I 
109TH CONGRESS 
2D SESSION 
H. R. 5257 
To amend the Internal Revenue Code of 1986 to provide a basic income 
guarantee in the form of a refundable tax credit for taxpayers who 
do not itemize deductions. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 2, 2006 
Mr. FILNER 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 
a basic income guarantee in the form of a refundable 
tax credit for taxpayers who do not itemize deductions. 
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 ‘‘Tax Cut for the Rest 
of Us Act of 2006’’. 
SEC. 2. BASIC INCOME GUARANTEE FOR TAXPAYERS WHO 
DO NOT ITEMIZE DEDUCTIONS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and inserting after sec-
tion 35 the following new section: 
‘‘SEC. 36. BASIC INCOME GUARANTEE FOR TAXPAYERS WHO 
DO NOT ITEMIZE DEDUCTIONS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle for the taxable year an amount equal to 
the basic income guarantee amount. 
‘‘(b) BASIC GUARANTEE AMOUNT.—For purposes of 
this section, the term ‘basic guarantee amount’ means the 
sum of— 
‘‘(1) $2,000 for the taxpayer, 
‘‘(2) $2,000 for the spouse of the taxpayer, and 
‘‘(3) $1,000 for each qualified dependent of the 
taxpayer. 
‘‘(c) CREDIT ONLY ALLOWED TO TAXPAYERS WHO 
DO NOT ITEMIZE DEDUCTIONS FOR TAXABLE YEAR.— 
A credit shall be allowed under subsection (a) for a taxable 
year only if the taxpayer does not claim itemized deduc-
tions (as defined by section 63(d)) on his return of tax 
for the taxable year. 
‘‘(d) DEFINITIONS.—For purposes of this section, the 
term ‘qualified dependent’ means a dependent of the tax-
payer who has not attained the age of 19 as of the close 
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of the taxable year in which the taxable year of the tax-
payer begins. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) 
BASIC
STANDARD
DEDUCTION
DIS-
ALLOWED.—If a credit is allowed to the taxpayer 
under subsection (a) for the taxable year, the basic 
standard deduction (as defined by section 63(c)(2) 
for such taxable year is zero. 
‘‘(2) DEDUCTION FOR PERSONAL EXEMPTION 
AMOUNT DISALLOWED.—If a credit is allowed to the 
taxpayer under subsection (a) for the taxable year, 
the exemption amount (as determined under section 
151) for each exemption of the taxpayer shall be 
zero. 
‘‘(3) TREATMENT IF DEPENDENT OF ANOTHER 
TAXPAYER.—If a deduction under section 151 with 
respect to an individual is allowed to another tax-
payer for a taxable year beginning in the calendar 
year in which such individual’s taxable year begins, 
no credit shall be allowed under subsection (a) to 
such individual for such individual’s taxable year. 
‘‘(f) ADJUSTMENTS FOR INFLATION.—In the case of 
any taxable year beginning after December 31, 2006, each 
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dollar amount in subsection (b) shall be increased by an 
amount equal to— 
‘‘(2) such dollar amount, multiplied by 
‘‘(3) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 2005’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
If any increase determined under paragraph (2) is not a 
multiple of $50, such increase shall be rounded to the next 
lowest multiple of $50. 
‘‘(g) ELECTION NOT TO TAKE CREDIT.—No credit 
shall be allowed under subsection (a) for a taxable year 
if the taxpayer elects not to have this section apply for 
such taxable year.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting be-
fore the period ‘‘, or from section 36 of such Code’’. 
(2) The table of sections for subpart C of part 
IV of chapter 1 of the Internal Revenue Code of 
1986 is amended by redesignating the item relating 
to section 36 as an item relating to section 37 and 
by inserting after the item relating to section 35 the 
following new item: 
‘‘Sec. 36. Basic income guarantee for taxpayers who do not itemize deduc-
tions.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
Æ 
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