106TH CONGRESS
2D SESSION
H. R. 4199
AN ACT
To terminate the Internal Revenue Code of 1986.
106TH CONGRESS
2D SESSION
H. R. 4199
AN ACT
To terminate the Internal Revenue Code of 1986.
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 ‘‘Date Certain Tax Code
Replacement Act’’.
SEC. 2. PURPOSE.
The purpose of this Act is to set a date certain for
replacing the Internal Revenue Code of 1986 with a simple
and fair alternative.
SEC. 3. TERMINATION OF INTERNAL REVENUE CODE OF
1986.
(a) IN GENERAL.—No tax shall be imposed by the
Internal Revenue Code of 1986—
(1) for any taxable year beginning after Decem-
ber 31, 2004; and
(2) in the case of any tax not imposed on the
basis of a taxable year, on any taxable event or for
any period after December 31, 2004.
(b) EXCEPTION.—Subsection (a) shall not apply to
taxes imposed by—
(1) chapter 2 of such Code (relating to tax on
self-employment income);
(2) chapter 21 of such Code (relating to Fed-
eral Insurance Contributions Act); and
(3) chapter 22 of such Code (relating to Rail-
road Retirement Tax Act).
SEC. 4. NATIONAL COMMISSION ON TAX REFORM AND
SIMPLIFICATION.
(a) FINDINGS.—The Congress finds the following:
(1) The Internal Revenue Code of 1986 is over-
ly complex, imposes significant burdens on individ-
uals and businesses and the economy, is extremely
difficult for the Internal Revenue Service to admin-
ister, and is in need of fundamental reform and sim-
plification.
(2) Many of the problems encountered by tax-
payers in dealing with the Internal Revenue Service
could be eliminated or alleviated by fundamental re-
form and simplification.
(3) The Federal Government’s present fiscal
outlook for continuing and sustained budget sur-
pluses provides a unique opportunity for the Con-
gress to consider measures for fundamental reform
and simplification of the tax laws.
(4) Recent efforts to simplify or reform the tax
laws have not been successful due in part to the dif-
ficulty of developing broad-based, nonpartisan sup-
port for proposals to make such changes.
(5) Many of the problems with the Internal
Revenue Service stem from the overly complex tax
code the agency is asked to administer.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—To carry out the purposes of
this section, there is established within the legislative
branch a National Commission on Tax Reform and
Simplification (in this section referred to as the
‘‘Commission’’).
(2) COMPOSITION.—The Commission shall be
composed of 15 members, as follows:
(A) Three members appointed by the
President, two from the executive branch of the
Government and one from private life.
(B) Four members appointed by the ma-
jority leader of the Senate, one from Members
of the Senate and three from private life.
(C) Two members appointed by the minor-
ity leader of the Senate, one from Members of
the Senate and one from private life.
(D) Four members appointed by the
Speaker of the House of Representatives, one
from Members of the House and three from pri-
vate life.
(E) Two members appointed by the minor-
ity leader of the House of Representatives, one
from Members of the House and one from pri-
vate life.
(3) CHAIR.—The Commission shall elect a
Chair (or two Co-Chairs) from among its members.
(4) MEETINGS, QUORUMS, VACANCIES.—After
its initial meeting, the Commission shall meet upon
the call of the Chair (Co-Chairs, if elected) or a ma-
jority of its members. Nine members of the Commis-
sion shall constitute a quorum. Any vacancy in the
Commission shall not affect its powers, but shall be
filled in the same manner in which the original ap-
pointment was made. Any meeting of the Commis-
sion or any subcommittee thereof may be held in ex-
ecutive session to the extent that the Chair (Co-
Chairs, if elected) or a majority of the members of
the Commission or subcommittee determine appro-
priate.
(5) CONTINUATION OF MEMBERSHIP.—If—
(A) any individual who appointed a mem-
ber to the Commission by virtue of holding a
position described in paragraph (2) ceases to
hold such position before the report of the Com-
mission is submitted under subsection (g); or
(B) a member was appointed to the Com-
mission as a Member of Congress and the mem-
ber ceases to be a Member of Congress, or was
appointed to the Commission because the mem-
ber was not an officer or employee of any gov-
ernment and later becomes an officer or em-
ployee of a government, that member may con-
tinue as a member for not longer than the 30-
day period beginning on the date that such in-
dividual ceases to hold such position or such
member ceases to be a Member of Congress or
becomes such an officer or employee, as the
case may be.
