SEC. 707. RESCISSION OF HEALTH INSURANCE REFORM IM-
PLEMENTATION FUNDS. 
Of the funds made available by section 1005(b) of 
the Health Care and Education Reconciliation Act of 2010 
(Public Law 111–152; 42 U.S.C. 18121(b)), the unobli-
gated balance is rescinded. 
SEC. 708. TAXPAYER-GENERATED DEFICIT REDUCTION. 
(a) DESIGNATION OF INCOME TAX PAYMENTS TO 
REDUCE THE DEFICIT.— 
(1) DESIGNATION.—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 ON INCOME TAX 
RETURNS FOR REDUCTION OF DEFICIT 
‘‘Sec. 6097. Designation for reduction of the deficit. 
‘‘SEC. 6097. DESIGNATION FOR REDUCTION OF THE DEF-
ICIT. 
‘‘(a) IN GENERAL.—Every individual, regardless of 
income tax liability for the taxable year, may designate 
that an amount (not less than $1 and not more than $10) 
shall be paid over for the purpose of reducing the deficit 
of the United States. In the case of a joint return of hus-
band and wife, each spouse may so designate an amount. 
‘‘(b) INCOME TAX LIABILITY.—For purposes of sub-
section (a), the income tax liability of an individual for 
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any taxable year is the amount of the tax imposed by 
chapter 1 on such individual for such taxable year (as 
shown on his return), reduced by the sum of the credits 
(as shown in his return) allowable under part IV of sub-
chapter A of chapter 1 (other than subpart C thereof). 
‘‘(c) MANNER AND TIME OF DESIGNATION.—Rules 
similar to the rules of section 6096(c) shall apply for pur-
poses of this section, except that the designation shall be 
accompanied by the following statement: ‘The Federal 
budget will be reduced by an amount equal to ten times 
the amount you elect in the box.’. 
‘‘(d) AMOUNT INCREASE.—In the case of each tax-
able year beginning after 2011, the maximum dollar 
amount that may be designated under subsection (a) shall 
be increased by $1. In the case of a joint return of hus-
band and wife, such amount shall increase by $2 each tax-
able year.’’. 
(2) 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 PAYMENTS TO REDUCE THE 
DEFICIT.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply to taxable years beginning 
after December 31, 2010. 
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(b) TAXPAYER-GENERATED
SEQUESTRATION
OF 
FEDERAL SPENDING TO REDUCE THE DEFICIT.— 
(1) SEQUESTRATION
TO
REDUCE
DEFICIT.— 
Part C of the Balanced Budget and Emergency Def-
icit Control Act of 1985 is amended by inserting 
after section 253 the following new section: 
‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE DEFICIT. 
‘‘(a) SEQUESTRATION.— 
‘‘(1) TIMING.—Within 15 calendar days after 
the date Congress adjourns to end a session, and on 
the same day as sequestration (if any) under sec-
tions 251, 252, and 253, but after any sequestration 
required by those sections, there shall be a seques-
tration to eliminate the deficit equivalent to the 
amount calculated under paragraph (2). 
‘‘(2) CALCULATION.— 
‘‘(A) OMB CALCULATION.—Before October 
1st of each calendar year, OMB shall calculate 
the total amount designated under section 6097 
of the Internal Revenue Code of 1986. 
‘‘(B) FEDERAL SPENDING REDUCTION.— 
In accordance with the deadline under para-
graph (1), OMB shall apply an across the board 
reduction in Federal spending in an amount 
equal to the product of— 
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‘‘(i) the amount calculated under sub-
paragraph (A); and 
‘‘(ii) 10. 
‘‘(3) CARRYOVER.—Any amounts not calculated 
by OMB by the October 1st deadline, as set forth 
in subparagraph (2)(A), shall be applied to the fol-
lowing fiscal year Federal spending reduction pursu-
ant to 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 so reduced shall be done in a manner that 
makes such reductions permanent. 
‘‘(2) EXEMPT ACCOUNTS.—The following pro-
grams shall be exempt from reduction under any 
order issued under this section: 
‘‘(A) Benefits payable under the old-age, 
survivors, and disability insurance program es-
tablished under title II of the Social Security 
Act. 
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‘‘(B) Benefits payable under section 3(a), 
3(f)(3), 4(a), or 4(f) of the Railroad Retirement 
Act of 1974. 
‘‘(C) Benefits payable under title 18 of the 
Social Security Act. 
‘‘(D) The rate of pay of any judge or jus-
tice appointed pursuant to article III of the 
Constitution of the United States. 
‘‘(E) Veterans’ benefits listed under sec-
tions 255(b) and 255(f) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 
U.S.C. 905(b), 905(f)). 
‘‘(c) EFFECTIVE DATE.—This section shall apply to 
calender years beginning after December 31, 2010.’’. 
(2) REPORTS.—Section 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 
is amended— 
(A) in subsection (a), by adding at the end 
of the table the following new item: 
‘‘October 1 .......................
OMB report estimating amount of income tax des-
ignated pursuant to section 6097 of the Internal 
Revenue Code of 1986.’’. 
(B) in subsection (c)(1), by inserting ‘‘, 
and sequestration to reduce the deficit,’’ after 
‘‘sequestration’’; 
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