I
103D CONGRESS
1ST SESSION
H. R. 429
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 5, 1993
Mr. WALKER (for himself, Mr. GINGRICH, Mr. BARTON of Texas, Mr. BLILEY,
Mr. CAMP, Mr. COBLE, Mr. CRAPO, Mr. DOOLITTLE, Mr. DORNAN, Mr.
EWING, Mr. FAWELL, Mr. GEKAS, Mr. GOSS, Mr. HANCOCK, Mr.
HEFLEY, Mr. KINGSTON, Mr. KOLBE, Mr. LEWIS of Florida, Mr.
MCCOLLUM, Mr. NUSSLE, Mr. OXLEY, Mr. PACKARD, Mr. RAVENEL, Mr.
ROHRABACHER, Mr. SANTORUM, Mr. THOMAS of Wyoming, Mr. UPTON,
Mr. ZELIFF, and Mr. ZIMMER) introduced the following bill; which was
referred jointly to the Committees on Ways and Means and Government
Operations
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
of tax imposed by chapter 1 for the taxable year. The des-
ignation shall be made on the first page of the return or
on the page bearing the taxpayer’s signature.
‘‘(c) ADJUSTED INCOME TAX LIABILITY.—For pur-
poses of this section, the term ‘adjusted income tax liabil-
ity’ means income tax liability (as defined in section
6096(b)) reduced by any amount designated under section
6096 (relating to designation of income tax payments to
Presidential Election Campaign Fund).’’
(b) CLERICAL AMENDMENT.—The table of parts for
such subchapter A is amended by adding at the end the
following new item:
‘‘Part IX. Designation for reduction of public debt.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 3. PUBLIC DEBT REDUCTION TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end the following sec-
tion:
‘‘SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Public Debt Reduction Trust Fund’,
consisting of any amount appropriated or credited to the
Trust Fund as provided in this section or section 9602(b).
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Public Debt Reduction Trust Fund
amounts equivalent to the amounts designated under sec-
tion 6097 (relating to designation for public debt reduc-
tion).
‘‘(c) EXPENDITURES.—Amounts in the Public Debt
Reduction Trust Fund shall be available only for purposes
of paying at maturity, or to redeem or buy before matu-
rity, any obligation of the Federal Government included
in the public debt. Any obligation which is paid, redeemed,
or bought with amounts from such Trust Fund shall be
canceled and retired and may not be reissued.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter is amended by adding at the end the
following new item:
‘‘Sec. 9512. Public Debt Reduction Trust Fund.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts received after the date
of the enactment of this Act.
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 before the
beginning of that session of Congress, as estimated by the
Department of the Treasury on May 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 (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 en-
acted appropriations less any 1995 sequesters) and (2) the
net deficit change that has resulted from direct spending
legislation.
‘‘(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,
survivors, and disability insurance program es-
tablished 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 before the
item relating to August 10 the following:
‘‘May 1 . . . Department of Treasury report to Con-
gress estimating amount of income tax designated pursu-
ant 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 May 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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