I
104TH CONGRESS
1ST SESSION
H. R. 1402
To amend the Internal Revenue Code of 1986 to improve revenue collection
and to provide that a taxpayer conscientiously opposed to participation
in war may elect to have such taxpayer’s income, estate, or gift tax
payments spent for nonmilitary purposes, to create the United States
Peace Tax Fund to receive such tax payments, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 5, 1995
Mr. JACOBS (for himself, Mr. LEACH, Mr. DELLUMS, Mr. FRANK of Massa-
chusetts, Mrs. SCHROEDER, Mr. DEFAZIO, Mr. MILLER of California,
Ms. RIVERS, Mr. TOWNS, Mr. MARKEY, Mr. OBERSTAR, Ms. VELA´ZQUEZ,
Mr. YATES, Ms. FURSE, Mr. LEWIS of Georgia, and Mr. MCHALE) intro-
duced the following bill; which was referred to the Committee on Ways
and Means, and in addition to the Committees on International Relations,
and Economic and Educational Opportunities, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to improve
revenue collection and to provide that a taxpayer con-
scientiously opposed to participation in war may elect
to have such taxpayer’s income, estate, or gift tax pay-
ments spent for nonmilitary purposes, to create the
United States Peace Tax Fund to receive such tax pay-
ments, and for other purposes.
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 ‘‘United States Peace
Tax Fund Act’’.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—The Congress finds that for a signifi-
cant minority of Americans, sincere conscientious objec-
tion to participation in war in any form means that such
Americans cannot in conscience pay the portion of their
taxes that would support military expenditures.
(b) POLICY.—It is the policy of the Congress—
(1) to improve revenue collections and to allow
conscientious objectors to pay their full tax liability
without violating their moral, ethical, or religious be-
liefs;
(2) to reduce the present administrative and ju-
dicial burden created by conscientious objectors who
violate tax laws rather than violate their consciences;
(3) to recognize conscientious objector status
with regard to the payment of taxes for military pur-
poses; and
(4) to provide a mechanism for congressional
appropriations of such funds for nonmilitary pur-
poses.
paid into the United States Peace Tax Fund established
by section 3 of the United States Peace Tax Fund Act.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE INDIVIDUAL.—
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means an individual who by reason of
religious training and belief is conscientiously
opposed to participation in war in any form,
and who—
‘‘(i) has been exempted or discharged
from combatant training and service in the
Armed Forces of the United States as a
conscientious objector under section 6(j) of
the Military Selective Service Act (50
U.S.C. App. 456(j)), or corresponding law,
or
‘‘(ii) certified in a statement in a
questionnaire return made under section
6039F that such individual is conscien-
tiously opposed to participation in war in
any form within the meaning of section
6(j) of such Act.
‘‘(B) VERIFICATION.—
‘‘(i) QUESTIONNAIRE
RETURN
RE-
CEIPT.—Any taxpayer who makes a des-
ignation under subsection (a) shall attach
the questionnaire return receipt provided
under section 6039F(b) to such taxpayer’s
return of tax.
‘‘(ii) ADDITIONAL INFORMATION MAY
BE
REQUIRED.—The Secretary may re-
quire any taxpayer who makes a designa-
tion under subsection (a) to provide such
additional information as may be necessary
to verify such taxpayer’s status as an eligi-
ble individual.
‘‘(C) DENIAL
OF
DESIGNATION.—If the
Secretary determines that a taxpayer who
makes the designation provided for by sub-
section (a) is not an eligible individual and is
not entitled to make such designation, then the
Secretary, upon written notice to the taxpayer
stating the reasons for denial, may deny the
designation. The taxpayer may challenge the
Secretary’s ruling by bringing an action in the
United States Tax Court, or in the United
States district court for the district of such tax-
payer’s residence, for a declaratory judgment as
to whether the taxpayer is an eligible individual
and entitled to make such a designation.
‘‘(2) INCOME
TAX
LIABILITY.—The term ‘in-
come tax liability’ means the amount of the tax im-
posed by chapter 1 on a taxpayer for any taxable
year (as shown on such taxpayer’s tax return) re-
duced by the sum of—
‘‘(A) the credits (as shown in such return)
allowable under part IV of subchapter A of
chapter 1 (other than subpart C thereof), and
‘‘(B) the amount designated under section
6096.
‘‘(3) INCOME
TAX
PAYMENT.—The term ‘in-
come tax payment’ means the amount of taxes im-
posed by chapter 1 and paid by or withheld from a
taxpayer for any taxable year not in excess of such
taxpayer’s income tax liability.
