I 
112TH CONGRESS 
1ST SESSION H. R. 1125 
To establish a fee on transactions which would eliminate the national debt 
and replace the income tax on individuals. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2011 
Mr. FATTAH introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on the 
Budget, Rules, and Appropriations, for a period to be subsequently deter-
mined 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 fee on transactions which would eliminate 
the national debt and replace the income tax on individuals. 
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 ‘‘Debt Free America 
Act’’. 
SEC. 2. FINDINGS; PURPOSES. 
(a) FINDINGS.—The Congress finds the following: 
(1) The current tax structure creates economic 
distortions that limit growth and job creation. 
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(2) The estimated cost of compliance to tax-
payers is five billion hours and approximately $200 
billion. 
(3) Restructuring the tax code will promote eco-
nomic prosperity. 
(4) Replacing existing Federal taxes with a fee 
on transactions eliminates systemic inefficiency that 
plagues the current tax code. 
(5) The United States, from its beginning in 
1790 to the present, has been free of a national debt 
for only two years, 1834 and 1835. 
(6) The national debt has grown from $75.5 
million in 1790 to $9.4 trillion as of December 
2010. 
(7) Expressed as a percentage of gross domestic 
product (GDP), the national debt reached a high of 
108.6 percent of GDP in 1946. 
(8) After 1946, the national debt as a percent-
age of GDP declined, reaching a low of 32.5 percent 
in 1981. 
(9) The large budget deficits of the 1980s and 
1990s reversed this trend and pushed the percentage 
to another high of 49.5 percent in 1993. 
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(10) The Federal budget surpluses from fiscal 
year 1998 to fiscal year 2001 were used to retire a 
portion of the publicly held national debt. 
(11) Between fiscal year 1997 and fiscal year 
2001, the publicly held portion of the national debt 
declined by more than $400 billion. 
(12) Since fiscal year 2002, a return to budget 
deficits has caused the debt to grow again. 
(b) PURPOSES.—The purpose of section 3 of this Act 
is to establish a fee on most transactions. Such fee— 
(1) is different than a sales tax in that a sales 
tax is charged only on sales to the final consumer 
and the transaction fee would apply to intermediate 
users as well as end users, 
(2) is different than a value added tax (VAT), 
commonly used in European and other countries, in 
that a VAT is imposed only on a portion of a trans-
action’s value (roughly the difference between an 
item’s selling price and its cost) and the transaction 
fee would apply to the entire amount of the trans-
action, and 
(3) is intended to raise sufficient revenue to— 
(A) eliminate the national debt, which was 
$6.3 trillion in January 2009, during a period 
of 10 years and to phase out the income tax on 
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individuals, including interest payments on the 
national debt, which will total $1 trillion annu-
ally by 2020 under current fiscal policy, and 
will account for 17 percent of all Federal spend-
ing, and 
(B) provide incentives for private sector in-
vestment in capital goods such as manufac-
turing plants and facilities, clean energy gen-
eration, and infrastructure development, cre-
ating the economic conditions for increased cap-
ital stocks and greater economic output, leading 
to job growth and economic expansion. 
SEC. 3. IMPLEMENTATION OF A TRANSACTION FEE. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by inserting after chapter 
36 the following new chapter: 
‘‘CHAPTER 37—TRANSACTION FEE 
‘‘Sec. 4501. Imposition of transaction fee. 
‘‘SEC. 4501. IMPOSITION OF TRANSACTION FEE. 
‘‘(a) IN GENERAL.—There is hereby imposed on 
every specified transaction a fee in an amount equal to 
1 percent of the amount of such transaction. 
‘‘(b) SPECIFIED TRANSACTION.—For purposes of 
this chapter— 
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‘‘(1) IN GENERAL.—The term ‘specified trans-
action’ means any transaction that uses a payment 
instrument, including any check, cash, credit card, 
transfer of stock, bonds, or other financial instru-
ment. 
‘‘(2) EXCEPTIONS.—The term ‘specified trans-
action’ shall not include— 
‘‘(A) any transfer between accounts of the 
taxpayer, and 
‘‘(B) any deposit into a personal account 
of an individual. 
