I
103D CONGRESS
1ST SESSION
H. R. 2019
To amend the Internal Revenue Code of 1986 to improve revenue collection
and to provide that a taxpayer conscientiously opposed to participation
in war may elect to have such taxpayer’s income, estate, or gift tax
payments spent for nonmilitary purposes, to create the United States
Peace Tax Fund to receive such tax payments, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 6, 1993
Mr. JACOBS (for himself, Mr. KOPETSKI, and Ms. PELOSI) introduced the fol-
lowing bill; which was referred jointly to the Committees on Ways and
Means, Education and Labor, and Foreign Affairs
A BILL
To amend the Internal Revenue Code of 1986 to improve
revenue collection and to provide that a taxpayer con-
scientiously opposed to participation in war may elect
to have such taxpayer’s income, estate, or gift tax pay-
ments spent for nonmilitary purposes, to create the Unit-
ed States Peace Tax Fund to receive such tax payments,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That this Act may be cited as the ‘‘United States Peace
Tax Fund Act’’.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—The Congress finds that for a signifi-
cant minority of Americans, sincere conscientious objec-
tion to participation in war in any form means that such
Americans cannot in conscience pay the portion of their
taxes that would support military expenditures.
(b) POLICY.—It is the policy of the Congress—
(1) to improve revenue collections and to allow
conscientious objectors to pay their full tax liability
without violating their moral, ethical, or religious be-
liefs;
(2) to reduce the present administrative and ju-
dicial burden created by conscientious objectors who
violate tax laws rather than violate their consciences;
(3) to recognize conscientious objector status
with regard to the payment of taxes for military pur-
poses; and
(4) to provide a mechanism for congressional
appropriations of such funds for nonmilitary pur-
poses.
SEC. 3. UNITED STATES PEACE TAX FUND.
(a) CREATION OF TRUST FUND.—There is hereby es-
tablished within the Treasury of the United States a spe-
cial trust fund to be known as the ‘‘United States Peace
Tax Fund’’ (hereinafter referred to as the ‘‘Fund’’). The
Fund shall consist of such amounts as may be transferred
to the Fund as provided in this section.
(b) TRANSFER TO FUND OF AMOUNTS EQUIVALENT
TO CERTAIN TAXES.—
(1) IN GENERAL.—There are hereby transferred
to the Fund amounts equivalent to the sum of the
amounts designated during the fiscal year by indi-
viduals under sections 2210, 2506, and 6099 of the
Internal Revenue Code of 1986 for payment into the
Fund. Such amounts shall be deposited into the
Fund and shall be available only for the purposes
provided in this Act.
(2) METHOD
OF
TRANSFER.—The amounts
transferred by paragraph (1) shall be transferred at
least monthly from the general fund of the Treasury
to the Fund on the basis of estimates by the Sec-
retary of the Treasury of the amounts, referred to
in paragraph (1), received in the Treasury. Proper
adjustments shall be made in the amounts subse-
quently transferred to the extent that prior esti-
mates were in excess of or less than the amounts re-
quired to be transferred.
(3) REPORT.—It shall be the duty of the Sec-
retary of the Treasury to report to the Committees
on Appropriations of the House of Representatives
and the Senate each year on the total amount trans-
ferred into the Fund during the preceding fiscal
year. Such report shall be printed in the Congres-
sional Record upon receipt by the committees.
SEC. 4. INCOME TAX PAYMENTS TO UNITED STATES PEACE
TAX FUND.
(a) IN GENERAL.—Subchapter A of chapter 61 of the
Internal Revenue Code of 1986 (relating to information
and records) is amended by adding at the end thereof the
following new part:
‘‘PART IX—DESIGNATION OF INCOME TAX PAY-
MENTS FOR TRANSFER TO UNITED STATES
PEACE TAX FUND
‘‘Sec. 6099. Designation by individuals.
‘‘SEC. 6099. DESIGNATION BY INDIVIDUALS.
‘‘(a) IN GENERAL.—Every eligible individual (other
than a nonresident alien) whose income tax liability for
any taxable year is $1 or more may designate that such
individual’s income tax payment for such year shall be
paid into the United States Peace Tax Fund established
by section 3 of the United States Peace Tax Fund Act.