‘‘(c) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year either—
‘‘(1) at the time of filing the return of the tax
imposed by chapter 1 for such taxable year, or
‘‘(2) at any other time (after the time of filing
the return of the tax imposed by chapter 1 for such
taxable year) specified in regulations prescribed by
the Secretary.
Such designation shall be made in such manner as the
Secretary prescribes by regulations except that, if such
designation is made at the time described in paragraph
(1), such designation shall be made on the page bearing
the taxpayer’s signature.
‘‘(d) SPECIAL RULE IN THE CASE OF JOINT RE-
TURN.—In the case of an eligible individual filing a joint
return, upon the consent of such individual’s spouse, the
joint income tax payment may be designated pursuant to
subsection (a).
‘‘(e) EXPLANATION OF UNITED STATES PEACE TAX
FUND PURPOSES.—Each publication of general instruc-
tions accompanying an income tax return or a question-
naire return described in section 6039F shall include—
‘‘(1) an explanation of the purpose of the
United States Peace Tax Fund,
‘‘(2) the criteria for determining whether an in-
dividual meets the requirements of section 6(j) of
the Military Selective Service Act (50 U.S.C. App.
456(j)), and
‘‘(3) an explanation of the process for making
the designation provided by this section.’’.
(b) CLERICAL AMENDMENTS.—The table of parts of
subchapter A of chapter 61 of the Internal Revenue Code
of 1986 is amended by adding at the end the following
new item:
‘‘Part IX—Designation of income tax payments for transfer to
United States Peace Tax Fund.’’.
(c) DESIGNATION INFORMATION.—
(1) Subpart A of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986
(relating to information and returns) is amended by
adding at the end thereof the following new section:
‘‘SEC. 6039F. UNITED STATES PEACE TAX FUND DESIGNA-
TION INFORMATION.
‘‘(a) QUESTIONNAIRE RETURN.—Every taxpayer who
makes a designation described in section 6099(a) for any
taxable year shall make a questionnaire return during
such year as described in this section. The questionnaire
return shall request the taxpayer to certify such taxpayer’s
beliefs about participation in war, the source or genesis
of such beliefs, and how the beliefs affect the taxpayer’s
life.
‘‘(b) QUESTIONNAIRE RETURN RECEIPT.—Upon re-
ceipt of a questionnaire return that is timely filed, the Sec-
retary shall issue a receipt to the taxpayer indicating time-
ly filing of such return.’’.
(2) The table of sections for such subpart is
amended by adding at the end the following new
item:
‘‘Sec. 6039F. United States Peace Tax Fund designation infor-
mation.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to—
(1) taxable years beginning after December 31,
1995, and
(2) any taxable year ending before January 1,
1996, for which the time for filing a claim for re-
fund or credit of an overpayment of tax has not ex-
pired on the date of the enactment of this Act.
(e) RULES APPLICABLE TO RETURNS OF TAX FOR
TAXABLE YEARS ENDING BEFORE DATE
OF ENACT-
MENT.—
(1) PENALTIES FOR FAILURE TO PAY TAX.—
Notwithstanding any other law, any person’s failure
or refusal, before the date of the enactment of this
Act, to pay all or a part of the tax imposed by chap-
ter 1 of the Internal Revenue Code of 1986 shall not
be a violation of Federal law if the person—
(A) pays the tax due (with interest), and
(B) establishes to the satisfaction of the
Secretary of the Treasury that the failure or re-
fusal to pay was based upon such person’s con-
scientious objection to participation in war in
any form within the meaning of section
6099(b)(1)(A) of such Code (defining eligible
individual).
(2) DISPOSITION OF AMOUNTS COLLECTED.—
There are hereby transferred to the Fund amounts
equivalent to the sum of the amounts paid into the
Treasury by persons under the provisions of para-
graph (1). Such amounts shall be deposited into the
Fund and shall be available only for the purposes
provided in this Act.
SEC. 5. ESTATE TAX PAYMENTS TO UNITED STATES PEACE
TAX FUND.
(a) IN GENERAL.—Subchapter C of chapter 11 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new section:
‘‘SEC. 2210. DESIGNATION OF ESTATE TAX PAYMENTS FOR
TRANSFER TO UNITED STATES PEACE TAX
FUND.
‘‘An eligible individual (within the meaning of section
6099(b)(1)) may elect that the tax imposed by section
2001 on the taxable estate of such individual shall be
transferred when paid to the United States Peace Tax
Fund established by section 3 of the United States Peace
Tax Fund Act. The election may be made by the executor
or administrator of the estate under written authority of
the decedent. Such election shall be made in such manner
as the Secretary shall by regulations prescribe.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter C of chapter 11 of the Internal Revenue
Code of 1986 is amended by adding at the end the follow-
ing:
‘‘Sec. 2210. Designation of estate tax payments for transfer to
United States Peace Tax Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to the estates of dece-
dents dying after December 31, 1995.