‘‘(3) TRANSACTION.—The term ‘transaction’ in-
cludes retail and wholesale sales, purchases of inter-
mediate goods, and financial and intangible trans-
actions. 
‘‘(c) LIABILITY FOR FEE.—Persons become liable for 
the fee at the moment the person exercises control over 
a piece of property or service, regardless of the payment 
method. 
‘‘(d) COLLECTION.—The fees will be collected by the 
seller or financial institution servicing the transaction and 
shall be paid over to the Secretary. In the case of a person 
who fails to collect and pay over the fee as required under 
this subsection, such person shall become liable for the fee 
not so collected and paid over. 
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‘‘(e) POTENTIAL EXCLUSIONS.—Subsection (a) shall 
not apply to transactions involving stock (and any options 
or derivatives with respect to stock) until— 
‘‘(1) such time as the United States enters into 
an international agreement that regulates domestic 
and international stock exchanges, or 
‘‘(2) the Secretary issues recommendations re-
garding the application of the fee as it applies to 
stock. 
‘‘(f) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section, includ-
ing regulations or other guidance which require reporting 
of such information as the Secretary determines appro-
priate to prevent under reporting of the amounts on which 
a fee is imposed by this section.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36 the following 
new item: 
‘‘CHAPTER 37. TRANSACTION FEE’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions in calendar years 
beginning after the date of the enactment of this Act. 
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SEC. 4. INCOME TAX CREDIT DURING PERIOD THAT TRANS-
ACTION FEE AND INDIVIDUAL INCOME TAX 
ARE IN EFFECT. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. CREDIT DURING PERIOD OF TRANSACTION FEE 
AND INDIVIDUAL INCOME TAX. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
1 percent of the taxpayer’s adjusted gross income. 
‘‘(b) PHASEOUT BASED ON ADJUSTED GROSS IN-
COME.—The credit allowed under subsection (a) for any 
taxable year shall be reduced (but not below zero) by an 
amount which bears the same ratio to the amount of such 
credit (determined without regard to this subsection) as— 
‘‘(1) the excess (if any) of the taxpayer’s ad-
justed gross income for such taxable year over 
$100,000 ($250,000 in the case of a joint return), 
bears to 
‘‘(2) $10,000 ($20,000 in the case of a joint re-
turn).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
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of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Credit during period of transaction fee and individual income tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning during 
calendar years beginning after the date of the enactment 
of this Act. 
SEC. 5. ESTABLISHMENT OF TASK FORCE. 
(a) IN GENERAL.—Title III of the Congressional 
Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended 
by adding at the end the following new section: 
‘‘ESTABLISHMENT OF TASK FORCE FOR RESPONSIBLE 
FISCAL ACTION 
‘‘SEC. 316. (a) DEFINITIONS.—In this section: 
‘‘(1) TASK
FORCE.—The term ‘Task Force’ 
means the Bipartisan Task Force for Responsible 
Fiscal Action established under subsection (b)(1). 
‘‘(2) TASK
FORCE
BILL.—The term ‘Task 
Force bill’ means a bill consisting of the proposed 
legislative language of the Task Force recommended 
under subsection (b)(3)(B) and introduced under 
subsection (e)(1). 
‘‘(3) FISCAL IMBALANCE.—The term ‘fiscal im-
balance’ means the gap between the projected reve-
nues and expenditures of the Federal Government. 
‘‘(b) ESTABLISHMENT OF TASK FORCE.— 
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‘‘(1) ESTABLISHMENT.—There is established in 
the legislative branch a task force to be known as 
the ‘Bipartisan Task Force for Responsible Fiscal 
Action’. 
‘‘(2) PURPOSES.— 
‘‘(A) REVIEW.—The Task Force shall re-
view the fiscal imbalance of the Federal Govern-
ment, including— 
‘‘(i) analyses of projected Federal ex-
penditures; 
‘‘(ii) analyses of projected Federal 
revenues; and 
‘‘(iii) analyses of the current and 
long-term actuarial financial condition of 
the Federal Government. 
‘‘(B) 
IDENTIFY
FACTORS.—The 
Task 
Force shall identify factors that affect the long- 
term fiscal imbalance of the Federal Govern-
ment. 
