I 

111TH CONGRESS 

2D SESSION H. R. 4646 

To establish a fee on transactions which would eliminate the national debt 

and replace the income tax on individuals. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 23, 2010 

Mr. FATTAH introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the 

Budget, Rules, and Appropriations, 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 establish a fee on transactions which would eliminate 

the national debt and replace the income tax on individuals. 

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 ‘‘Debt Free America 

5 Act’’. 

6 SEC. 2. FINDINGS; PURPOSES. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) The current tax structure creates economic 

9 distortions that limit growth and job creation. 


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1 (2) The estimated cost of compliance to tax2 payers is five billion hours and approximately $200 

3 billion. 

4 (3) Restructuring the tax code will promote eco5 nomic prosperity. 

6 (4) Replacing existing Federal taxes with a fee 

7 on transactions eliminates systemic inefficiency that 

8 plagues the current tax code. 

9 (5) The United States, from its beginning in 

10 1790 to the present, has been free of a national debt 

11 for only two years, 1834 and 1835. 

12 (6) The national debt has grown from $75.5 

13 million in 1790 to $5.8 trillion in 2008. 

14 (7) Expressed as a percentage of gross domestic 

15 product (GDP), the national debt reached a high of 

16 108.6 percent of GDP in 1946. 

17 (8) After 1946, the national debt as a percent18 age of GDP declined, reaching a low of 32.5 percent 

19 in 1981. 

20 (9) The large budget deficits of the 1980s and 

21 1990s reversed this trend and pushed the percentage 

22 to another high of 49.5 percent in 1993. 

23 (10) The Federal budget surpluses from fiscal 

24 year 1998 to fiscal year 2001 were used to retire a 

25 portion of the publicly held national debt. 


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1 (11) Between fiscal year 1997 and fiscal year 

2 2001, the publicly held portion of the national debt 

3 declined by more than $400 billion. 

4 (12) Since fiscal year 2002, a return to budget 

5 deficits has caused the debt to grow again. 

6 (b) PURPOSES.—The purpose of section 3 of this Act 

7 is to establish a fee on most transactions. Such fee— 

8 (1) is different than a sales tax in that a sales 

9 tax is charged only on sales to the final consumer 

10 and the transaction fee would apply to intermediate 

11 users as well as end users, 

12 (2) is different than a value added tax (VAT), 

13 commonly used in European and other countries, in 

14 that a VAT is imposed only on a portion of a trans15 action’s value (roughly the difference between an 

16 item’s selling price and it’s cost) and the transaction 

17 fee would apply to the entire amount of the trans18 action, and 

19 (3) is intended to raise sufficient revenue to 

20 eliminate the national debt, which was $10.6 trillion 

21 in January 2009, during a period of 7 years and to 

22 phase out the income tax on individuals. 


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1 SEC. 3. IMPLEMENTATION OF A TRANSACTION FEE. 

2 (a) IN GENERAL.—Subtitle D of the Internal Rev3 enue Code of 1986 is amended by inserting after chapter 

4 36 the following new chapter: 

5 ‘‘CHAPTER 37—TRANSACTION FEE 

‘‘Sec. 4501. Imposition of transaction fee. 

6 ‘‘SEC. 4501. IMPOSITION OF TRANSACTION FEE. 

7 ‘‘(a) IN GENERAL.—There is hereby imposed on 

8 every specified transaction a fee in an amount equal to 

9 1 percent of the amount of such transaction. 

10 ‘‘(b) SPECIFIED TRANSACTION.—For purposes of 

11 this chapter— 

12 ‘‘(1) IN GENERAL.—The term ‘specified trans13 action’ means any transaction that uses a payment 

14 instrument, including any check, cash, credit card, 

15 transfer of stock, bonds, or other financial instru16 ment. 

17 ‘‘(2) TRANSACTION.—The term ‘transaction’ in18 cludes retail and wholesale sales, purchases of inter19 mediate goods, and financial and intangible trans20 actions. 

21 ‘‘(c) LIABILITY FOR FEE.—Persons become liable for 

22 the fee at the moment the person exercises control over 

23 a piece of property or service, regardless of the payment 

24 method. 