(6) APPOINTMENT; INITIAL MEETING.—
(A) APPOINTMENT.—It is the sense of the
Congress that members of the Commission
should be appointed not more than 60 days
after the date of the enactment of this Act.
(B) INITIAL MEETING.—If, after 60 days
from the date of the enactment of this Act,
eight or more members of the Commission have
been appointed, members who have been ap-
pointed may meet and select the Chair (or Co-
Chairs) who thereafter shall have the authority
to begin the operations of the Commission, in-
cluding the hiring of staff.
(c) FUNCTIONS OF THE COMMISSION.—
(1) IN GENERAL.—The functions of the Com-
mission shall be—
(A) to conduct, for a period of not to ex-
ceed 18 months from the date of its first meet-
ing, the review described in paragraph (2); and
(B) to submit to the Congress a report of
the results of such review, including rec-
ommendations for fundamental reform and sim-
plification of the Internal Revenue Code of
1986, as described in subsection (g).
(2) REVIEW.—The Commission shall review—
(A) the present structure and provisions of
the Internal Revenue Code of 1986, especially
with respect to—
(i) its impact on the economy (includ-
ing the impact on savings, capital forma-
tion and capital investment);
(ii) its impact on families and the
workforce (including issues relating to dis-
tribution of tax burden);
(iii) the compliance cost to taxpayers;
and
(iv) the ability of the Internal Rev-
enue Service to administer such provisions;
(B) whether tax systems imposed under
the laws of other countries could provide more
efficient and fair methods of funding the rev-
enue requirements of the government;
(C) whether the income tax should be re-
placed with a tax imposed in a different manner
or on a different base; and
(D) whether the Internal Revenue Code of
1986 can be simplified, absent wholesale re-
structuring or replacement thereof.
(d) POWERS OF THE COMMISSION.—
(1) IN GENERAL.—The Commission or, on the
authorization of the Commission, any subcommittee
or member thereof, may, for the purpose of carrying
out the provisions of this section, hold such hearings
and sit and act at such times and places, take such
testimony, receive such evidence, and administer
such oaths, as the Commission or such designated
subcommittee or designated member may deem ad-
visable.
(2) CONTRACTING.—The Commission may, to
such extent and in such amounts as are provided in
appropriation Acts, enter into contracts to enable
the Commission to discharge its duties under this
section.
(3) ASSISTANCE FROM FEDERAL AGENCIES AND
OFFICES.—
(A) INFORMATION.—The Commission is
authorized to secure directly from any executive
department, bureau, agency, board, commission,
office, independent establishment, or instrumen-
tality of the Government, as well as from any
committee or other office of the legislative
branch, such information, suggestions, esti-
mates, and statistics as it requires for the pur-
poses of its review and report. Each such de-
partment, bureau, agency, board, commission,
office, establishment, instrumentality, or com-
mittee shall, to the extent not prohibited by
law, furnish such information, suggestions, esti-
mates, and statistics directly to the Commis-
sion, upon request made by the Chair (Co-
Chairs, if elected).
(B) TREASURY
DEPARTMENT.—The Sec-
retary of the Treasury is authorized on a non-
reimbursable basis to provide the Commission
with administrative services, funds, facilities,
staff, and other support services for the per-
formance of the Commission’s functions.
(C) 
GENERAL
SERVICES
ADMINISTRA-
TION.—The Administrator of General Services
shall provide to the Commission on a non-
reimbursable basis such administrative support
services as the Commission may request.
(D) JOINT
COMMITTEE
ON
TAXATION.—
The staff of the Joint Committee on Taxation
is authorized on a nonreimbursable basis to
provide the Commission with such legal, eco-
nomic, or policy analysis, including revenue esti-
mates, as the Commission may request.