‘‘(C) ANALYZE
POTENTIAL
COURSES
OF 
ACTION.—The Task Force shall analyze poten-
tial courses of action to address factors that af-
fect the long-term fiscal imbalance of the Fed-
eral Government. 
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‘‘(D) PROVIDE
RECOMMENDATIONS
AND 
LEGISLATIVE
LANGUAGE.—The Task Force 
shall provide recommendations and legislative 
language that will significantly improve the 
long-term fiscal imbalance of the Federal Gov-
ernment, including recommendations address-
ing— 
‘‘(i) Federal expenditures; 
‘‘(ii) Federal revenues; and 
‘‘(iii) the current and long-term actu-
arial financial condition of the Federal 
Government. 
‘‘(3) DUTIES.— 
‘‘(A) IN GENERAL.—The Task Force shall 
address the Nation’s long-term fiscal imbal-
ances, consistent with the purposes described in 
paragraph (2), and shall submit the report and 
recommendations required under subparagraph 
(B). 
‘‘(B) REPORT, RECOMMENDATIONS, AND 
LEGISLATIVE LANGUAGE.— 
‘‘(i) IN GENERAL.—Not earlier than 
November 1, 2011, and not later than No-
vember 18, 2011, the Task Force shall 
vote on a report that contains— 
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‘‘(I) a detailed statement of the 
findings, conclusions, and recommen-
dations of the Task Force; 
‘‘(II) the assumptions, scenarios, 
and alternatives considered in reach-
ing such findings, conclusions, and 
recommendations; and 
‘‘(III) proposed legislative lan-
guage to carry out such recommenda-
tions 
as 
described 
in 
paragraph 
(2)(D). 
‘‘(ii) APPROVAL OF REPORT.—The re-
port of the Task Force submitted under 
clause (i) shall require the approval of not 
fewer than 14 of the 18 members of the 
Task Force. 
‘‘(iii) ADDITIONAL VIEWS.—A member 
of the Task Force who gives notice of an 
intention to file supplemental, minority, or 
additional views at the time of final Task 
Force approval of the report under clause 
(ii), shall be entitled to not less than 3 cal-
endar days in which to file such views in 
writing with the staff director of the Task 
Force. Such views shall then be included in 
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the Task Force report and printed in the 
same volume, or part thereof, and their in-
clusion shall be noted on the cover of the 
report. In the absence of timely notice, the 
Task Force report may be printed and 
transmitted 
immediately 
without 
such 
views. 
‘‘(iv) TRANSMISSION OF REPORT.—No 
later than November 30, 2011, the Task 
Force shall submit the Task Force bill and 
final report to the President, the Vice 
President, the Speaker of the House, and 
the majority and minority leaders of both 
Houses. 
‘‘(v) REPORT TO BE MADE PUBLIC.— 
Upon the approval or disapproval of the 
Task Force report pursuant to clause (ii), 
the Task Force shall promptly make the 
full report, and a record of the vote, avail-
able to the public. 
‘‘(4) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The Task Force shall 
be composed of 18 members designated pursu-
ant to subparagraph (B). 
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‘‘(B) 
DESIGNATION.—Members 
of 
the 
Task Force shall be designated as follows: 
‘‘(i) The President shall designate 2 
members, one of whom shall be the Sec-
retary of the Treasury, and the other of 
whom shall be an officer of the executive 
branch. 
‘‘(ii) The majority leader of the Sen-
ate shall designate 4 members from among 
Members of the Senate. 
‘‘(iii) The minority leader of the Sen-
ate shall designate 4 members from among 
Members of the Senate. 
‘‘(iv) The Speaker of the House of 
Representatives shall designate 4 members 
from among Members of the House of 
Representatives. 
‘‘(v) The minority leader of the House 
of Representatives shall designate 4 mem-
bers from among Members of the House of 
Representatives. 
‘‘(C) CO-CHAIRS.— 
‘‘(i) IN GENERAL.—There shall be 2 
Co-Chairs of the Task Force. The Presi-
dent, majority leader of the Senate, and 
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Speaker of the House shall designate one 
Co-Chair among the members of the Task 
Force. The minority leader of the Senate 
and minority leader of the House shall des-
ignate the second Co-Chair among the 
members of the Task Force. The Co- 
Chairs shall be appointed not later than 14 
days after the date of enactment of this 
section. 
