I 
111TH CONGRESS 
2D SESSION 
H. R. 5536 
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 
JUNE 16, 2010 
Mr. FLAKE introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on the Budget, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
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 ‘‘Debt Buy-Down Act’’. 
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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 adjusted income tax liability of 
an individual for any taxable year is the income tax liabil-
ity of the individual for the taxable year determined under 
section 6096(b), reduced by any amount designated under 
section 6096(a).’’. 
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(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. 9511. 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 used by the Secretary for 
purposes of paying at maturity, or to redeem or buy before 
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maturity, any obligation of the Federal Government in-
cluded in the public debt (other than an obligation held 
by the Federal Old-Age and Survivors Insurance Trust 
Fund, or the Department of Defense Military Retirement 
Fund). Any obligation which is paid, redeemed, or bought 
with amounts from the Public Debt Reduction 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. 9511. 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 inserting 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 
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any) under sections 251, 252, and 253, and under section 
5(b) of the Statutory Pay-As-You-Go Act of 2010, but 
after any sequestration required by those sections, there 
shall be a sequestration equivalent to the estimated aggre-
gate amount designated under section 6097 of the Inter-
nal Revenue Code of 1986 for the last taxable year ending 
one year before the beginning of that session of Congress, 
as estimated by the Department of the Treasury on Octo-
ber 1 and as modified by the total of— 
‘‘(1) any amounts by which net discretionary 
spending is reduced by legislation below the discre-
tionary spending limits enacted after the enactment 
of this section related to the fiscal year subject to 
the sequestration (or, in the absence of such limits, 
any net deficit change from the baseline amount cal-
culated under section 257; and 
‘‘(2) the net deficit change that has resulted 
from all direct spending legislation enacted after the 
enactment of this section related to the fiscal year 
subject to the sequestration, as estimated by OMB. 
If the reduction in spending under paragraphs (1) and (2) 
for a fiscal year is greater than the estimated aggregate 
amount designated under section 6097 of the Internal 
Revenue Code of 1986 respecting that fiscal year, then 
there shall be no sequestration under this section. 
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‘‘(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 to the old-age 
and survivors insurance program established 
under title II of the Social Security Act; 
‘‘(B) reduce retired or retainer pay payable 
to a member or former member of the uni-
formed services; or 
‘‘(C) reduce payments for net interest (all 
of major functional category 900).’’. 
(b) REPORTS.—Section 254 of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended— 
(1) in subsection (a), by adding at the end of 
the table the following new item: 
‘‘October 1 .....................................
Department of Treasury report to 
Congress estimating amount of in-
come tax designated pursuant to 
section 6097 of the Internal Rev-
enue Code of 1986.’’. 
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(2) in subsection (c)(1), by inserting ‘‘, and se-
questration to reduce the public debt,’’ after ‘‘se-
questration’’; 
(3) in subsection (c), by redesignating para-
graph (5) as paragraph (6) and by inserting after 
paragraph (4) the following new paragraph: 
‘‘(5) REPORTS ON SEQUESTRATION TO REDUCE 
THE PUBLIC DEBT.—The preview reports shall set 
forth for the budget year estimates for each of the 
following: 
‘‘(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 (f), by redesignating para-
graphs (4) and (5) as paragraphs (5) and (6), re-
spectively, and by inserting after paragraph (3) the 
following new paragraph: 
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‘‘(4) REPORTS ON SEQUESTRATION TO REDUCE 
THE PUBLIC DEBT.—The final reports shall contain 
all of the information contained in the public debt 
taxation designation report required on October 1.’’. 
(c) CONFORMING AMENDMENT.—The table of con-
tents in section 250(a) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended by inserting 
after the item relating to section 253 the following new 
item: 
‘‘Sec. 253A. Sequestration to reduce the public debt.’’. 
(d) 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. 
Æ 
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