Payer State Transparency Act of 2021
Bill: H.R.1964 | Sponsor: Rep. Foster, Bill (D-IL)
Policy area: Taxation

Summary:
Payer State Transparency Act of 2021
This bill requires the Bureau of Economic Analysis of the Department of Commerce to calculate the federal tax burden of each state for each calendar year. It also requires the Office of Management and Budget to calculate the total amount of federal outlays received by each state in each fiscal year.

To assess the State by State impact of Federal taxation and spending.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payer State Transparency Act of 
2021''.

SEC. 2. CALCULATION OF FEDERAL TAX BURDENS AND OUTLAYS.

    (a) State by State Calculation of Federal Tax Burdens.--
            (1) In general.--The Secretary of Commerce, acting through 
        the Director of the Bureau of Economic Analysis, shall 
        calculate the Federal tax burden of each State for each 
        calendar year.
            (2) Calculation of federal tax burden.--For purposes of 
        calculating the Federal tax burden of each State under 
        paragraph (1), the Secretary shall--
                    (A) treat Federal taxes paid by an individual as a 
                burden on the State in which such individual resides; 
                and
                    (B) treat Federal taxes paid by a legal business 
                entity as a burden on each State in which economic 
                activity of such entity is performed in the same 
                proportion that the economic activity of such entity in 
                such State bears to the economic activity of such 
                entity in all the States.
    (b) State by State Calculation of Federal Outlays.--
            (1) In general.--The Director of the Office of Management 
        and Budget, in coordination with the Council of Economic 
        Advisers and the Secretary of the Treasury, shall calculate the 
        total amount of Federal outlays received by each State in each 
        fiscal year.
            (2) Treatment of contract awards.--For purposes of 
        calculating the amount of Federal outlays received by a State 
        under paragraph (1), a Federal contract award shall be treated 
        as a Federal outlay received by each State in which performance 
        under the award takes place in the same proportion that such 
        performance in such State bears to such performance in all the 
        States.
    (c) State Defined.--In this section the term ``State'' means each 
of the several States.

SEC. 3. JOINT REPORT.

    Not later than the date that is 180 days after the beginning of 
each calendar year, the Secretary of Commerce and the Director of the 
Office of Management and Budget shall--
            (1) jointly submit to Congress a report containing the 
        results of the calculations described in section 2 with respect 
        to such calendar year; and
            (2) publish the report on a publicly accessible website of 
        the Bureau of Economic Analysis.
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