(E) OTHER ASSISTANCE.—In addition to
the assistance set forth in subparagraphs (A),
(B), (C), and (D), departments and agencies of
the United States are authorized to provide to
the Commission such services, funds, facilities,
staff, and other support services as they may
deem advisable and as may be authorized by
law.
(5) POSTAL SERVICES.—The Commission may
use the United States mails in the same manner and
under the same conditions as departments and agen-
cies of the United States.
(6) GIFTS.—The Commission may accept, use,
and dispose of gifts or donations of services or prop-
erty in carrying out its duties under this section.
(e) STAFF OF THE COMMISSION.—
(1) IN
GENERAL.—The Chair (Co-Chairs, if
elected), in accordance with rules agreed upon by the
Commission, may appoint and fix the compensation
of a staff director and such other personnel as may
be necessary to enable the Commission to carry out
its functions without regard to the provisions of title
5, United States Code, governing appointments in
the competitive service, and without regard to the
provisions of chapter 51 and subchapter III or chap-
ter 53 of such title relating to classification and
General Schedule pay rates, except that no rate of
pay fixed under this subsection may exceed the
equivalent of that payable to a person occupying a
position at level V of the Executive Schedule under
section 5316 of title 5, United States Code. Any
Federal Government employee may be detailed to
the Commission without reimbursement from the
Commission, and such detailee shall retain the
rights, status, and privileges of his or her regular
employment without interruption.
(2) CONSULTANT SERVICES.—The Commission
is authorized to procure the services of experts and
consultants in accordance with section 3109 of title
5, United States Code, but at rates not to exceed the
daily rate paid a person occupying a position at level
IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(f) COMPENSATION AND TRAVEL EXPENSES.—
(1) COMPENSATION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), each member of the Com-
mission may be compensated at not to exceed
the daily equivalent of the annual rate of basic
pay in effect for a position at level IV of the
Executive Schedule under section 5315 of title
5, United States Code, for each day during
which that member is engaged in the actual
performance of the duties of the Commission.
(B) EXCEPTION.—Members of the Com-
mission who are officers or employees of the
United States or Members of Congress shall re-
ceive no additional pay on account of their serv-
ice on the Commission.
(2) TRAVEL
EXPENSES.—While away from
their homes or regular places of business in the per-
formance of services for the Commission, members
of the Commission shall be allowed travel expenses,
including per diem in lieu of subsistence, in the
same manner as persons employed intermittently in
the Government service are allowed expenses under
section 5703(b) of title 5, United States Code.
(g) REPORT OF THE COMMISSION; TERMINATION.—
(1) REPORT.—Not later than 18 months after
the date of the first meeting of the Commission, the
Commission shall submit a report to the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate. The
report of the Commission shall describe the results
of its review (as described in subsection (c)(2)), shall
make such recommendations for fundamental reform
and simplification of the Internal Revenue Code of
1986 as the Commission considers appropriate, and
shall describe the expected impact of such rec-
ommendations on the economy and progressivity and
general administrability of the tax laws.
(2) TERMINATION.—
(A) IN GENERAL.—The Commission, and
all the authorities of this section, shall termi-
nate on the date which is 90 days after the date
on which the report is required to be submitted
under paragraph (1).
(B) CONCLUDING ACTIVITIES.—The Com-
mission may use the 90-day period referred to
in subparagraph (A) for the purposes of con-
cluding its activities, including providing testi-
mony to committees of Congress concerning its
report and disseminating that report.
(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sums as may be nec-
essary for the activities of the Commission. Until such
time as funds are specifically appropriated for such activi-
ties, $2,000,000 shall be available from fiscal year 2001
funds appropriated to the Treasury Department, ‘‘Depart-
mental Offices’’ account, for the activities of the Commis-
sion, to remain available until expended.
SEC. 5. TIMING OF IMPLEMENTATION.
In order to ensure an easy transition and effective
implementation, the Congress hereby declares that any
new Federal tax system shall be approved by Congress in
its final form no later than July 4, 2004. If a new Federal
tax system is not so approved by July 4, 2004, then Con-
gress shall be required to vote to reauthorize the Internal
Revenue Code of 1986.
Passed the House of Representatives April 13, 2000.
Attest:
Clerk.