‘‘(b) DEFINITIONS.—As used in this section—
‘‘(1) ELIGIBLE INDIVIDUAL.—
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means an individual who by reason of
religious training and belief is conscientiously
opposed to participation in war in any form,
and who—
‘‘(i) has been exempted or discharged
from combatant service and training in the
Armed Forces of the United States as a
conscientious objector under section 6(j) of
the Military Selective Service Act (50
U.S.C. App. 456(j)), or corresponding law,
or
‘‘(ii) certified in a statement in a
questionnaire return made under section
6039F that such individual is conscien-
tiously opposed to participation in war in
any form within the meaning of section
6(j) of such Act.
‘‘(B) VERIFICATION.—
‘‘(i) QUESTIONNAIRE
RETURN
RE-
CEIPT.—Any taxpayer who makes a des-
ignation under subsection (a) shall attach
the questionnaire return receipt provided
under section 6039F(b) to such taxpayer’s
return of tax.
‘‘(ii) ADDITIONAL INFORMATION MAY
BE
REQUIRED.—The Secretary may re-
quire any taxpayer who makes a designa-
tion under subsection (a) to provide such
additional information as may be necessary
to verify such taxpayer’s status as an eligi-
ble individual.
‘‘(C) DENIAL
OF
DESIGNATION.—If the
Secretary determines that a taxpayer who
makes the designation provided for by sub-
section (a) is not an eligible individual and is
not entitled to make such designation, then the
Secretary, upon written notice to the taxpayer
stating the reasons for denial, may deny the
designation. The taxpayer may challenge the
Secretary’s ruling by bringing an action in the
United States Tax Court or in the United
States district court for the district of such tax-
payer’s residence, for a declaratory judgment as
to whether the taxpayer is an eligible individual
and entitled to make such a designation.
‘‘(2) INCOME
TAX
LIABILITY.—The term ‘in-
come tax liability’ means the amount of the tax im-
posed by chapter 1 on a taxpayer for any taxable
year (as shown on such taxpayer’s tax return) re-
duced by the sum of—
‘‘(A) the credits (as shown in such return)
allowable under part IV of subchapter A of
chapter 1 (other than subpart C thereof), and
‘‘(B) the amount designated under section
6096.
‘‘(3) INCOME
TAX
PAYMENT.—The term ‘in-
come tax payment’ means the amount of taxes im-
posed by chapter 1 and paid by or withheld from a
taxpayer for any taxable year not in excess of such
taxpayer’s income tax liability.
‘‘(c) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year either—
‘‘(1) at the time of filing the return of the tax
imposed by chapter 1 for such taxable year, or
‘‘(2) at any other time (after the time of filing
the return of the tax imposed by chapter 1 for such
taxable year) specified in regulations prescribed by
the Secretary.
Such designation shall be made in such manner as the
Secretary prescribes by regulations except that, if such
designation is made at the time of filing the return of the
tax imposed by chapter 1 for such taxable year, such des-
ignation shall be made on the page bearing the taxpayer’s
signature.
‘‘(d) SPECIAL RULE IN THE CASE OF JOINT RE-
TURN.—In the case of an eligible individual filing a joint
return, upon the consent of such individual’s spouse, the
joint income tax payment may be designated pursuant to
subsection (a).
‘‘(e) EXPLANATION OF UNITED STATES PEACE TAX
FUND PURPOSES.—Each publication of general instruc-
tions accompanying an income tax return or a question-
naire return described in section 6039F shall include—
‘‘(1) an explanation of the purpose of the Unit-
ed States Peace Tax Fund,
‘‘(2) the criteria for determining whether an in-
dividual meets the requirements of section 6(j) of
the Military Selective Service Act (50 U.S.C. App.
456(j)), and
‘‘(3) an explanation of the process for making
the designation provided by this section.’’.
(b) CLERICAL AMENDMENTS.—The table of parts of
subchapter A of chapter 61 of the Internal Revenue Code
of 1986 is amended by adding at the end thereof the fol-
lowing:
‘‘Part IX.—Designation of income tax payments for transfer to
United States Peace Tax Fund.’’.