‘‘(ii) STAFF
DIRECTOR.—The Co- 
Chairs, acting jointly, shall hire the staff 
director of the Task Force. 
‘‘(D) DATE.—Members of the Task Force 
shall be designated by not later than 14 days 
after the date of enactment of this section. 
‘‘(E) PERIOD OF DESIGNATION.—Members 
shall be designated for the life of the Task 
Force. Any vacancy in the Task Force shall not 
affect its powers, but shall be filled not later 
than 14 days after the date on which the va-
cancy occurs in the same manner as the origi-
nal designation. 
‘‘(F) COMPENSATION.—Members of the 
Task Force shall serve without any additional 
compensation for their work on the Task Force. 
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However, members may be allowed travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and 
5703 of title 5, United States Code, while away 
from their homes or regular places of business 
in performance of services for the Task Force. 
‘‘(5) ADMINISTRATION.— 
‘‘(A) AUTHORITY
TO
ESTABLISH
RULES 
AND
REGULATIONS.—The Co-Chairs, in con-
sultation with the other members of the Task 
Force, may establish rules and regulations for 
the conduct of Task Force business, if such 
rules and regulations are not inconsistent with 
this section or other applicable law. 
‘‘(B) QUORUM.—Fourteen members of the 
Task Force shall constitute a quorum for pur-
poses of voting, meeting, and holding hearings. 
‘‘(C) VOTING.— 
‘‘(i) PROXY VOTING.—No proxy voting 
shall be allowed on behalf of the members 
of the Task Force. 
‘‘(ii) 
REPORT, 
RECOMMENDATIONS 
AND LEGISLATIVE LANGUAGE.— 
‘‘(I) DATES.—The Task Force 
may not vote on any version of the re-
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port, recommendations, or legislative 
language before the timing provided 
for in paragraph (3)(B)(i). 
‘‘(II) CONGRESSIONAL
BUDGET 
OFFICE
AND
JOINT
COMMITTEE
ON 
TAXATION ESTIMATES.—The Congres-
sional Budget Office and Joint Com-
mittee on Taxation shall provide esti-
mates of the Task Force report and 
recommendations (as described in 
subsection (b)(2)(D)) in accordance 
with section 308(a) and 201(f) of the 
Congressional Budget Act of 1974. 
The Task Force may not vote on any 
version of the report, recommenda-
tions, or legislative language unless a 
final estimate is available for consider-
ation by all the members at least 72 
hours prior to the vote. 
‘‘(D) HEARINGS.—The Task Force may, 
for the purpose of carrying out this section, 
hold such hearings, sit and act at such times 
and places, take such testimony, receive such 
evidence, and administer such oaths the Task 
Force considers advisable. 
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‘‘(c) EXPEDITED CONSIDERATION OF TASK FORCE 
RECOMMENDATIONS.— 
‘‘(1) INTRODUCTION.— 
‘‘(A) RECONVENING.— 
‘‘(i) IN THE HOUSE OF REPRESENTA-
TIVES.—Upon receipt of a report under 
subsection (b)(3)(B), the Speaker, if the 
House would otherwise be adjourned, shall 
notify the Members of the House that, 
pursuant to this section, the House shall 
convene not later than December 7, 2011. 
‘‘(ii) IN THE SENATE.— 
‘‘(I) CONVENING.—Upon receipt 
of 
a 
report 
under 
subsection 
(b)(3)(B), if the Senate has adjourned 
or recessed for more than 2 days, the 
majority leader of the Senate, after 
consultation with the minority leader 
of the Senate, shall notify the Mem-
bers of the Senate that, pursuant to 
this section, the Senate shall convene 
not later than December 7, 2011. 
‘‘(II) ADJOURNING.—No concur-
rent resolution adjourning the Senate 
for more than 3 days shall be in order 
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until the Senate votes on passage of 
the Task Force bill under paragraph 
(2)(B)(iv). 
