‘‘(2)(A) The Commissioner of Social Security shall
establish a program under which recipients of monthly in-
surance benefits under this title may elect to have the
Commissioner, in lieu of certification of payment of bene-
fits to the recipient pursuant to section 205(i), certify to
the Managing Trustee that all or a designated portion of
such benefits be transferred to the general fund of the
Treasury as a gift which the Managing Trustee is author-
ized, as Secretary of the Treasury, to accept as a gift
under subsection (a)(1)(A) of section 3113 of title 31,
United States Code (relating to accepting gifts for reduc-
ing the public debt).
‘‘(B) Amounts to which an election under subpara-
graph (A) applies shall not be includible in gross income
for purposes of the Internal Revenue Code of 1986. No
deduction shall be allowed under such Code with respect
to any amount which is not includible in gross income by
reason of the preceding sentence.’’
SEC. 5. DONATION OF MILITARY RETIREMENT BENEFITS
FOR PURPOSES OF REDUCING THE FEDERAL
DEFICIT.
(a) IN GENERAL.—Chapter 71 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 1413. Donations for purposes of reducing the pub-
lic debt
‘‘(a) The Secretary concerned shall establish a pro-
gram under which a member or former member of the
armed forces under the jurisdiction of the Secretary who
is entitled to receive retired or retainer pay may elect that
all or a designated portion of such pay for any month be
transferred to the general fund of the Treasury as a gift
to reduce the public debt. Any such election may be re-
voked at any time.
‘‘(b) For any month for which an election under sub-
section (a) is in effect, the Secretary concerned shall with-
hold from the retired or retainer pay of the person making
the election the amount designated by that person in such
election and shall transfer the amount so withheld to the
Secretary of the Treasury.
‘‘(c) The Secretary of the Treasury is authorized to
accept any amount transferred to the Secretary under this
section as a gift under subsection (a)(1)(A) of section
3113 of title 31 (relating to accepting gifts for reducing
the public debt).
‘‘(d) Amounts to which an election under subsection
(a) applies shall not be includible in gross income for pur-
poses of the Internal Revenue Code of 1986. No deduction
shall be allowed under such Code with respect to any
amount which is not includible in gross income by reason
of the preceding sentence.’’
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1413. Donations for purposes of reducing the public debt.’’.
SEC. 6. DONATION OF VETERANS’ DISABILITY COMPENSA-
TION FOR PURPOSES OF REDUCING THE FED-
ERAL DEFICIT.
(a) IN GENERAL.—Chapter 53 of title 38, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 5320. Donations of compensation for purposes of
reducing the public debt
‘‘(a) The Secretary shall establish a program under
which a veteran who is entitled to compensation may elect
that all or a designated portion of such compensation for
any month be transferred to the general fund of the Treas-
ury as a gift to reduce the public debt. Any such election
may be revoked at any time.
‘‘(b) For any month for which an election under sub-
section (a) is in effect, the Secretary shall withhold from
the compensation payable to the veteran making the elec-
tion the amount designated by the veteran in such election
and shall transfer the amount so withheld to the Secretary
of the Treasury.
‘‘(c) The Secretary of the Treasury is authorized to
accept any amount transferred to the Secretary under this
section as a gift under subsection (a)(1)(A) of section
3113 of title 31 (relating to accepting gifts for reducing
the public debt).
‘‘(d) Amounts to which an election under subsection
(a) applies shall not be includible in gross income for pur-
poses of the Internal Revenue Code of 1986. No deduction
shall be allowed under such Code with respect to any
amount which is not includible in gross income by reason
of the preceding sentence.’’
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘5320. Donations of compensation for purposes of reducing the public debt.’’.
SEC. 7. BUDGETARY TREATMENT OF SAVINGS RESULTING
FROM THIS ACT.
Savings resulting from the enactment of this Act
shall not be considered for purposes of estimates made for
this Act under section 252(d) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
Æ