SEC. 6. GIFT TAX PAYMENTS TO UNITED STATES PEACE
TAX FUND.
(a) IN GENERAL.—Subchapter A of chapter 12 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new section:
‘‘SEC. 2506. DESIGNATION OF GIFT TAX PAYMENTS FOR
TRANSFER TO UNITED STATES PEACE TAX
FUND.
‘‘Any eligible individual (within the meaning of sec-
tion 6099(b)(1)) may elect that the tax imposed by section
2501 shall be transferred when paid to the United States
Peace Tax Fund established by section 3 of the United
States Peace Tax Fund Act. The election shall be made
in such manner as the Secretary shall by regulations pre-
scribe.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter A of chapter 12 of the Internal Revenue
Code of 1986 is amended by adding at the end the follow-
ing new item:
‘‘Sec. 2506. Designation of gift tax payments for transfer to
United States Peace Tax Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to gifts made after
December 31, 1995.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
(a) CERTIFICATION BY COMPTROLLER GENERAL.—
As soon after the close of each fiscal year as may be prac-
ticable, the Comptroller General shall determine and cer-
tify to the Congress and to the President the percentage
of actual appropriations made for a military purpose with
respect to such fiscal year. The certification shall be pub-
lished in the Congressional Record upon receipt by the
Congress.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
hereby authorized to be appropriated for each fiscal year
a certain portion of the Fund for obligation and expendi-
ture in accordance with the provisions of this Act. Such
portion is equal to an amount which is the sum of—
(1) the product of—
(A) all funds transferred to the Fund in
the previous fiscal year, times
(B) the percentage determined under sub-
section (a) for such previous fiscal year, plus
(2) all funds in the Fund previously authorized
to be appropriated under this subsection but not yet
appropriated pursuant to this Act.
Funds remaining in the Fund shall accrue interest accord-
ing to the prevailing rate in long-term Government bonds.
(c) SURPLUS COVERED INTO GENERAL FUND.—For
each fiscal year, the portion of the Fund which is attrib-
utable to funds transferred to the Fund in the previous
fiscal year and which is not authorized to be appropriated
under subsection (b) is hereby covered into the general
fund of the Treasury of the United States. No part of
the funds transferred to the general fund under this sub-
section shall be appropriated for any expenditures, or oth-
erwise obligated, for a military purpose.
SEC. 8. ELIGIBLE APPROPRIATIONS.
(a) PAYMENTS.—Funds appropriated pursuant to the
authorization under section 7(b) shall be available, subject
to appropriation, to make grants, loans, or other arrange-
ments for eligible activities described in subsection (b).
(b) ELIGIBLE ACTIVITIES.—The following activities
are eligible to receive funds under subsection (a):
(1) Special Supplemental Food Program for
Women, Infants and Children (WIC);
(2) Head Start;
(3) United States Institute of Peace; and
(4) Peace Corps.
(c) DISPLACEMENT OF OTHER FUNDS.—It is the in-
tent of this Act that the Fund shall not operate to release
funds for military expenditures which, were it not for the
existence of the Fund, would otherwise have been appro-
priated for nonmilitary expenditures.
SEC. 9. DEFINITIONS.
For the purposes of this Act—
(1) The term ‘‘military purpose’’ means any ac-
tivity or program which any agency of the Govern-
ment conducts, administers, or sponsors and which
effects an augmentation of military forces or of de-
fensive and offensive intelligence activities, or en-
hances the capability of any person or nation to
wage war.
(2) The term ‘‘actual appropriations made for
a military purpose’’ includes, but is not limited to,
amounts appropriated by the United States in con-
nection with—
(A) the Department of Defense;
(B) the Central Intelligence Agency;
(C) the National Security Council;
(D) the Selective Service System;
(E) activities of the Department of Energy
that have a military purpose;
(F) activities of the National Aeronautics
and Space Administration that have a military
purpose;
(G) foreign military aid; and
(H) the training, supplying, or maintaining
of military personnel, or the manufacture, con-
struction, maintenance, or development of mili-
tary weapons, installations, or strategies.
(3) The term ‘‘agency’’ means each authority of
the Government of the United States, whether or
not it is within or subject to review by another agen-
cy, but does not include—
(A) the Congress; or
(B) the courts of the United States.
(4) The term ‘‘person’’ includes an individual,
partnership, corporation, association, or public or
private organization other than an agency.
SEC. 10. SEPARABILITY.
If any section, subsection, or other provision of this
Act, or the application thereof to any person or cir-
cumstance, is held invalid, the remainder of this Act and
the application of such section, subsection, or other provi-