(c) DESIGNATION INFORMATION.—
(1) Subpart A of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986
(relating to information and returns) is amended by
adding at the end thereof the following new section:
‘‘SEC. 6039F. UNITED STATES PEACE TAX FUND DESIGNA-
TION INFORMATION.
‘‘(a) QUESTIONNAIRE RETURN.—Every taxpayer who
makes a designation provided by section 6099(a) for any
taxable year shall make a questionnaire return during
such year for the purpose of determining whether the tax-
payer is an eligible individual (within the meaning of sec-
tion 6099(b)(1)). The questionnaire return shall request
the taxpayer to certify such taxpayer’s beliefs about par-
ticipation in war, the source or genesis of such beliefs, and
how the beliefs affect the taxpayer’s life.
‘‘(b) QUESTIONNAIRE RETURN RECEIPT.—Upon re-
ceipt of the questionnaire return, the Secretary shall issue
a receipt to the taxpayer indicating timely filing of such
return.’’.
(2) The table of sections for such subpart is
amended by adding at the end thereof the following
new item:
‘‘Sec. 6039F. United States Peace Tax Fund designation infor-
mation.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to—
(1) taxable years beginning after December 31,
1993, and
(2) any taxable year ending before January 1,
1994, for which the time for filing a claim for re-
fund or credit of an overpayment of tax has not ex-
pired on the date of the enactment of this Act.
(e) RULES APPLICABLE TO RETURNS OF TAX FOR
TAXABLE YEARS ENDING BEFORE JANUARY 1, 1994.—
(1) PENALTIES FOR FAILURE TO PAY TAX.—
Any civil or criminal penalty imposed on an individ-
ual for failing or refusing to pay all or a part of the
tax imposed by chapter 1 of the Internal Revenue
Code of 1986 shall be vacated and set aside if the
person upon whom the penalty was imposed—
(A) pays the tax due (with interest), and
(B) establishes to the satisfaction of the
Secretary of the Treasury that the failure or re-
fusal to pay was based upon such person’s con-
scientious objection to participation in war in
any form within the meaning of section
6099(b)(1)(A) of such Code (defining eligible
individual).
(2) DISPOSITION OF AMOUNTS COLLECTED.—
There are hereby transferred to the Fund amounts
equivalent to the sum of the amounts paid into the
Treasury by persons under the provisions of para-
graph (1). Such amounts shall be deposited into the
Fund and shall be available only for the purposes
provided in this Act.
SEC. 5. ESTATE TAX PAYMENTS TO UNITED STATES PEACE
TAX FUND.
(a) IN GENERAL.—Subchapter C of chapter 11 of the
Internal Revenue Code of 1986 is amended by adding at
the end thereof the following new section:
‘‘SEC. 2210. DESIGNATION OF ESTATE TAX PAYMENTS FOR
TRANSFER TO UNITED STATES PEACE TAX
FUND.
‘‘An eligible individual (within the meaning of section
6099(b)(1)) may elect that the tax imposed by section
2001 on the taxable estate of such individual shall be
transferred when paid to the United States Peace Tax
Fund established under section 3 of the United States
Peace Tax Fund Act. The election may be made by the
executor or administrator of the estate under written au-
thority of the decedent. Such election shall be made in
such manner as the Secretary shall by regulations pre-
scribe.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter C of chapter 11 of the Internal Revenue
Code of 1986 is amended by adding at the end thereof
the following:
‘‘Sec. 2210. Designation of estate tax payments for transfer to
United States Peace Tax Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to the estates of dece-
dents dying after December 31, 1993.
SEC. 6. GIFT TAX PAYMENTS TO UNITED STATES PEACE
TAX FUND.
(a) IN GENERAL.—Subchapter A of chapter 12 of the
Internal Revenue Code of 1986 is amended by adding at
the end thereof the following new section:
‘‘SEC. 2506. DESIGNATION OF GIFT TAX PAYMENTS FOR
TRANSFER TO UNITED STATES PEACE TAX
FUND.