‘‘(B) INTRODUCTION
OF
TASK
FORCE 
BILL.—The proposed legislative language con-
tained in the report submitted pursuant to sub-
section (b)(3)(B), upon receipt by the Congress, 
shall be introduced not later than December 7, 
2011, in the Senate and in the House of Rep-
resentatives by the majority leader of each 
House of Congress, for himself, the minority 
leader of each House of Congress, for himself, 
or any member of the House designated by the 
majority leader or minority leader. If the Task 
Force bill is not introduced in accordance with 
the preceding sentence in either House of Con-
gress, then any Member of that House may in-
troduce the Task Force bill on any day there-
after. Upon introduction, the Task Force bill 
shall be referred to the appropriate committees 
under subparagraph (C). 
‘‘(C) 
COMMITTEE
CONSIDERATION.—A 
Task Force bill introduced in either House of 
Congress shall be jointly referred to the com-
mittee or committees of jurisdiction and the 
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Committee on the Budget of that House, which 
committees shall report the bill without any re-
vision and with a favorable recommendation, an 
unfavorable recommendation, or without rec-
ommendation, not later than 7 calendar days 
after the date of introduction of the bill in that 
House, or the first day thereafter on which that 
House is in session. If any committee fails to 
report the bill within that period, that com-
mittee shall be automatically discharged from 
consideration of the bill, and the bill shall be 
placed on the appropriate calendar. 
‘‘(2) EXPEDITED PROCEDURES.— 
‘‘(A) FAST
TRACK
CONSIDERATION
IN 
HOUSE OF REPRESENTATIVES.— 
‘‘(i) 
PROCEEDING
TO
CONSIDER-
ATION.—It shall be in order, not later than 
2 days of session after the date on which 
a Task Force bill is reported or discharged 
from all committees to which it was re-
ferred, for the majority leader of the 
House of Representatives or the majority 
leader’s designee, to move to proceed to 
the consideration of the Task Force bill. It 
shall also be in order for any Member of 
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the House of Representatives to move to 
proceed to the consideration of the Task 
Force bill at any time after the conclusion 
of such 2-day period. All points of order 
against the motion are waived. Such a mo-
tion shall not be in order after the House 
has disposed of a motion to proceed on the 
Task Force bill. The previous question 
shall be considered as ordered on the mo-
tion to its adoption without intervening 
motion. The motion shall not be debatable. 
A motion to reconsider the vote by which 
the motion is disposed of shall not be in 
order. 
‘‘(ii) 
CONSIDERATION.—The 
Task 
Force bill shall be considered as read. All 
points of order against the Task Force bill 
and against its consideration are waived. 
The previous question shall be considered 
as ordered on the Task Force bill to its 
passage without intervening motion except 
100 hours of debate equally divided and 
controlled by the proponent and an oppo-
nent, and any motion to limit debate. A 
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motion to reconsider the vote on passage of 
the Task Force bill shall not be in order. 
‘‘(iii) APPEALS.—Appeals from deci-
sions of the chair relating to the applica-
tion of the Rules of the House of Rep-
resentatives to the procedure relating to a 
Task Force bill shall be decided without 
debate. 
‘‘(iv) 
APPLICATION
OF
HOUSE 
RULES.—Except to the extent specifically 
provided in paragraph (2)(A), consider-
ation of a Task Force bill shall be gov-
erned by the Rules of the House of Rep-
resentatives. It shall not be in order in the 
House of Representatives to consider any 
Task Force bill introduced pursuant to the 
provisions of this subsection under a sus-
pension of the rules pursuant to Clause 1 
of House Rule XV, or under a special rule 
reported by the House Committee on 
Rules. 
‘‘(v) NO AMENDMENTS.—No amend-
ment to the Task Force bill shall be in 
order in the House of Representatives. 
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‘‘(vi) VOTE
ON
PASSAGE.—Imme-
diately following the conclusion of consider-
ation of the Task Force bill, the vote on 
passage of the Task Force bill shall occur 
without any intervening action or motion, 
requiring an affirmative vote of three-fifths 
of the Members, duly chosen and sworn. If 
the Task Force bill is passed, the Clerk of 
the House of Representatives shall cause 
the bill to be transmitted to the Senate be-
fore the close of the next day of session of 
the House. The vote on passage shall occur 
not later than December 23, 2011. 
‘‘(vii) VOTE.—The House Committee 
on Rules may not report a rule or order 
that would have the effect of causing the 
Task Force bill to be approved by a vote 
of less than three-fifths of the Members, 
duly chosen and sworn. 
