I 
109TH CONGRESS 
1ST SESSION 
H. R. 41 
To establish a commission on tax reform. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 4, 2005 
Mr. BARRETT of South Carolina (for himself, Mr. COX, Mr. SIMPSON, Mr. 
GARRETT of New Jersey, Mr. GREEN of Wisconsin, Mr. WILSON of South 
Carolina, Mr. CALVERT, Mr. BURTON of Indiana, Mr. BONILLA, Mr. 
GARY G. MILLER of California, Mr. BARTLETT of Maryland, Mr. PITTS, 
Mr. DOOLITTLE, Mr. RYUN of Kansas, Mr. CHOCOLA, Mr. FLAKE, and 
Mr. GOODE) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Rules, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To establish a commission on tax reform. 
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 Reform Action 
Commission Act of 2005’’. 
SEC. 2. FINDINGS. 
The Congress finds the following:
(1) The current Federal tax system is fun-
damentally defective, economically counter-produc-
tive, and its complexity leads to staggering costs for 
taxpayers. 
(2) Complexity and frequent change of the In-
ternal Revenue Code of 1986 cause taxpayer and ad-
ministrative confusion and uncertainty. The signifi-
cant difficulty in understanding tax rules and regu-
lations due to their lack of clarity and readability 
annually forces United States taxpayers to expend 
enormous sums of time and money on compliance 
and administration activities which represent a pure 
loss to the economy every year. 
(3) A major source of complexity is the use of 
the Federal tax system to advance social and eco-
nomic policies. Targeted benefits in the form of pref-
erential rates, exclusions, exemptions, deductions, 
credits, deferrals and adjustments are examples of 
factors that complicate the Internal Revenue Code of 
1986. 
(4) Among the reasons that the Internal Rev-
enue Code of 1986 is considered unfair is its dis-
similar treatment of similarly situated taxpayers and 
because those who have the means to afford profes-
sional advice are more likely to receive optimal treat-
ment and maximum benefits. 
(5) The tax laws of the United States are 
among the most burdensome and uncompetitive in 
the world and those laws make it difficult for domes-
tically-owned United States companies to compete 
abroad and in the United States. A domestically- 
owned corporation is disadvantaged compared to a 
United States subsidiary of a foreign-owned corpora-
tion and international competitiveness is forcing 
many United States corporations to make a choice 
they do not want to make: go out of business, sell 
the business to a foreign competitor, or become a 
subsidiary of a foreign corporation. 
(6) The current tax system discourages saving 
and depresses the level of United States capital ac-
cumulation available for financing investment, which 
is critical to the growth potential of the economy, 
real income, and living standards. 
(7) Past efforts at partial reform of the Inter-
nal Revenue Code of 1986 have not succeeded in re-
ducing its complexity, removing its distortions of 
economic incentives, or making it fairer. Those de-
structive problems and others stemming from the In-
ternal Revenue Code of 1986 can and should be ad-
dressed through responsible fundamental tax reform. 
Despite the fact that a number of viable tax reform 
proposals have been offered, a lack of consensus has 
blocked progress toward the consideration and en-
actment of an existing or new plan. 
(8) Therefore, in order to proceed with respon-
sible and needed tax reform, it is necessary to estab-
lish a Tax Reform Action Commission charged with 
developing a proposal to achieve tax reform that will 
benefit all Americans. 
SEC. 3. OBJECTIVES OF REFORM. 
The Congress finds that it must act to reform the 
Internal Revenue Code of 1986 so that the United States 
has a tax system that is— 
(1) simple, transparent, and efficient; 
(2) fair and equitable to all Americans; and 
(3) neutral between different activities and be-
tween current consumption and future consumption. 
SEC. 4. ESTABLISHMENT OF COMMISSION. 
There is established in the legislative branch a Tax 
Reform Action Commission (in this Act referred to as the 
‘‘Commission’’). 
SEC. 5. DUTIES OF THE COMMISSION. 
