I 
108TH CONGRESS 
2D SESSION 
H. R. 3784
To amend the Internal Revenue Code of 1986 to provide for refunds to 
taxpayers of the budget surplus for each year of surplus. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2004
Mr. CANTOR (for himself and Mr. DOOLITTLE) 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 
for refunds to taxpayers of the budget surplus for each 
year of surplus.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer Rebate and 
Responsibility Act’’. 
SEC. 2. REFUND OF CERTAIN BUDGET SURPLUS AMOUNTS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 (relating to abatements, 
credits, and refunds) is amended by adding at the end the 
following new section:
‘‘SEC. 6429. REFUND OF BUDGET SURPLUS AMOUNTS. 
‘‘(a) IN GENERAL.—Each individual who was an eli-
gible individual for such individual’s first taxable year be-
ginning in the calendar year in which a surplus year be-
gins shall be treated as having made a payment against 
the tax imposed by chapter 1 for such first taxable year 
in an amount equal to the lesser of—
‘‘(1) the taxpayer’s allocable portion of the re-
fund amount for such taxable year, or 
‘‘(2) the taxpayer’s limitation amount for such 
taxable year. 
‘‘(b) TIMING OF PAYMENTS.—In the case of any 
overpayment attributable to this section, the Secretary 
shall, subject to the provisions of this title, refund or cred-
it such overpayment as rapidly as possible. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means any individual other than—
‘‘(A) any estate or trust, 
‘‘(B) any nonresident alien individual, and 
‘‘(C) any individual with respect to whom 
a deduction under section 151 is allowable to 
another taxpayer for a taxable year beginning 
in the calendar year in which the individual’s 
taxable year begins.
‘‘(2) SURPLUS YEAR.—The term ‘surplus year’ 
means a fiscal year for which the Director of the Of-
fice of Management and Budget certifies to the 
President and the Congress after the close of such 
year that there is a surplus in the budget of the 
United States for such fiscal year and the amount 
of such surplus, determined without regard to the 
income and expenditures of the Federal Old-Age and 
Survivors Insurance Trust Fund, the Federal Dis-
ability Insurance Trust Fund, and the Federal Hos-
pital Insurance Trust Fund. Such term shall not in-
clude any year if the Secretary determines that the 
cost of carrying out this section with respect to such 
year would exceed the refund amount for such year. 
‘‘(3) REFUND AMOUNT.—
‘‘(A) IN
GENERAL.—The term ‘refund 
amount’ means with respect to a surplus year, 
the applicable percentage of the amount of the 
surplus certified under paragraph (2) for that 
year. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—The 
term ‘applicable percentage’ means such per-
centage as the Secretary may determine with 
respect to any surplus year, except that such
percentage shall not be less than 50 percent nor 
more than 100 percent. 
‘‘(4) TAXPAYER’S ALLOCABLE PORTION OF THE 
REFUND AMOUNT.—A taxpayer’s allocable portion of 
the refund amount is the portion of the refund 
amount determined by the Secretary to be the 
amount which bears the same ratio to the tax paid 
by the taxpayer under subtitle A for the taxpayer’s 
first taxable year beginning in the calendar year in 
which the surplus year begins as the total amount 
of taxes imposed under subtitle A on all eligible indi-
viduals for such taxable year bears to the total 
amount of the refund amount for the surplus year. 
‘‘(5) LIMITATION AMOUNT.—The term ‘limita-
tion amount’ means, with respect to any taxable 
year, the excess (if any) of—
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) for such taxable 
year plus the tax imposed by section 55 for 
such taxable year, over 
‘‘(B) the sum of the credits allowable 
under part IV of subchapter A of chapter 1 
(other than the credits allowable under subpart 
C thereof, relating to refundable credits) for 
such taxable year.
‘‘(d) SPECIAL RULES.—
‘‘(1) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sec-
tion. 
‘‘(2) JOINT RETURNS.—In the case of a refund 
or credit made or allowed under this section with re-
spect to a joint return, half of such refund or credit 
shall be treated as having been made or allowed to 
each individual filing such return.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 65 is amended by adding at 
the end the following new item:
‘‘6429. Refund of budget surplus amounts.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act.
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