To stimulate the economy, provide for a sound United States dollar by defining a value for the dollar, to remove the authority of Federal Reserve banks to pay earnings on certain balances maintained at such banks, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dollar Bill Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Article I, section 8 of the Constitution of the United 
        States provides that the Congress shall have Power to coin 
        money, regulate the value thereof, and of foreign coin, and fix 
        the standard of weights and measures.
            (2) Congress effectively delegated the power to regulate 
        the value of United States money and foreign money to the 
        Federal Reserve System via the Federal Reserve Act of 1913.
            (3) The value of the United States dollar has fallen 
        dramatically relative to gold, crude oil, other real 
        commodities and major foreign currencies.
            (4) The value of the United States dollar has become 
        unstable and uncertain.
            (5) The Board of Governors of the Federal Reserve System 
        has not produced a stable and reliable value for the United 
        States dollar.
            (6) The Board of Governors of the Federal Reserve System 
        cannot reasonably be expected to produce a stable and reliable 
        value for the United States dollar.
            (7) An unstable dollar slows the growth of the economy by 
        increasing the cost of capital, increasing the risks attendant 
        to long-term capital investment, and increasing the effective 
        rate of the corporate income tax.
            (8) An unstable dollar reduces the real earnings of 
        American workers.
            (9) An unstable dollar reduces the real value of financial 
        assets held by the public.
            (10) An unstable dollar reduces the real value of pension 
        plans and retirement accounts upon which Americans depend for 
        their security.
            (11) An unstable dollar damages the economic and political 
        standing of the United States in the world community.
            (12) An unstable dollar gives rise to anxiety, uncertainty, 
        and risk among the financial markets and the public.

SEC. 3. DIRECTIVES TO THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE 
              SYSTEM.

    (a) In General.--Before the end of the 90-day period beginning on 
the date of the enactment of this Act, the Board of Governors of the 
Federal Reserve System shall make the value of the U.S. dollar equal to 
the price of gold on the exchange operated by the Commodities Exchange, 
Inc. (COMEX) of the New York Mercantile Exchange, Inc. and maintain the 
value of the United States dollar at this level.
    (b) Target.--In regulating the value of the United States dollar, 
the Board of Governors of the Federal Reserve System shall not conduct 
open market operations indirectly, as in the current practice of 
targeting the Federal Funds rate.
    (c) Promotion of Stable and Effective Financial Markets.--The Board 
of Governors of the Federal Reserve System shall use the banking and 
bank regulatory powers of the Board to maintain and promote stable and 
effective financial markets during and after the transition to a 
defined value for the United States dollar.

SEC. 4. TAX DEPRECIATION.

    Effective January 1, 2011, all entities that depreciate capital 
assets for tax purposes shall be entitled to 100 percent expensing of 
all capital investment for tax purposes in the year that the investment 
is made.

SEC. 5. DIRECTIVE TO THE CONGRESSIONAL BUDGET OFFICE.

    In addition to the scoring that the Congressional Budget Office 
will do of the tax changes provided in this Act in the normal course of 
events, the Congressional Budget Office shall also calculate the impact 
on Federal revenues on a present value basis. This calculation shall be 
done in the manner that such calculations are done by the Social 
Security Trustees, and shall take into account the following:
            (1) That first year expensing of capital investment 
        accelerates, but does not change the total amount of the 
        depreciation that taxpayers take based upon their investments.
            (2) Capital investments by businesses have historically 
        earned much higher returns than the interest rate on government 
        bonds.

SEC. 6. CONFLICT OF LAWS PROVISION.

    In the event that any provisions of this Act are found to be in 
conflict with those of the Full Employment and Balanced Growth Act of 
1978, the provisions of this Act shall supersede the provisions of such 
Act to the extent of the conflict.

SEC. 7. REMOVAL OF FEDERAL RESERVE BANK AUTHORITY TO PAY EARNINGS ON 
              RESERVES.

    Section 19(b)(12) of the Federal Reserve Act (12 U.S.C. 461(b)(12)) 
is amended--
            (1) in the heading of such paragraph, by striking 
        ``Earnings'' and inserting ``No earnings'';
            (2) in subparagraph (A), by striking ``may receive earnings 
        to be paid by the Federal Reserve bank at least once each 
        calendar quarter, at a rate or rates not to exceed the general 
        level of short-term interest rates'' and inserting ``may not 
        receive earnings paid by the Federal Reserve bank'';
            (3) by striking subparagraph (B); and
            (4) by redesignating subparagraph (C) as subparagraph (B).

Summary: Dollar Bill Act of 2011 - Requires the Board of Governors of the Federal Reserve System to: (1) make the value of the U.S. dollar equal to price of gold on the exchange operated by the Commodities Exchange, Inc. (COMEX) of the New York Mercantile Exchange, Inc.; and (2) maintain that value at this level.

Prohibits the Board, in regulating the value of the U.S. dollar, from conducting open market operations indirectly, as in the current practice of targeting the federal funds rate.

Requires the Board to use its banking and bank regulatory powers to maintain and promote stable and effective financial markets during and after the transition to a defined value for the U.S. dollar.

Entitles all entities that depreciate capital assets for tax purposes to 100% expensing of all capital investment for tax purposes in the year that the investment is made.

Requires the Congressional Budget Office (CBO), in addition to the scoring CBO will do of the tax changes provided in this Act, to calculate the impact on federal revenues on a present value basis.

Amends the Federal Reserve Act to remove Federal Reserve Bank authority to pay earnings on reserves.