(a) RECOMMENDATIONS
FOR REFORM.—Not later 
than 2 years after the date on which the Commission is
established, the Commission shall make specific rec-
ommendations to Congress for reform of the internal rev-
enue laws in a manner that incorporates the objectives of 
reform set forth in section 3. The recommendations of the 
Commission shall be based on its compilation and rec-
onciliation of the recommendations of the task forces con-
vened by the Commission pursuant to section 9 and shall 
provide for such appropriate interagency support and co-
operation as may be necessary to attain such objectives. 
(b) LEGISLATIVE LANGUAGE.—The recommenda-
tions required under subsection (a) shall include legislative 
language necessary for carrying out such recommenda-
tions. The Commission shall develop such legislative lan-
guage after conducting such public hearings and con-
sulting with such public or private entities as the Commis-
sion considers necessary and appropriate to make the rec-
ommendations required under subsection (a). 
SEC. 6. COMPOSITION OF THE COMMISSION. 
(a) NUMBER AND APPOINTMENT.—The Commission 
shall be composed of 15 members, as follows: 
(1) Three members appointed by the President, 
two from the executive branch of the Government 
and one from private life.
(2) Four members appointed by the majority 
leader of the Senate, one from Members of the Sen-
ate and three from private life. 
(3) Two members appointed by the minority 
leader of the Senate, one from Members of the Sen-
ate and one from private life. 
(4) Four members appointed by the Speaker of 
the House of Representatives, one from Members of 
the House and three from private life. 
(5) Two members appointed by the minority 
leader of the House of Representatives, one from 
Members of the House and one from private life. 
(b) QUALIFICATIONS.—The members of the Commis-
sion shall consist of individuals who are of recognized 
standing and distinction and who possess a demonstrated 
capacity to discharge the duties imposed on the Commis-
sion. 
(c) CHAIR.—The President shall designate a member 
of the Commission to serve as Chair of the Commission 
who shall chair the Commission, determine its duties, and 
supervise its staff. 
(d) TERMS OF APPOINTMENT.—The members of the 
Commission shall be appointed not more than 30 days 
after the date of the enactment of this Act. The members
of the Commission shall serve for the life of the Commis-
sion. 
(e) VACANCIES.—A vacancy in the Commission shall 
not affect the power of the remaining members to execute 
the duties of the Commission but any such vacancy shall 
be filled in the same manner in which the original appoint-
ment was made. 
SEC. 7. PROCEDURES. 
(a) MEETINGS.—The Commission shall meet at the 
call of its Chair or a quorum of its members. 
(b) QUORUM.—A quorum shall consist of nine mem-
bers of the Commission, except that a lesser number may 
conduct a hearing under subsection (c). 
(c) HEARINGS AND OTHER ACTIVITIES.—For the 
purpose of carrying out its duties, the Commission may 
hold such hearings and undertake such other activities as 
the Commission determines necessary to carry out its du-
ties. 
(d) OBTAINING INFORMATION.—Upon request of the 
Commission, the Secretary of the Treasury and the head 
of any other department, agency, or instrumentality of the 
Federal Government shall furnish information deemed 
necessary by the Commission to enable it to carry out its 
duties.
SEC. 8. ADMINISTRATION. 
(a) COMPENSATION.—Except as provided in sub-
section (b), members of the Commission shall receive no 
additional pay, allowances, or benefits by reason of their 
service on the Commission. 
(b) TRAVEL EXPENSES AND PER DIEM.—Each mem-
ber of the Commission who is not a present Member of 
the Congress and who is not otherwise an officer or em-
ployee of the Federal Government shall receive travel ex-
penses and per diem in lieu of subsistence in accordance 
with sections 5702 and 5703 of title 5, United States 
Code. 
(c) STAFF AND SUPPORT SERVICES.— 
(1) STAFF DIRECTOR.— 
(A) APPOINTMENT.—The Chair in accord-
ance with the rules agreed upon by the Com-
mission shall appoint a staff director for the 
Commission. 
(B) COMPENSATION.—The staff director 
shall be paid at a rate not to exceed the rate 
established for level V of the Executive Sched-
ule under section 5315 of title 5, United States 
Code. 
(2) STAFF.—The Chair in accordance with the 
rules agreed upon by the Commission shall appoint
such additional personnel as the Commission deter-
mines to be necessary. 