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1 ‘‘(d) COLLECTION.—The fees will be collected by the 

2 seller or financial institution servicing the transaction and 

3 shall be paid over to the Secretary. In the case of a person 

4 who fails to collect and pay over the fee as required under 

5 this subsection, such person shall become liable for the fee 

6 not so collected and paid over. 

7 ‘‘(e) POTENTIAL EXCLUSIONS.—Subsection (a) shall 

8 not apply to transactions involving stock (and any options 

9 or derivatives with respect to stock) until— 

10 ‘‘(1) such time as the United States enters into 

11 an international agreement that regulates domestic 

12 and international stock exchanges, or 

13 ‘‘(2) the Secretary issues recommendations re14 garding the application of the fee as it applies to 

15 stock. 

16 ‘‘(f) REGULATIONS.—The Secretary shall issue such 

17 regulations or other guidance as may be necessary or ap18 propriate to carry out the purposes of this section, includ19 ing regulations or other guidance which require reporting 

20 of such information as the Secretary determines appro21 priate to prevent under reporting of the amounts on which 

22 a fee is imposed by this section.’’. 

23 (b) CLERICAL AMENDMENT.—The table of chapters 

24 for the Internal Revenue Code of 1986 is amended by inVerDate Nov 24 2008 07:01 Feb 24, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4646.IH H4646

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1 serting after the item relating to section 36 the following 

2 new item: 

‘‘CHAPTER 37. TRANSACTION FEE.’’. 

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

4 this section shall apply to transactions in calendar years 

5 beginning after the date of the enactment of this Act. 

6 SEC. 4. INCOME TAX CREDIT DURING PERIOD THAT TRANS7 ACTION FEE AND INDIVIDUAL INCOME TAX 

8 ARE IN EFFECT. 

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 is amended by inserting after section 25D the fol12 lowing new section: 

13 ‘‘SEC. 25E. CREDIT DURING PERIOD OF TRANSACTION FEE 

14 AND INDIVIDUAL INCOME TAX. 

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

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

17 by this chapter for the taxable year an amount equal to 

18 1 percent of the taxpayer’s adjusted gross income. 

19 ‘‘(b) PHASEOUT BASED ON ADJUSTED GROSS IN20 COME.—The credit allowed under subsection (a) for any 

21 taxable year shall be reduced (but not below zero) by an 

22 amount which bears the same ratio to the amount of such 

23 credit (determined without regard to this subsection) as— 

24 ‘‘(1) the excess (if any) of the taxpayer’s ad25 justed gross income for such taxable year over 


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1 $100,000 ($250,000 in the case of a joint return), 

2 bears to 

3 ‘‘(2) $10,000 ($20,000 in the case of a joint re4 turn).’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 for subpart A of part IV of subchapter A of chapter 1 

7 of such Code is amended by inserting after the item relat8 ing to section 25D the following new item: 

‘‘Sec. 25E. Credit during period of transaction fee and individual income tax.’’. 

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

10 this section shall apply to taxable years beginning during 

11 calendar years beginning after the date of the enactment 

12 of this Act. 

13 SEC. 5. ESTABLISHMENT OF TASK FORCE. 

14 (a) IN GENERAL.—Title III of the Congressional 

15 Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended 

16 by adding at the end the following new section: 

17 ‘‘ESTABLISHMENT OF TASK FORCE FOR RESPONSIBLE

18 FISCAL ACTION

19 ‘‘SEC. 316. (a) DEFINITIONS.—In this section: 

20 ‘‘(1) TASK FORCE.—The term ‘Task Force’ 

21 means the Bipartisan Task Force for Responsible 

22 Fiscal Action established under subsection (b)(1). 

23 ‘‘(2) TASK FORCE BILL.—The term ‘Task 

24 Force bill’ means a bill consisting of the proposed 

25 legislative language of the Task Force recommended 


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1 under subsection (b)(3)(B) and introduced under 

2 subsection (e)(1). 

3 ‘‘(3) FISCAL IMBALANCE.—The term ‘fiscal im4 balance’ means the gap between the projected reve5 nues and expenditures of the Federal Government. 

6 ‘‘(b) ESTABLISHMENT OF TASK FORCE.— 

7 ‘‘(1) ESTABLISHMENT.—There is established in 

8 the legislative branch a task force to be known as 

9 the ‘Bipartisan Task Force for Responsible Fiscal 

10 Action’. 

11 ‘‘(2) PURPOSES.— 

12 ‘‘(A) REVIEW.—The Task Force shall re13 view the fiscal imbalance of the Federal Govern14 ment, including— 

15 ‘‘(i) analyses of projected Federal ex16 penditures; 

17 ‘‘(ii) analyses of projected Federal 

18 revenues; and 

19 ‘‘(iii) analyses of the current and 

20 long-term actuarial financial condition of 

21 the Federal Government. 

22 ‘‘(B) IDENTIFY FACTORS.—The Task 

23 Force shall identify factors that affect the long24 term fiscal imbalance of the Federal Govern25 ment. 


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1 ‘‘(C) ANALYZE POTENTIAL COURSES OF

2 ACTION.—The Task Force shall analyze poten3 tial courses of action to address factors that af4 fect the long-term fiscal imbalance of the Fed5 eral Government. 

6 ‘‘(D) PROVIDE RECOMMENDATIONS AND

7 LEGISLATIVE LANGUAGE.—The Task Force 

8 shall provide recommendations and legislative 

9 language that will significantly improve the 

10 long-term fiscal imbalance of the Federal Gov11 ernment, including recommendations address12 ing— 

13 ‘‘(i) Federal expenditures; 

14 ‘‘(ii) Federal revenues; and 

15 ‘‘(iii) the current and long-term actu16 arial financial condition of the Federal 

17 Government. 

18 ‘‘(3) DUTIES.— 

19 ‘‘(A) IN GENERAL.—The Task Force shall 

20 address the Nation’s long-term fiscal imbal21 ances, consistent with the purposes described in 

22 paragraph (2), and shall submit the report and 

23 recommendations required under subparagraph 

24 (B). 


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1 ‘‘(B) REPORT, RECOMMENDATIONS, AND

2 LEGISLATIVE LANGUAGE.— 

3 ‘‘(i) IN GENERAL.—Not earlier than 

4 November 3, 2010, and not later than No5 vember 9, 2010, the Task Force shall vote 

6 on a report that contains— 

7 ‘‘(I) a detailed statement of the 

8 findings, conclusions, and rec9 ommendations of the Task Force; 

10 ‘‘(II) the assumptions, scenarios, 

11 and alternatives considered in reach12 ing such findings, conclusions, and 

13 recommendations; and 

14 ‘‘(III) proposed legislative lan15 guage to carry out such recommenda16 tions as described in paragraph 

17 (2)(D). 

18 ‘‘(ii) APPROVAL OF REPORT.—The re19 port of the Task Force submitted under 

20 clause (i) shall require the approval of not 

21 fewer than 14 of the 18 members of the 

22 Task Force. 

23 ‘‘(iii) ADDITIONAL VIEWS.—A member 

24 of the Task Force who gives notice of an 

25 intention to file supplemental, minority, or 


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1 additional views at the time of final Task 

2 Force approval of the report under clause 

3 (ii), shall be entitled to not less than 3 cal4 endar days in which to file such views in 

5 writing with the staff director of the Task 

6 Force. Such views shall then be included in 

7 the Task Force report and printed in the 

8 same volume, or part thereof, and their in9 clusion shall be noted on the cover of the 

10 report. In the absence of timely notice, the 

11 Task Force report may be printed and 

12 transmitted immediately without such 

13 views. 

14 ‘‘(iv) TRANSMISSION OF REPORT.—No 

15 later than November 15, 2010, the Task 

16 Force shall submit the Task Force bill and 

17 final report to the President, the Vice 

18 President, the Speaker of the House, and 

19 the majority and minority leaders of both 

20 Houses. 

21 ‘‘(v) REPORT TO BE MADE PUBLIC.— 

22 Upon the approval or disapproval of the 

23 Task Force report pursuant to clause (ii), 

24 the Task Force shall promptly make the 


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1 full report, and a record of the vote, avail2 able to the public. 

