(as shown in his return) allowable under part IV of sub-
chapter A of chapter 1 (other than subpart C thereof). 
‘‘(c) MANNER AND TIME OF DESIGNATION.—Rules 
similar to the rules of section 6096(c) shall apply for pur-
poses of this section, except that the designation shall be 
accompanied by the following statement: ‘The Federal 
budget will be reduced by an amount equal to ten times 
the amount you elect in the box.’. 
‘‘(d) AMOUNT INCREASE.—In the case of each tax-
able year beginning after 2011, the maximum dollar 
amount that may be designated under subsection (a) shall 
be increased by $1. In the case of a joint return of hus-
band and wife, such amount shall increase by $2 each tax-
able year.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 61 of such Code is amended by 
adding at the end the following new item: 
‘‘PART IX—DESIGNATION OF INCOME TAX PAYMENTS TO REDUCE THE 
DEFICIT.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 3. TAXPAYER-GENERATED SEQUESTRATION OF FED-
ERAL SPENDING TO REDUCE THE DEFICIT. 
(a) SEQUESTRATION TO REDUCE DEFICIT.—Part C 
of the Balanced Budget and Emergency Deficit Control 
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Act of 1985 is amended by inserting after section 253 the 
following new section: 
‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE DEFICIT. 
‘‘(a) SEQUESTRATION.— 
‘‘(1) TIMING.—Within 15 calendar days after 
the date Congress adjourns to end a session, and on 
the same day as sequestration (if any) under sec-
tions 251, 252, and 253, but after any sequestration 
required by those sections, there shall be a seques-
tration to eliminate the deficit equivalent to the 
amount calculated under paragraph (2). 
‘‘(2) CALCULATION.— 
‘‘(A) OMB CALCULATION.—Before October 
1st of each calendar year, OMB shall calculate 
the total amount designated under section 6097 
of the Internal Revenue Code of 1986. 
‘‘(B) FEDERAL SPENDING REDUCTION.— 
In accordance with the deadline under para-
graph (1), OMB shall apply an across the board 
reduction in Federal spending in an amount 
equal to the product of— 
‘‘(i) the amount calculated under sub-
paragraph (A); and 
‘‘(ii) 10. 
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‘‘(3) CARRYOVER.—Any amounts not calculated 
by OMB by the October 1st deadline, as set forth 
in subparagraph (2)(A), shall be applied to the fol-
lowing fiscal year Federal spending reduction pursu-
ant to this section. 
‘‘(b) APPLICABILITY.— 
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), each account of the United States 
shall be reduced by a dollar amount calculated by 
multiplying the level of budgetary resources in that 
account at that time by the uniform percentage nec-
essary to carry out subsection (a). All obligational 
authority so reduced shall be done in a manner that 
makes such reductions permanent. 
‘‘(2) EXEMPT ACCOUNTS.—The following pro-
grams shall be exempt from reduction under any 
order issued under this section: 
‘‘(A) Benefits payable under the old-age, 
survivors, and disability insurance program es-
tablished under title II of the Social Security 
Act. 
‘‘(B) Benefits payable under section 3(a), 
3(f)(3), 4(a), or 4(f) of the Railroad Retirement 
Act of 1974. 
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‘‘(C) Benefits payable under title 18 of the 
Social Security Act. 
‘‘(D) The rate of pay of any judge or jus-
tice appointed pursuant to article III of the 
Constitution of the United States. 
‘‘(E) Veteran’s benefits listed under sec-
tions 905(b) and 905(f) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 
U.S.C. 905(b), 905(f)). 
‘‘(c) EFFECTIVE DATE.—This section shall apply to 
calender years beginning after December 31, 2010.’’. 
(b) REPORTS.—Section 254 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended— 
(1) in subsection (a), by adding at the end of 
the table the following new item: 
‘‘October 1 .......................
OMB report estimating amount of income tax des-
ignated pursuant to section 6097 of the Internal 
Revenue Code of 1986.’’. 
(2) in subsection (c)(1), by inserting ‘‘, and se-
questration to reduce the deficit,’’ after ‘‘sequestra-
tion’’; 
(3) in subsection (c), by redesignating para-
graph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph: 
‘‘(5) REPORTS ON SEQUESTRATION TO REDUCE 
THE DEFICIT.—The preview reports shall set forth 
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for the budget year estimates for each of the fol-
lowing: 
‘‘(A) The aggregate amount designated 
under section 6097 of the Internal Revenue 
Code of 1986 for the last calendar year ending 
before the budget year. 
‘‘(B) The amount of reductions required 
under section 253A and the deficit remaining 
after those reductions have been made. 
‘‘(C) The sequestration percentage nec-
essary to achieve the required reduction in ac-
counts under section 253A(a).’’; and 
(4) in subsection (f), by redesignating para-
graphs (4) and (5) as paragraphs (5) and (6), re-
spectively, and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) REPORTS ON SEQUESTRATION TO REDUCE 
THE DEFICIT.—The final reports shall contain all of 
the information contained in the deficit taxation des-
ignation report required on October 1.’’. 
(c) EFFECTIVE
DATE.—Notwithstanding section 
275(b) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the expiration date set forth in that 
section shall not apply to the amendments made by this 
Act. On the date specified in section 253A of the Balanced 
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Budget and Emergency Deficit Control Act of 1985, as 
amended by this section, the President shall issue an order 
fully implementing the sequestration required by section 
253A of such Act, as amended by this section. This order 
shall be effective on issuance. 
Æ 
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