSSESSION.—The Secretary 

25 of the Treasury shall make a payment to each posVerDate Aug 31 2005 05:18 Feb 09, 2008 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5316.IH H5316

smartinez on PRODPC61 with BILLS
6 

•HR 5316 IH

1 session of the United States with a mirror code tax 

2 system in an amount equal to the loss to that pos3 session by reason of the amendments made by this 

4 section. Such amount shall be determined by the 

5 Secretary of the Treasury based on information pro6 vided by the government of the respective possession. 

7 (2) OTHER POSSESSIONS.—The Secretary of 

8 the Treasury shall make a payment to each posses9 sion of the United States which does not have a mir10 ror code tax system in an amount estimated by the 

11 Secretary of the Treasury as being equal to the ag12 gregate benefits that would have been provided to 

13 residents of such possession by reason of the amend14 ments made by this section if a mirror code tax sys15 tem had been in effect in such possession. The pre16 ceding sentence shall not apply with respect to any 

17 possession of the United States unless such posses18 sion has a plan, which has been approved by the 

19 Secretary of the Treasury, under which such posses20 sion will promptly distribute such payment to the 

21 residents of such possession. 

22 (3) DEFINITIONS AND SPECIAL RULES.— 

23 (A) POSSESSION OF THE UNITED

24 STATES.—For purposes of this subsection, the 

25 term ‘‘possession of the United States’’ includes 


smartinez on PRODPC61 with BILLS
7 

•HR 5316 IH

1 the Commonwealth of Puerto Rico and the 

2 Commonwealth of the Northern Mariana Is3 lands. 

4 (B) MIRROR CODE TAX SYSTEM.—For pur5 poses of this subsection, the term ‘‘mirror code 

6 tax system’’ means, with respect to any posses7 sion of the United States, the income tax sys8 tem of such possession if the income tax liabil9 ity of the residents of such possession under 

10 such system is determined by reference to the 

11 income tax laws of the United States as if such 

12 possession were the United States. 

13 (C) TREATMENT OF PAYMENTS.—For pur14 poses of section 1324(b)(2) of title 31, United 

15 States Code, the payments under this sub16 section shall be treated in the same manner as 

17 a refund due from the credit allowed under sec18 tion 6431 of the Internal Revenue Code of 1986 

19 (as added by this section). 

20 (c) CONFORMING AMENDMENTS.— 

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

22 31, United States Code, is amended by inserting ‘‘or 

23 6431’’ after ‘‘section 35’’. 

24 (2) The table of contents for subchapter B of 

25 chapter 65 of the Internal Revenue Code of 1986 is 


smartinez on PRODPC61 with BILLS
8 

•HR 5316 IH

1 amended by adding at the end the following new 

2 item: 

‘‘Sec. 6431. 2008 recovery rebates for certain individuals receiving social security or certain veterans benefits.’’. 

Æ 


smartinez on PRODPC61 with BILLS