3 ‘‘(4) MEMBERSHIP.— 

4 ‘‘(A) IN GENERAL.—The Task Force shall 

5 be composed of 18 members designated pursu6 ant to subparagraph (B). 

7 ‘‘(B) DESIGNATION.—Members of the 

8 Task Force shall be designated as follows: 

9 ‘‘(i) The President shall designate 2 

10 members, one of whom shall be the Sec11 retary of the Treasury, and the other of 

12 whom shall be an officer of the executive 

13 branch. 

14 ‘‘(ii) The majority leader of the Sen15 ate shall designate 4 members from among 

16 Members of the Senate. 

17 ‘‘(iii) The minority leader of the Sen18 ate shall designate 4 members from among 

19 Members of the Senate. 

20 ‘‘(iv) The Speaker of the House of 

21 Representatives shall designate 4 members 

22 from among Members of the House of 

23 Representatives. 

24 ‘‘(v) The minority leader of the House 

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1 bers from among Members of the House of 

2 Representatives. 

3 ‘‘(C) CO-CHAIRS.— 

4 ‘‘(i) IN GENERAL.—There shall be 2 

5 Co-Chairs of the Task Force. The Presi6 dent, majority leader of the Senate, and 

7 Speaker of the House shall designate one 

8 Co-Chair among the members of the Task 

9 Force. The minority leader of the Senate 

10 and minority leader of the House shall des11 ignate the second Co-Chair among the 

12 members of the Task Force. The Co13 Chairs shall be appointed not later than 14 

14 days after the date of enactment of this 

15 section. 

16 ‘‘(ii) STAFF DIRECTOR.—The Co17 Chairs, acting jointly, shall hire the staff 

18 director of the Task Force. 

19 ‘‘(D) DATE.—Members of the Task Force 

20 shall be designated by not later than 14 days 

21 after the date of enactment of this section. 

22 ‘‘(E) PERIOD OF DESIGNATION.—Members 

23 shall be designated for the life of the Task 

24 Force. Any vacancy in the Task Force shall not 

25 affect its powers, but shall be filled not later 


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1 than 14 days after the date on which the va2 cancy occurs in the same manner as the origi3 nal designation. 

4 ‘‘(F) COMPENSATION.—Members of the 

5 Task Force shall serve without any additional 

6 compensation for their work on the Task Force. 

7 However, members may be allowed travel ex8 penses, including per diem in lieu of subsist9 ence, in accordance with sections 5702 and 

10 5703 of title 5, United States Code, while away 

11 from their homes or regular places of business 

12 in performance of services for the Task Force. 

13 ‘‘(5) ADMINISTRATION.— 

14 ‘‘(A) AUTHORITY TO ESTABLISH RULES

15 AND REGULATIONS.—The Co-Chairs, in con16 sultation with the other members of the Task 

17 Force, may establish rules and regulations for 

18 the conduct of Task Force business, if such 

19 rules and regulations are not inconsistent with 

20 this section or other applicable law. 

21 ‘‘(B) QUORUM.—Fourteen members of the 

22 Task Force shall constitute a quorum for pur23 poses of voting, meeting, and holding hearings. 

24 ‘‘(C) VOTING.— 


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1 ‘‘(i) PROXY VOTING.—No proxy voting 

2 shall be allowed on behalf of the members 

3 of the Task Force. 

4 ‘‘(ii) REPORT, RECOMMENDATIONS

5 AND LEGISLATIVE LANGUAGE.— 

6 ‘‘(I) DATES.—The Task Force 

7 may not vote on any version of the re8 port, recommendations, or legislative 

9 language before the timing provided 

10 for in paragraph (3)(B)(i). 

11 ‘‘(II) CONGRESSIONAL BUDGET

12 OFFICE AND JOINT COMMITTEE ON

13 TAXATION ESTIMATES.—The Congres14 sional Budget Office and Joint Com15 mittee on Taxation shall provide esti16 mates of the Task Force report and 

17 recommendations (as described in 

18 subsection (b)(2)(D)) in accordance 

19 with section 308(a) and 201(f) of the 

20 Congressional Budget Act of 1974. 

21 The Task Force may not vote on any 

22 version of the report, recommenda23 tions, or legislative language unless a 

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1 ation by all the members at least 72 

2 hours prior to the vote. 