‘‘An eligible individual (within the meaning of section
6099(b)(1)) may elect that the tax imposed by section
2501 shall be transferred when paid to the United States
Peace Tax Fund established under section 3 of the United
States Peace Tax Fund Act. The election shall be made
in such manner as the Secretary shall by regulations pre-
scribe.’’.
(b) CLERICAL AMENDMENT.—The table of contents
for subchapter A of chapter 12 of the Internal Revenue
Code of 1986 is amended by adding at the end thereof
the following:
‘‘Sec. 2506. Designation of gift tax payments for transfer to Unit-
ed States Peace Tax Fund.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to gifts made after
December 31, 1993.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
(a) CERTIFICATION BY COMPTROLLER GENERAL.—
As soon after the close of each fiscal year as may be prac-
ticable, the Comptroller General shall determine and cer-
tify to the Congress and to the President the percentage
of actual appropriations made for a military purpose with
respect to such fiscal year. The certification shall be pub-
lished in the Congressional Record upon receipt by the
Congress.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
hereby authorized to be appropriated each year a certain
portion of the Fund for obligation and expenditure in ac-
cordance with the provisions of this Act. Such portion is
equal to an amount which is the sum of—
(1) the product of—
(A) all funds transferred to the Fund in
each fiscal year, times
(B) the percentage determined under sub-
section (a) for such fiscal year, plus
(2) all funds in the Fund previously authorized
to be appropriated under this subsection but not yet
appropriated pursuant to this Act.
Funds remaining in the Fund shall accrue interest accord-
ing to the prevailing rate in long-term Government bonds.
(c) SURPLUS COVERED INTO GENERAL FUND.—The
remaining portion of the Fund after the application of
subsection (b) is hereby covered into the general fund of
the Treasury of the United States. No part of the funds
transferred to the general fund under this subsection shall
be appropriated for any expenditures, or otherwise obli-
gated, for a military purpose.
SEC. 8. ELIGIBLE APPROPRIATIONS.
(a) PAYMENTS.—Funds appropriated pursuant to the
authorization under section 7(b) shall be available, as pro-
vided in the appropriation Acts, to make grants, loans,
or other arrangements for eligible activities described in
subsection (c).
(b) ELIGIBLE ACTIVITIES.—The following activities
are eligible to receive funds under subsection (a)
(1) Special Supplemental Food Program for
Women, Infants and Children (WIC);
(2) Head Start;
(3) United States Institute of Peace; and
(4) Peace Corps;
(c) DISPLACEMENT OF OTHER FUNDS.—It is the in-
tent of this Act that the Fund shall not operate to release
funds for military expenditures which, were it not for the
existence of the Fund, would otherwise have been appro-
priated for nonmilitary expenditures.
SEC. 9. DEFINITIONS.
For the purposes of this Act—
(1) The term ‘‘military purpose’’ means any ac-
tivity or program conducted, administered, or spon-
sored by an agency of the Government which affects
an augmentation of military forces, defensive and of-
fensive intelligence activities, or enhances the capa-
bility of any person or nation to wage war.
(2) The term ‘‘actual appropriations made for
a military purpose’’ includes, but is not limited to,
amounts appropriated by the United States in con-
nection with—
(A) the Department of Defense;
(B) the Central Intelligence Agency;
(C) the National Security Council;
(D) the Selective Service System;
(E) activities of the Department of Energy
that have a military purpose;
(F) activities of the National Aeronautics
and Space Administration that have a military
purpose;
(G) foreign military aid; and
(H) the training, supplying, or maintaining
of military personnel, or the manufacture, con-
struction, maintenance, or development of mili-
tary weapons, installations, or strategies.
(3) The term ‘‘agency’’ means each authority of
the Government of the United States, whether or
not it is within or subject to review by another agen-
cy, but does not include—
(A) the Congress; or
(B) the courts of the United States.
(4) The term ‘‘person’’ includes an individual,
partnership, corporation, association, or public or
private organization other than an agency.
SEC. 10. SEPARABILITY.
If any section, subsection, or other provision of this
Act, or the application thereof to any person or cir-
cumstance is held invalid, the remainder of this Act and
the application of such section, subsection, or other provi-
sion to other persons or circumstances shall not be af-
fected thereby.
Æ
HR 2019 IH——2