‘‘(4) 3-MONTH TREASURY RATE.—For purposes 
of this subsection, the 3-month Treasury rate is the 
rate determined by the Secretary based on the aver-
age market yield (during any 1-month period se-
lected by the Secretary and ending in the calendar 
month in which the determination is made) on out-
standing marketable obligations of the United States 
with remaining periods to maturity of 3 months or 
less. 
‘‘SEC. 60C. TAX ON NONCASH COMPENSATION PROVIDED 
TO EMPLOYEES NOT ENGAGED IN BUSINESS 
ACTIVITY. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
on every employer of an employee to whom this section 
applies and who makes an election to be taxed under this 
part a tax equal to— 
‘‘(1) 19 percent of the value of excludable com-
pensation provided during the calendar year by the 
employer for the benefit of employees to whom this 
section applies in the case of the first 2 calendar 
years beginning with the calendar year for which the 
election under section 60 is made, and 
‘‘(2) 17 percent of such excludable compensa-
tion during the calendar year in the case of all cal-
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endar years subsequent to the calendar years de-
scribed in paragraph (1). 
‘‘(b) LIABILITY FOR TAX.—The tax imposed by this 
section shall be paid by the employer. 
‘‘(c) EXCLUDABLE COMPENSATION.—For purposes 
of subsection (a), the term ‘excludable compensation’ 
means any remuneration for services performed as an em-
ployee other than— 
‘‘(1) wages (as defined in section 3121(a) with-
out regard to paragraph (1) thereof) which are paid 
in cash, 
‘‘(2) remuneration for services performed out-
side the United States, and 
‘‘(3) retirement contributions to or under any 
plan or arrangement which makes retirement dis-
tributions (as defined in section 60A(d)). 
‘‘(d) EMPLOYEES TO WHOM SECTION APPLIES.— 
This section shall apply to an employee who is employed 
in any activity by— 
‘‘(1) any organization which is exempt from 
taxation under this chapter, or 
‘‘(2) any agency or instrumentality of the 
United States, any State or political subdivision of 
a State, or the District of Columbia.’’. 
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(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART VIII. THE FLAT TAX’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 3. REPEAL OF ESTATE AND GIFT TAXES. 
(a) IN GENERAL.—Subtitle B of the Internal Rev-
enue Code of 1986 is hereby repealed. 
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply to the estates of decedents dying, 
and gifts and generation-skipping transfers made, after 
December 31, 2022. 
(c) CROSS REFERENCE.—See section 102 of the In-
ternal Revenue Code of 1986 for exclusion of gifts and 
inheritances from gross income. 
SEC. 4. SUPERMAJORITY REQUIRED TO CONSIDER REV-
ENUE MEASURE. 
A bill, joint resolution, amendment to a bill or joint 
resolution, or conference report that— 
(1) includes an increase in the rates of tax 
specified in section 60A(a) or 60B(a) of the Internal 
Revenue Code of 1986 (as amended by this Act), or 
(2) reduces the standard deduction, as defined 
in section 60A(c) of such Code (as so amended), or 
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the deductions specified in section 60B(d) of such 
Code (as so amended), 
may not be considered as passed or agreed to by the 
House of Representatives or the Senate unless so deter-
mined by a vote of not less than two-thirds of the Members 
of the House of Representatives or the Senate (as the case 
may be) voting, a quorum being present. 
Æ 
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