3 ‘‘(D) HEARINGS.—The Task Force may, 

4 for the purpose of carrying out this section, 

5 hold such hearings, sit and act at such times 

6 and places, take such testimony, receive such 

7 evidence, and administer such oaths the Task 

8 Force considers advisable. 

9 ‘‘(c) EXPEDITED CONSIDERATION OF TASK FORCE

10 RECOMMENDATIONS.— 

11 ‘‘(1) INTRODUCTION.— 

12 ‘‘(A) RECONVENING.— 

13 ‘‘(i) IN THE HOUSE OF REPRESENTA14 TIVES.—Upon receipt of a report under 

15 subsection (b)(3)(B), the Speaker, if the 

16 House would otherwise be adjourned, shall 

17 notify the Members of the House that, 

18 pursuant to this section, the House shall 

19 convene not later than November 23, 

20 2010. 

21 ‘‘(ii) IN THE SENATE.— 

22 ‘‘(I) CONVENING.—Upon receipt 

23 of a report under subsection 

24 (b)(3)(B), if the Senate has adjourned 

25 or recessed for more than 2 days, the 


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1 majority leader of the Senate, after 

2 consultation with the minority leader 

3 of the Senate, shall notify the Mem4 bers of the Senate that, pursuant to 

5 this section, the Senate shall convene 

6 not later than November 23, 2010. 

7 ‘‘(II) ADJOURNING.—No concur8 rent resolution adjourning the Senate 

9 for more than 3 days shall be in order 

10 until the Senate votes on passage of 

11 the Task Force bill under paragraph 

12 (2)(B)(iv). 

13 ‘‘(B) INTRODUCTION OF TASK FORCE

14 BILL.—The proposed legislative language con15 tained in the report submitted pursuant to sub16 section (b)(3)(B), upon receipt by the Congress, 

17 shall be introduced not later than November 23, 

18 2010, in the Senate and in the House of Rep19 resentatives by the majority leader of each 

20 House of Congress, for himself, the minority 

21 leader of each House of Congress, for himself, 

22 or any member of the House designated by the 

23 majority leader or minority leader. If the Task 

24 Force bill is not introduced in accordance with 

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1 gress, then any Member of that House may in2 troduce the Task Force bill on any day there3 after. Upon introduction, the Task Force bill 

4 shall be referred to the appropriate committees 

5 under subparagraph (C). 

6 ‘‘(C) COMMITTEE CONSIDERATION.—A 

7 Task Force bill introduced in either House of 

8 Congress shall be jointly referred to the com9 mittee or committees of jurisdiction and the 

10 Committee on the Budget of that House, which 

11 committees shall report the bill without any re12 vision and with a favorable recommendation, an 

13 unfavorable recommendation, or without rec14 ommendation, not later than 7 calendar days 

15 after the date of introduction of the bill in that 

16 House, or the first day thereafter on which that 

17 House is in session. If any committee fails to 

18 report the bill within that period, that com19 mittee shall be automatically discharged from 

20 consideration of the bill, and the bill shall be 

21 placed on the appropriate calendar. 

22 ‘‘(2) EXPEDITED PROCEDURES.— 

23 ‘‘(A) FAST TRACK CONSIDERATION IN

24 HOUSE OF REPRESENTATIVES.— 


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1 ‘‘(i) PROCEEDING TO CONSIDER2 ATION.—It shall be in order, not later than 

3 2 days of session after the date on which 

4 a Task Force bill is reported or discharged 

5 from all committees to which it was re6 ferred, for the majority leader of the 

7 House of Representatives or the majority 

8 leader’s designee, to move to proceed to 

9 the consideration of the Task Force bill. It 

10 shall also be in order for any Member of 

11 the House of Representatives to move to 

12 proceed to the consideration of the Task 

13 Force bill at any time after the conclusion 

14 of such 2-day period. All points of order 

15 against the motion are waived. Such a mo16 tion shall not be in order after the House 

17 has disposed of a motion to proceed on the 

18 Task Force bill. The previous question 

19 shall be considered as ordered on the mo20 tion to its adoption without intervening 

21 motion. The motion shall not be debatable. 