‘‘(B) FAST TRACK CONSIDERATION IN SEN-
ATE.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
Rule XXII of the Standing Rules of the 
Senate, it is in order, not later than 2 days 
of session after the date on which a Task 
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Force bill is reported or discharged from 
all committees to which it was referred, for 
the majority leader of the Senate or the 
majority leader’s designee to move to pro-
ceed to the consideration of the Task 
Force bill. It shall also be in order for any 
Member of the Senate to move to proceed 
to the consideration of the Task Force bill 
at any time after the conclusion of such 2- 
day period. A motion to proceed is in order 
even though a previous motion to the same 
effect has been disagreed to. All points of 
order against the motion to proceed to the 
Task Force bill are waived. The motion to 
proceed is not debatable. The motion is not 
subject to a motion to postpone. A motion 
to reconsider the vote by which the motion 
is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consid-
eration of the Task Force bill is agreed to, 
the Task Force bill shall remain the unfin-
ished business until disposed of. 
‘‘(ii) DEBATE.—All points of order 
against the Task Force bill and against 
consideration of the Task Force bill are 
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waived. Consideration of the Task Force 
bill and of all debatable motions and ap-
peals in connection therewith shall not ex-
ceed a total of 100 hours. Debate shall be 
divided equally between the majority and 
minority leaders or their designees. A mo-
tion further to limit debate on the Task 
Force bill is in order, shall require an af-
firmative vote of three-fifths of the Mem-
bers duly chosen and sworn, and is not de-
batable. Any debatable motion or appeal is 
debatable for not to exceed 1 hour, to be 
divided equally between those favoring and 
those opposing the motion or appeal. All 
time used for consideration of the Task 
Force bill, including time used for quorum 
calls and voting, shall be counted against 
the total 100 hours of consideration. 
‘‘(iii) NO AMENDMENTS.—An amend-
ment to the Task Force bill, or a motion 
to postpone, or a motion to proceed to the 
consideration of other business, or a mo-
tion to recommit the Task Force bill, is 
not in order. 
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‘‘(iv) VOTE
ON
PASSAGE.—The vote 
on passage shall occur immediately fol-
lowing the conclusion of the debate on a 
Task Force bill, and a single quorum call 
at the conclusion of the debate if re-
quested. Passage shall require an affirma-
tive vote of three-fifths of the Members, 
duly chosen and sworn. The vote on pas-
sage shall occur not later than December 
23, 2011. 
‘‘(v) ADJOURNMENT.—If, by Decem-
ber 23, 2011, either House has failed to 
adopt a motion to proceed to the Task 
Force bill, paragraph (1)(A)(ii)(II) shall 
not apply. 
‘‘(vi) RULINGS
OF
THE
CHAIR
ON 
PROCEDURE.—Appeals from the decisions 
of the Chair relating to the application of 
the rules of the Senate, as the case may 
be, to the procedure relating to a Task 
Force bill shall be decided without debate. 
‘‘(C) RULES TO COORDINATE ACTION WITH 
OTHER HOUSE.— 
‘‘(i) REFERRAL.—If, before the pas-
sage by 1 House of a Task Force bill of 
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that House, that House receives from the 
other House a Task Force bill, then the 
Task Force bill of the other House shall 
not be referred to a committee and shall 
immediately be placed on the calendar. 
‘‘(ii) PROCEDURE.—If the Senate re-
ceives the Task Force bill passed by the 
House of Representatives before the Sen-
ate has voted on passage of the Task 
Force bill— 
‘‘(I) the procedure in the Senate 
shall be the same as if no Task Force 
bill had been received from House of 
Representatives; and 
‘‘(II) the vote on passage in the 
Senate shall be on the Task Force bill 
of the House of Representatives. 
‘‘(iii) TREATMENT
OF
TASK
FORCE 
BILL OF OTHER HOUSE.—If 1 House fails 
to introduce or consider a Task Force bill 
under this section, the Task Force bill of 
the other House shall be entitled to expe-
dited floor procedures under this section. 
