127 
(43) Section 9702(a) is amended by striking 
paragraph (4). 
(44) Section 9705(a) is amended by striking 
paragraph (4) and by redesignating paragraph (5) 
as paragraph (4). 
(45) Section 9706(d)(2)(A) is amended by 
striking ‘‘6103’’ and inserting ‘‘605(e)’’. 
(46) Section 9707 is amended by striking sub-
section (f). 
(47) Section 9712(d) is amended by striking 
paragraph (5) and by redesignating paragraph (6) 
as paragraph (5). 
(48) Section 9803(a) is amended by striking 
‘‘(as defined in section 414(f))’’. 
TITLE III—OTHER MATTERS 
SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED 
FEDERAL TAXES. 
(a) APPROPRIATIONS.—Appropriations for any ex-
penses of the Internal Revenue Service including proc-
essing tax returns for years prior to the repeal of the taxes 
repealed by title I of this Act, revenue accounting, man-
agement, transfer of payroll and wage data to the Social 
Security Administration for years after fiscal year 2017 
shall not be authorized. 
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128 
(b) RECORDS.—Federal records related to the admin-
istration of taxes repealed by title I of this Act shall be 
destroyed by the end of fiscal year 2017, except that any 
records necessary to calculate Social Security benefits 
shall be retained by the Social Security Administration 
and any records necessary to support ongoing litigation 
with respect to taxes owed or refunds due shall be retained 
until final disposition of such litigation. 
(c) CONFORMING AMENDMENTS.—Section 7802 is 
amended— 
(1) by striking subsections (a) and (b) and by 
redesignating subsections (c) and (d) as subsections 
(a) and (b), 
(2) by striking ‘‘Internal Revenue Service’’ each 
place it appears and inserting ‘‘Department of the 
Treasury’’, and 
(3) by striking ‘‘Commissioner’’ or ‘‘Commis-
sioner of Internal Revenue’’ each place they appear 
and inserting ‘‘Secretary’’. 
(d) EFFECTIVE DATE.—The amendments made by 
subsection (c) shall take effect on January 1, 2017. 
SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES. 
(a) IN GENERAL.—Section 7801 (relating to the au-
thority of the Department of the Treasury) is amended 
by adding at the end the following: 
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129 
‘‘(d) EXCISE TAX BUREAU.—There shall be in the 
Department of the Treasury an Excise Tax Bureau to ad-
minister those excise taxes not administered by the Bu-
reau of Alcohol, Tobacco and Firearms. 
‘‘(e) SALES TAX BUREAU.—There shall be in the De-
partment of the Treasury a Sales Tax Bureau to admin-
ister the national sales tax in those States where it is re-
quired pursuant to section 404, and to discharge other 
Federal duties and powers relating to the national sales 
tax (including those required by sections 402, 403, and 
405). The Office of Revenue Allocation shall be within the 
Sales Tax Bureau.’’. 
(b) 
ASSISTANT
GENERAL
COUNSELS.—Section 
7801(b)(2) is amended to read as follows: 
‘‘(2) ASSISTANT
GENERAL
COUNSELS.—The 
Secretary of the Treasury may appoint, without re-
gard to the provisions of the civil service laws, and 
fix the duties of not more than 5 assistant general 
counsels.’’. 
SEC. 303. SALES TAX INCLUSIVE SOCIAL SECURITY BENE-
FITS INDEXATION. 
Subparagraph (D) of section 215(i)(1) of the Social 
Security Act (42 U.S.C. 415(i)(1)) (relating to cost-of-liv-
ing increases in Social Security benefits) is amended to 
read as follows: 
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‘‘(D)(i) the term ‘CPI increase percentage’, 
with respect to a base quarter or cost-of-living quar-
ter in any calendar year, means the percentage 
(rounded to the nearest one-tenth of 1 percent) by 
which the Consumer Price Index for that quarter (as 
prepared by the Department of Labor) exceeds such 
index for the most recent prior calendar quarter 
which was a base quarter under subparagraph 
(A)(ii) or, if later, the most recent cost-of-living 
computation quarter under subparagraph (B); 
‘‘(ii) if the Consumer Price Index (as so pre-
pared) does not include the national sales tax paid, 
then the term ‘CPI increase percentage’, with re-
spect to a base quarter or cost-of-living quarter in 
any calendar year, means the percentage (rounded 
to the nearest one-tenth of 1 percent) by which the 
product of— 
‘‘(I) the Consumer Price Index for that 
quarter (as so prepared), and 
‘‘(II) the national sales tax factor, 
exceeds such index for the most recent prior cal-
endar quarter which was a base quarter under sub-
paragraph (A)(ii) or, if later, the most recent cost 
of living computation quarter under subparagraph 
(B); and 
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‘‘(iii) the national sales tax factor is equal to 
one plus the quotient that is— 
‘‘(I) the sales tax rate imposed by section 
101 of the Internal Revenue Code of 2013, di-
vided by 
‘‘(II) the quantity that is one minus such 
sales tax rate.’’. 
TITLE 
IV—SUNSET 
OF 
SALES 
TAX IF SIXTEENTH AMEND-
MENT NOT REPEALED 
SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH 
AMENDMENT NOT REPEALED. 
If the Sixteenth Amendment to the Constitution of 
the United States is not repealed before the end of the 
7-year period beginning on the date of the enactment of 
this Act, then all provisions of, and amendments made by, 
this Act shall not apply to any use or consumption in any 
year beginning after December 31 of the calendar year 
in which or with which such period ends, except that the 
Sales Tax Bureau of the Department of the Treasury shall 
not be terminated until 6 months after such December 31. 
Æ 
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