22 A motion to reconsider the vote by which 

23 the motion is disposed of shall not be in 

24 order. 


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1 ‘‘(ii) CONSIDERATION.—The Task 

2 Force bill shall be considered as read. All 

3 points of order against the Task Force bill 

4 and against its consideration are waived. 

5 The previous question shall be considered 

6 as ordered on the Task Force bill to its 

7 passage without intervening motion except 

8 100 hours of debate equally divided and 

9 controlled by the proponent and an oppo10 nent, and any motion to limit debate. A 

11 motion to reconsider the vote on passage of 

12 the Task Force bill shall not be in order. 

13 ‘‘(iii) APPEALS.—Appeals from deci14 sions of the chair relating to the applica15 tion of the Rules of the House of Rep16 resentatives to the procedure relating to a 

17 Task Force bill shall be decided without 

18 debate. 

19 ‘‘(iv) APPLICATION OF HOUSE

20 RULES.—Except to the extent specifically 

21 provided in paragraph (2)(A), consider22 ation of a Task Force bill shall be gov23 erned by the Rules of the House of Rep24 resentatives. It shall not be in order in the 

25 House of Representatives to consider any 


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1 Task Force bill introduced pursuant to the 

2 provisions of this subsection under a sus3 pension of the rules pursuant to Clause 1 

4 of House Rule XV, or under a special rule 

5 reported by the House Committee on 

6 Rules. 

7 ‘‘(v) NO AMENDMENTS.—No amend8 ment to the Task Force bill shall be in 

9 order in the House of Representatives. 

10 ‘‘(vi) VOTE ON PASSAGE.—Imme11 diately following the conclusion of consider12 ation of the Task Force bill, the vote on 

13 passage of the Task Force bill shall occur 

14 without any intervening action or motion, 

15 requiring an affirmative vote of three-fifths 

16 of the Members, duly chosen and sworn. If 

17 the Task Force bill is passed, the Clerk of 

18 the House of Representatives shall cause 

19 the bill to be transmitted to the Senate be20 fore the close of the next day of session of 

21 the House. The vote on passage shall occur 

22 not later than December 23, 2010. 

23 ‘‘(vii) VOTE.—The House Committee 

24 on Rules may not report a rule or order 

25 that would have the effect of causing the 


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1 Task Force bill to be approved by a vote 

2 of less than three-fifths of the Members, 

3 duly chosen and sworn. 

4 ‘‘(B) FAST TRACK CONSIDERATION IN SEN5 ATE.— 

6 ‘‘(i) IN GENERAL.—Notwithstanding 

7 Rule XXII of the Standing Rules of the 

8 Senate, it is in order, not later than 2 days 

9 of session after the date on which a Task 

10 Force bill is reported or discharged from 

11 all committees to which it was referred, for 

12 the majority leader of the Senate or the 

13 majority leader’s designee to move to pro14 ceed to the consideration of the Task 

15 Force bill. It shall also be in order for any 

16 Member of the Senate to move to proceed 

17 to the consideration of the Task Force bill 

18 at any time after the conclusion of such 2- 

19 day period. A motion to proceed is in order 

20 even though a previous motion to the same 

21 effect has been disagreed to. All points of 

22 order against the motion to proceed to the 

23 Task Force bill are waived. The motion to 

24 proceed is not debatable. The motion is not 

25 subject to a motion to postpone. A motion 


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1 to reconsider the vote by which the motion 

2 is agreed to or disagreed to shall not be in 

3 order. If a motion to proceed to the consid4 eration of the Task Force bill is agreed to, 

5 the Task Force bill shall remain the unfin6 ished business until disposed of. 