‘‘(iv) TREATMENT
OF
COMPANION 
MEASURES IN THE SENATE.—If following 
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passage of the Task Force bill in the Sen-
ate, the Senate then receives the Task 
Force bill from the House of Representa-
tives, the House-passed Task Force bill 
shall not be debatable. The vote on passage 
of the Task Force bill in the Senate shall 
be considered to be the vote on passage of 
the Task Force bill received from the 
House of Representatives. 
‘‘(v) VETOES.—If the President vetoes 
the Task Force bill, debate on a veto mes-
sage in the Senate under this section shall 
be 1 hour equally divided between the ma-
jority and minority leaders or their des-
ignees. 
‘‘(3) SUSPENSION.—No motion to suspend the 
application of this subsection shall be in order in the 
Senate or in the House of Representatives.’’. 
(b) FUNDING.—From the amounts appropriated or 
made available and remaining unobligated under division 
A (other than under title X of division A) of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5), there is rescinded pro rata an aggregate amount equal 
to $9,000,000, which amount shall be made available with-
out need for further appropriation to the Bipartisan Task 
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Force for Responsible Fiscal Action to carry out the pur-
poses of the Bipartisan Task Force for Responsible Fiscal 
Action, and which shall remain available through fiscal 
year 2013. Not later than 14 days after the date of enact-
ment of this section, the Director of the Office of Manage-
ment and Budget shall administer the rescission and make 
available such amount to the Bipartisan Task Force for 
Responsible Fiscal Action. 
SEC. 6. REPEAL OF INCOME TAX ON INDIVIDUALS. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the following 
provisions: 
(1) Part I of subchapter A. 
(2) Subpart A of part IV of subchapter A. 
(3) Sections 31, 32, 35, 36, and 36A. 
(b) REPEAL OF ALTERNATIVE MINIMUM TAX FOR 
INDIVIDUALS.—Section 55 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new subsection: 
‘‘(f) 
EXEMPTION
FOR
NONCORPORATE
TAX-
PAYERS.—The tentative minimum tax for any taxpayer 
other than a corporation shall be zero.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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SEC. 7. PRIORITIZATION FOR REPAYMENT OF NATIONAL 
DEBT. 
To take into account the national security concerns 
of the United States, the Secretary of the Treasury, in 
consultation with the Secretary of State, shall prioritize 
the repayment of the national debt and shall take into ac-
count circumstances in which the Secretary of the Treas-
ury determines the early repayment of outstanding debt 
is detrimental to the fiscal stability of the United States. 
SEC. 8. STUDY AND REPORT. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with the Chairman of the Federal Reserve, 
shall— 
(1) analyze methods to prevent and relieve any 
distortions among economic sectors created by the 
implementation of this Act, 
(2) make recommendations regarding the appli-
cation of the transaction fee established under this 
Act to barter transactions which do not involve a 
payment instrument, 
(3) assess the transaction fee established under 
this Act as a tool of Federal fiscal policy, including 
an impact analysis on the elimination or retention of 
existing tax expenditures, incentives, penalties, and 
credits, including— 
(A) the earned income credit, 
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(B) the alternative minimum tax, 
(C) the child tax credit, and 
(D) the deduction for mortgage interest, 
(4) analyze the extent to which the transaction 
fee could offset the cost to the Federal Government 
of increasing discretionary and mandatory spending, 
particularly expenditures related to education, de-
fense, Social Security, Medicare, and Medicaid, 
(5) make recommendations with respect to the 
Internal Revenue Service, which— 
(A) assume the transition and grandfather-
ing of all existing personnel of the Internal Rev-
enue Service, 
(B) identify the elements of the current In-
ternal Revenue Service needed to administer the 
transaction fee, and 
(C) examine the feasibility of modifying 
the overall mission and jurisdiction of the Inter-
nal Revenue Service from one focused on tax 
law application to one focused on uncovering 
waste, fraud, and abuse throughout the Federal 
Government, and 
(6) make determinations and recommendations 
for methods of phasing out the income tax on indi-
viduals before its repeal under section 4 in a manner 
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which is consistent with the purposes described in 
section 2(b)(3). 
(b) REPORT.—The Secretary of the Treasury shall, 
not later than 1 year after the date of the enactment of 
this Act, submit to Congress a written report containing 
the results, determinations, and recommendations of the 
Secretary under subsection (a). 
Æ 
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