(3) APPLICABILITY OF CIVIL SERVICE LAWS.— 
The staff director and other members of the staff of 
the Commission shall be appointed without regard to 
the provisions of title 5, United States Code, gov-
erning appointments in the competitive service, and 
shall be paid without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of such 
title relating to classification and General Schedule 
pay rates. 
(4) EXPERTS
AND
CONSULTANTS.—With the 
approval of the Commission, the staff director may 
procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code. 
(d) PHYSICAL FACILITIES.—The Architect of the 
Capitol, in consultation with the appropriate entities in the 
legislative branch, shall locate and provide suitable office 
space for the operation of the Commission on a non-
reimbursable basis. The facilities shall serve as the head-
quarters of the Commission and shall include all necessary 
equipment and incidentals required for the proper func-
tioning of the Commission. 
(e) ADMINISTRATIVE
SUPPORT
SERVICES
AND 
OTHER ASSISTANCE.—
(1) Upon the request of the Commission, the 
Architect of the Capitol, the Commissioner of Social 
Security, and the Administrator of General Services 
shall provide to the Commission on a nonreimburs-
able basis such administrative support services as 
the Commission may request. 
(2) In addition to the assistance set forth in 
paragraphs (1) and (2), departments and agencies of 
the United States may provide the Commission such 
services, funds, facilities, staff, and other support 
services as the Commission may deem advisable and 
as may be authorized by law. 
(f) USE OF MAILS.—The Commission may use the 
United States mails in the same manner and under the 
same conditions as Federal agencies and shall, for pur-
poses of the frank, be considered a commission of Con-
gress as described in section 3215 of title 39, United 
States Code. 
(g) PRINTING.—For purposes of costs relating to 
printing and binding, including the cost of personnel de-
tailed from the Government Printing Office, the Commis-
sion shall be deemed to be a committee of the Congress. 
SEC. 9. TASK FORCES. 
(a) IN GENERAL.—For purposes of making and com-
piling recommendations of the Commission for submission
to the Congress pursuant to section 5, the Commission 
shall establish such task forces and designate such depart-
ments, agencies, and instrumentalities of the Federal Gov-
ernment as it determines necessary or appropriate to ef-
fectively obtain the expeditious attainment of the objec-
tives specified in section 3. 
(b) AGENCY
COOPERATION.—Each 
department, 
agency, and instrumentality designated by the Commis-
sion pursuant to subsection (a) in connection with one or 
more task forces specified in subsection (a) shall assign 
to the Commission representatives of such department, 
agency, or instrumentality for service on such task forces. 
The Commission, and each department, agency, and in-
strumentality designated for service on a task force under 
this section, shall provide such staff and administrative 
support services to the task force as may be necessary and 
appropriate, in accordance with procedures which shall be 
prescribed by the Commission. 
(c) DUTIES
OF TASK FORCES.—The Commission 
shall assign each task force a deadline for submitting its 
recommendations to the Commission and shall inform 
each House of the Congress of the convening of each task 
force and the deadline assigned to it. Each task force con-
vened pursuant to subsection (a) shall, by such date as 
shall be specified by the Commission, provide the Commis-
sion with its recommendations for attaining the goals ad-
dressed by the task force, together with appropriate time-
tables for achieving such goals. 
(d) SEPARATE REPORTS AND TERMINATION.—Upon 
submission by each task force of its recommendations to 
the Commission, the task force shall submit to each House 
of the Congress a copy of its recommendations to the 
Commission, and shall thereupon terminate. 
SEC. 
10. 
CONGRESSIONAL 
CONSIDERATION 
OF 
REC-
OMMENDATIONS. 
(a) INTRODUCTION
OF
RECOMMENDATIONS
AND 
COMMITTEE CONSIDERATION.— 
(1) INTRODUCTION.—The legislative language 
transmitted pursuant to section 5(b) with the rec-
ommendations for reform of the Commission shall be 
in the form of a bill (in this title referred to as the 
‘‘reform bill’’). Such reform bill shall be introduced 
in the House of Representatives by the Speaker, and 
in the Senate, by the Majority Leader, on the first 
day of session ending after receipt of the language 
and such reform bill shall be referred to the appro-
priate committee of Congress under paragraph (2). 
If the reform bill is not introduced in accordance 
with the preceding sentence, the reform bill may be