I
104TH CONGRESS
2D SESSION
H. R. 3998
To provide that individuals otherwise entitled to receive payments from the
Federal Government may specify that a portion of those payments be
used for deficit reduction.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. NETHERCUTT (for himself, Mr. WICKER, and Mr. BARRETT of Wisconsin)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on National Secu-
rity, Veterans’ Affairs, and the Budget, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To provide that individuals otherwise entitled to receive pay-
ments from the Federal Government may specify that
a portion of those payments be used for deficit reduction.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Citizen Debt Reduction Contribution Act’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Sense of the Congress.
Sec. 3. Income tax refunds.
Sec. 4. Donation of social security benefits for purposes of reducing the Federal
deficit.
Sec. 5. Donation of military retirement benefits for purposes of reducing the
Federal deficit.
Sec. 6. Donation of veterans’ disability compensation for purposes of reducing
the Federal deficit.
Sec. 7. Budgetary treatment of savings resulting from this Act.
SEC. 2. SENSE OF THE CONGRESS.
It is the sense of the Congress that any budget sav-
ings resulting from this Act should be used solely to re-
duce net Government spending. Congress appreciates and
respects the contributions made by citizens participating
in the programs authorized by this Act, and shares their
concerns at excessive Government spending.
SEC. 3. INCOME TAX REFUNDS.
(a) GENERAL RULE.—Subchapter A of chapter 61 of
the Internal Revenue Code of 1986 (relating to returns
and records) is amended by adding at the end the follow-
ing new part:
‘‘PART IX—DESIGNATION OF IN-
COME 
TAX 
OVERPAYMENTS
TO BE USED TO REDUCE PUB-
LIC DEBT
‘‘Sec. 6097. Designation of income tax overpayments.
‘‘SEC. 6097. DESIGNATION OF INCOME TAX OVERPAYMENTS.
‘‘(a) GENERAL RULE.—Every taxpayer who makes a
return of the tax imposed by chapter 1 for any taxable
year may designate that a specified portion (not less than
$1) of any overpayment of tax for such taxable year shall
be used to reduce the public debt of the United States.
‘‘(b) MANNER AND TIME OF DESIGNATION.—Any
designation under subsection (a) for any taxable year shall
be made—
‘‘(1) at the time of filing the return of the tax
imposed by chapter 1 for such taxable year, and
‘‘(2) in such manner as the Secretary may by
regulation prescribe, except that such designation
shall be made either on the first page of the return
or on the page bearing the taxpayer’s signature.
‘‘(c) TREATMENT OF AMOUNTS DESIGNATED.—For
purposes of this title, the amount designated by any tax-
payer under subsection (a)—
‘‘(1) shall be treated as being refunded to such
taxpayer as of the last date prescribed for filing the
return of tax imposed by chapter 1 (determined
without regard to extensions) or, if later, the date
the return is filed, and
‘‘(2) shall be treated as a contribution made by
such taxpayer on such date to the United States.’’
(b) TRANSFER OF DESIGNATED AMOUNTS FOR DEF-
ICIT REDUCTION.—The Secretary of the Treasury shall,
from time to time, transfer to the special account de-
scribed in section 3113(d) of title 31, United States Code,
the amounts designated under section 6097 of the Internal
Revenue Code of 1986 to be used to reduce the public
debt of the United States.
(c) 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 overpayments to be used to
reduce public debt.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 4. DONATION OF SOCIAL SECURITY BENEFITS FOR
PURPOSES OF REDUCING THE FEDERAL DEF-
ICIT.
Section 201(i) of the Social Security Act (42 U.S.C.
401(i)) is amended—
(1) in paragraph (1), by inserting ‘‘(A)’’ after
‘‘(1)’’;
(2) in paragraph (2), by striking ‘‘paragraph
(1)’’ and inserting ‘‘subparagraph (A)’’, and by re-
designating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(3) by redesignating paragraph (2) as subpara-
graph (B); and
(4) by adding at the end the following new
paragraph: