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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4769 Introduced in House (IH)]

105th CONGRESS
  2d Session
                                H. R. 4769

  To require the Secretary of the Treasury to prepare a report on the 
 current Federal program costs, and Federal revenues, attributable to 
 the Commonwealth of Puerto Rico and on other matters relating to the 
       taxation of residents of the Commonwealth of Puerto Rico.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 9, 1998

 Mr. English of Pennsylvania introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
  To require the Secretary of the Treasury to prepare a report on the 
 current Federal program costs, and Federal revenues, attributable to 
 the Commonwealth of Puerto Rico and on other matters relating to the 
       taxation of residents of the Commonwealth of Puerto Rico.

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

SECTION 1. FISCAL EQUITY AND RESPONSIBILITY FOR PUERTO RICO.

    The Secretary of the Treasury shall prepare and submit to Congress 
a report which includes detailed information with respect to--
            (1) the cost of all current Federal programs, services, 
        benefits, entitlements, and activities in the Commonwealth of 
        Puerto Rico, separately indicating the cost of each major 
        category of Federal spending;
            (2) all revenues received into the Federal Treasury 
        collected in or attributable to the Commonwealth of Puerto 
        Rico;
            (3) the reliability and efficiency of current financial 
        management and budget execution processes involving 
        transactions between Federal and Commonwealth of Puerto Rico 
        fiscal systems;
            (4) measures which would be necessary or recommended in the 
        event Congress determines to introduce and phase-in over a 
        period of years Federal taxation for residents of the 
        Commonwealth of Puerto Rico on the same basis as in the States 
        of the Union, as well as the application of all additional 
        forms of Federal corporate taxation on the same basis as in the 
        States of the Union;
            (5) the operation of the current system of taxation in the 
        Commonwealth of Puerto Rico under local law, including 
        historical and current levels of revenue and allocation of such 
        revenues under local law, as well as adjustments in local tax 
        law and policy which would be necessary or appropriate in order 
        to facilitate introduction of Federal taxation in the event 
        Congress determines that integration of the Commonwealth of 
        Puerto Rico into the Federal fiscal system is in the national 
        interest; and
            (6) possible alternative forms of Federal taxation which 
        would result in the collection by the Internal Revenue Service 
        from individuals and corporations in the Commonwealth of Puerto 
        Rico of revenues which after a reasonable transition period 
        will equal or exceed the annual costs of the Federal Government 
        in the Commonwealth of Puerto Rico, including recommendations 
        regarding the feasibility of a gradual phase-in of Federal 
        taxes proportional to levels of income and Federal spending in 
        the Commonwealth of Puerto Rico relative to the nation as a 
        whole.
                                 <all>
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