I
104TH CONGRESS
1ST SESSION
H. R. 13
To amend the Internal Revenue Code of 1986 to allow individuals to designate
that up to 10 percent of their income tax liability be used to reduce
the national debt, and to require spending reductions equal to the
amounts so designated.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. WALKER (for himself, Mr. KASICH, Mr. ARMEY, Mr. ALLARD, Mr.
BACHUS, Mr. BAKER of California, Mr. BAKER of Louisiana, Mr.
BALLENGER, Mr. BARTLETT of Maryland, Mr. BILIRAKIS, Mr. BLILEY,
Mr. BLUTE, Mr. BOEHNER, Mr. BONILLA, Mr. BURTON of Indiana, Mr.
CALVERT, Mr. CAMP, Mr. CANADY, Mr. COBLE, Mr. COMBEST, Mr. COX,
Mr. CRAPO, Mr. DOOLITTLE, Mr. DORNAN, Mr. DUNCAN, Ms. DUNN of
Washington, Mr. EVERETT, Mr. EWING, Mr. FAWELL, Mr. FOX, Mr.
FRANKS of New Jersey, Mr. FRISA, Mr. GEKAS, Mr. GOODLATTE, Mr.
GOSS, Mr. GREENWOOD, Mr. HANCOCK, Mr. HANSEN, Mr. HASTERT,
Mr. HEFLEY, Mr. HERGER, Mr. HOEKSTRA, Mr. HUNTER, Mr. HUTCH-
INSON, Mr. INGLIS of South Carolina, Mr. KLUG, Mr. KNOLLENBERG,
Mr. KOLBE, Mr. LIGHTFOOT, Mr. LINDER, Mr. LUCAS, Mr. MANZULLO,
Mr. MCCOLLUM, Mr. MCCRERY, Mr. MILLER of Florida, Mr. NUSSLE,
Mr. OXLEY, Mr. PACKARD, Mr. PAXON, Mr. PORTMAN, Mr. RAMSTEAD,
Mr. ROYCE, Mr. SALMON, Mr. SCHIFF, Mr. SENSENBRENNER, Mr.
SMITH of Texas, Mr. SMITH of Michigan, Mr. SOLOMON, Mr. STEARNS,
Mr. STUMP, Mr. TORKILDSEN, Mr. UPTON, Mrs. VUCANOVICH, Mr.
WELDON of Pennsylvania, and Mr. ZIMMER) introduced the following bill;
which was referred to the Committee on Ways and Means and, in addi-
tion, to the Committee on 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 amend the Internal Revenue Code of 1986 to allow indi-
viduals to designate that up to 10 percent of their income
tax liability be used to reduce the national debt, and
to require spending reductions equal to the amounts
so designated.
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 ‘‘Taxpayer Debt Buy-
Down Act’’.
SEC. 2. DESIGNATION OF AMOUNTS FOR REDUCTION OF
PUBLIC DEBT.
(a) IN GENERAL.—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 following
new part:
‘‘PART IX—DESIGNATION FOR REDUCTION OF
PUBLIC DEBT.
‘‘Sec. 6097. Designation.
‘‘SEC. 6097. DESIGNATION.
‘‘(a) IN GENERAL.—Every individual with adjusted
income tax liability for any taxable year may designate
that a portion of such liability (not to exceed 10 percent
thereof) shall be used to reduce the public debt.
‘‘(b) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year only at the time of filing the return
SEC. 4. TAXPAYER-GENERATED SEQUESTRATION OF FED-
ERAL SPENDING TO REDUCE THE PUBLIC
DEBT.
(a) SEQUESTRATION
TO
REDUCE
THE
PUBLIC
DEBT.—Part C of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by adding after
section 253 the following new section:
‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC
DEBT.
‘‘(a) SEQUESTRATION.—Notwithstanding sections
255 and 256, within 15 days after Congress adjourns to
end a session, and on the same day as sequestration (if
any) under sections 251, 252, and 253, but after any se-
questration required by those sections, there shall be a se-
questration equivalent to the estimated aggregate amount
designated under section 6097 of the Internal Revenue
Code of 1986 for the last taxable year ending one year
before the beginning of that session of Congress, as esti-
mated by the Department of the Treasury on October 1
and as modified by the total of (1) any amounts by which
net discretionary spending is reduced by legislation below
the discretionary spending limits enacted after the enact-
ment of this section related to the fiscal year subject to
the sequestration (or, in the absence of such limits, any
net deficit change from the baseline amount calculated
under section 257 (except that such baseline for fiscal year
1996 and thereafter shall be based upon fiscal year 1995
enacted appropriations less any 1995 sequesters) and (2)
the net deficit change that has resulted from all direct
spending legislation enacted after the enactment of this
section related to the fiscal year subject to the sequestra-
tion, as estimated by OMB. If the reduction in spending
under paragraphs (1) and (2) for a fiscal year is greater
than the estimated aggregate amount designated under
section 6097 of the Internal Revenue Code of 1986 re-
specting that fiscal year, then there shall be no sequestra-
tion under 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 reduced under this section shall be done in
a manner that makes such reductions permanent.
‘‘(2) EXEMPT
ACCOUNTS.—No order issued
under this part may—
‘‘(A) reduce benefits payable the old-age
and survivors insurance program established
under title II of the Social Security Act;
‘‘(B) reduce payments for net interest (all
of major functional category 900); or
‘‘(C) make any reduction in the following
accounts:
‘‘Federal Deposit Insurance Corpora-
tion, Bank Insurance Fund;
‘‘Federal Deposit Insurance Corpora-
tion, FSLIC Resolution Fund;
‘‘Federal Deposit Insurance Corpora-
tion, Savings Association Insurance Fund;
‘‘National Credit Union Administra-
tion, credit union share insurance fund; or
‘‘Resolution Trust Corporation.’’.
(b) REPORTS.—Section 254 of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended—
(1) in subsection (a), by inserting after the item
relating to the GAO compliance report the following:
‘‘October 1 . . . Department of Treasury report to
Congress estimating amount of income tax designated
pursuant to section 6097 of the Internal Revenue Code
of 1986.’’;
(2) in subsection (d)(1), by inserting ‘‘, and se-
questration to reduce the public debt,’’;
(3) in subsection (d), by redesignating para-
graph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
‘‘(5) SEQUESTRATION TO REDUCE THE PUBLIC
DEBT REPORTS.—The preview reports shall set forth
for the budget year estimates for each of the follow-
ing:
‘‘(A) The aggregate amount designated
under section 6097 of the Internal Revenue
Code of 1986 for the last taxable 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(b).’’; and
(4) in subsection (g), 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) SEQUESTRATION TO REDUCE THE PUBLIC
DEBT REPORTS.—The final reports shall contain all
of the information contained in the public debt tax-
ation designation 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
section. The amendments made by this section shall cease
to have any effect after the first fiscal year during which
there is no public debt.
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