7 ‘‘(ii) DEBATE.—All points of order 

8 against the Task Force bill and against 

9 consideration of the Task Force bill are 

10 waived. Consideration of the Task Force 

11 bill and of all debatable motions and ap12 peals in connection therewith shall not ex13 ceed a total of 100 hours. Debate shall be 

14 divided equally between the majority and 

15 minority leaders or their designees. A mo16 tion further to limit debate on the Task 

17 Force bill is in order, shall require an af18 firmative vote of three-fifths of the Mem19 bers duly chosen and sworn, and is not de20 batable. Any debatable motion or appeal is 

21 debatable for not to exceed 1 hour, to be 

22 divided equally between those favoring and 

23 those opposing the motion or appeal. All 

24 time used for consideration of the Task 

25 Force bill, including time used for quorum 


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1 calls and voting, shall be counted against 

2 the total 100 hours of consideration. 

3 ‘‘(iii) NO AMENDMENTS.—An amend4 ment to the Task Force bill, or a motion 

5 to postpone, or a motion to proceed to the 

6 consideration of other business, or a mo7 tion to recommit the Task Force bill, is 

8 not in order. 

9 ‘‘(iv) VOTE ON PASSAGE.—The vote 

10 on passage shall occur immediately fol11 lowing the conclusion of the debate on a 

12 Task Force bill, and a single quorum call 

13 at the conclusion of the debate if re14 quested. Passage shall require an affirma15 tive vote of three-fifths of the Members, 

16 duly chosen and sworn. The vote on pas17 sage shall occur not later than December 

18 23, 2010. 

19 ‘‘(v) ADJOURNMENT.—If, by Decem20 ber 23, 2010, either House has failed to 

21 adopt a motion to proceed to the Task 

22 Force bill, paragraph (1)(A)(ii)(II) shall 

23 not apply. 

24 ‘‘(vi) RULINGS OF THE CHAIR ON

25 PROCEDURE.—Appeals from the decisions 


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1 of the Chair relating to the application of 

2 the rules of the Senate, as the case may 

3 be, to the procedure relating to a Task 

4 Force bill shall be decided without debate. 

5 ‘‘(C) RULES TO COORDINATE ACTION WITH

6 OTHER HOUSE.— 

7 ‘‘(i) REFERRAL.—If, before the pas8 sage by 1 House of a Task Force bill of 

9 that House, that House receives from the 

10 other House a Task Force bill, then the 

11 Task Force bill of the other House shall 

12 not be referred to a committee and shall 

13 immediately be placed on the calendar. 

14 ‘‘(ii) PROCEDURE.—If the Senate re15 ceives the Task Force bill passed by the 

16 House of Representatives before the Sen17 ate has voted on passage of the Task 

18 Force bill— 

19 ‘‘(I) the procedure in the Senate 

20 shall be the same as if no Task Force 

21 bill had been received from House of 

22 Representatives; and 

23 ‘‘(II) the vote on passage in the 

24 Senate shall be on the Task Force bill 

25 of the House of Representatives. 


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1 ‘‘(iii) TREATMENT OF TASK FORCE

2 BILL OF OTHER HOUSE.—If 1 House fails 

3 to introduce or consider a Task Force bill 

4 under this section, the Task Force bill of 

5 the other House shall be entitled to expe6 dited floor procedures under this section. 

7 ‘‘(iv) TREATMENT OF COMPANION

8 MEASURES IN THE SENATE.—If following 

9 passage of the Task Force bill in the Sen10 ate, the Senate then receives the Task 

11 Force bill from the House of Representa12 tives, the House-passed Task Force bill 

13 shall not be debatable. The vote on passage 

14 of the Task Force bill in the Senate shall 

15 be considered to be the vote on passage of 

16 the Task Force bill received from the 

17 House of Representatives. 

18 ‘‘(v) VETOES.—If the President vetoes 

19 the Task Force bill, debate on a veto mes20 sage in the Senate under this section shall 

21 be 1 hour equally divided between the ma22 jority and minority leaders or their des23 ignees. 


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1 ‘‘(3) SUSPENSION.—No motion to suspend the 

2 application of this subsection shall be in order in the 

3 Senate or in the House of Representatives.’’. 

4 (b) FUNDING.—From the amounts appropriated or 

5 made available and remaining unobligated under division 

6 A (other than under title X of division A) of the American 

7 Recovery and Reinvestment Act of 2009 (Public Law 111– 

8 5), there is rescinded pro rata an aggregate amount equal 

9 to $9,000,000, which amount shall be made available with10 out need for further appropriation to the Bipartisan Task 

11 Force for Responsible Fiscal Action to carry out the pur12 poses of the Bipartisan Task Force for Responsible Fiscal 

13 Action, and which shall remain available through fiscal 

14 year 2011. Not later than 14 days after the date of enact15 ment of this section, the Director of the Office of Manage16 ment and Budget shall administer the rescission and make 

17 available such amount to the Bipartisan Task Force for 

18 Responsible Fiscal Action. 

19 SEC. 6. REPEAL OF INCOME TAX ON INDIVIDUALS. 

20 (a) IN GENERAL.—Chapter 1 of the Internal Rev21 enue Code of 1986 is amended by striking the following 

22 provisions: 

23 (1) Part I of subchapter A. 

24 (2) Subpart A of part IV of subchapter A. 

25 (3) Sections 31, 32, 35, 36, and 36A. 


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1 (b) REPEAL OF ALTERNATIVE MINIMUM TAX FOR

2 INDIVIDUALS.—Section 55 of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the following 

4 new subsection: 

5 ‘‘(f) EXEMPTION FOR NONCORPORATE TAX6 PAYERS.—The tentative minimum tax for any taxpayer 

7 other than a corporation shall be zero.’’. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2017. 

11 SEC. 7. PRIORITIZATION FOR REPAYMENT OF NATIONAL 

12 DEBT. 

13 To take into account the national security concerns 

14 of the United States, the Secretary of the Treasury, in 

15 consultation with the Secretary of State, shall prioritize 

16 the repayment of the national debt and shall take into ac17 count circumstances in which the Secretary of the Treas18 ury determines the early repayment of outstanding debt 

19 is detrimental to the fiscal stability of the United States. 

20 SEC. 8. STUDY AND REPORT. 

21 (a) STUDY.—The Secretary of the Treasury, in con22 sultation with the Chairman of the Federal Reserve, 

23 shall— 


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1 (1) analyze methods to prevent and relieve any 

2 distortions among economic sectors created by the 

3 implementation of this Act, 

4 (2) make recommendations regarding the appli5 cation of the transaction fee established under this 

6 Act to barter transactions which do not involve a 

7 payment instrument, 

8 (3) assess the transaction fee established under 

9 this Act as a tool of Federal fiscal policy, including 

10 an impact analysis on the elimination or retention of 

11 existing tax expenditures, incentives, penalties, and 

12 credits, including— 

13 (A) the earned income credit, 

14 (B) the alternative minimum tax, 

15 (C) the child tax credit, and 

16 (D) the deduction for mortgage interest, 

17 (4) analyze the extent to which the transaction 

18 fee could offset the cost to the Federal Government 

19 of increasing discretionary and mandatory spending, 

20 particularly expenditures related to education, de21 fense, Social Security, Medicare, and Medicaid, 

22 (5) make recommendations with respect to the 

23 Internal Revenue Service, which— 


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1 (A) assume the transition and 

2 grandfathering of all existing personnel of the 

3 Internal Revenue Service, 

4 (B) identify the elements of the current In5 ternal Revenue Service needed to administer the 

6 transaction fee, and 

7 (C) examine the feasibility of modifying 

8 the overall mission and jurisdiction of the Inter9 nal Revenue Service from one focused on tax 

10 law application to one focused on uncovering 

11 waste, fraud, and abuse throughout the Federal 

12 Government, and 

13 (6) make determinations and recommendations 

14 for methods of phasing out the income tax on indi15 viduals before its repeal under section 4 in a manner 

16 which is consistent with the purposes described in 

17 section 2(b)(3). 

18 (b) REPORT.—The Secretary of the Treasury shall, 

19 not later than 1 year after the date of the enactment of 

20 this Act, submit to Congress a written report containing 

21 the results, determinations, and recommendations of the 

22 Secretary under subsection (a). 

Æ 


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