Title: RELIEF Act of 2020
Policy area: Taxation

Summary:
Reinvestment to Ensure a Livable Income for Every Family Act of 2020 or the RELIEF Act of 2020
This bill expresses the sense of Congress with respect to COVID-19 (i.e., the coronavirus disease 2019) and its impact on the health of Americans and the U.S. economy.
The bill allows an individual taxpayer a refundable tax credit equal to $1,000 ($2,000 for joint returns) beginning in 2020. The taxpayer must be 18 years of age in 2020, a resident of the United States, and not a dependent of another taxpayer. A dependent child under age 18 shall receive a $500 credit amount. The credit is denied to certain top income earners.
The Internal Revenue Service must establish an expedited process to assist taxpayers in applying for such credit.
The Congressional Budget Office must report annually to Congress on alternative fiscal policies to improve readiness for future economic downturns caused by depressions, pandemics, and climate change catastrophes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6290 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6290

To provide economic stimulus through advanced refundable tax credits to 
  all individuals during the COVID-19 crisis, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2020

 Ms. Omar (for herself and Ms. Norton) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To provide economic stimulus through advanced refundable tax credits to 
  all individuals during the COVID-19 crisis, and for other purposes.

    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 ``Reinvestment to Ensure a Livable 
Income for Every Family Act of 2020'' or the ``RELIEF Act of 2020''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) COVID-19 has contributed to major disruptions to the 
        United States society and economy, putting the health and 
        financial well-being of many Americans at risk;
            (2) direct economic stimulus such as advanced refundable 
        tax credits, referred to as universal emergency rebates in this 
        Act, can help bring much needed relief to people who need 
        short-term payments now in order to get by during this crisis;
            (3) these direct payments should supplement the immediate, 
        substantial expansion of existing social insurance programs 
        including but not limited to unemployment insurance, 
        supplemental nutrition assistance program, Medicaid, as well as 
        relief for small businesses and other emergency economic 
        measures;
            (4) as soon as possible and not later than two weeks after 
        the date of the enactment of this Act, the Secretary of the 
        Treasury, in consultation with the Commissioner of the Social 
        Security Administration and the Commissioner of the Internal 
        Revenue Service, must establish a program for sending direct 
        emergency rebates, in the form of electronic and paper 
        payments, on a monthly basis, for every individual residing in 
        the United States and its territories;
            (5) every qualifying adult over the age of 18 would receive 
        $1,000 and every qualifying dependent child under the age of 18 
        would receive $500;
            (6) only the top 1 percent of income earners would have 
        post taxes on these benefits in the next filing season and the 
        rest of Americans would not face any tax penalties or extra 
        costs, and so would be held harmless for any overpayments or 
        other delivery errors; and
            (7) these advanced refundable tax credits would be 
        transferred every month until the COVID-19 pandemic is formally 
        declared and certified as ended from the Secretary of the 
        Treasury and the Secretary of Health and Human Services.

SEC. 3. ESTABLISHMENT OF 2020 UNIVERSAL EMERGENCY REBATES FOR 
              INDIVIDUALS.

    (a) In General.--Section 6429 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 6429. 2020 UNIVERSAL REBATES FOR INDIVIDUALS.

    ``(a) In General.--In the case of an eligible taxpayer, there shall 
be allowed as a credit against tax imposed by subtitle A for the first 
taxable year beginning in 2020 an amount equal to the lesser of--
            ``(1) net income tax liability, or
            ``(2) $1,000 ($2,000 in the case of a joint return).
    ``(b) Special Rules.--
            ``(1) In general.--In the case of an eligible taxpayer 
        described in paragraph (2)--
                    ``(A) the amount determined under subsection (a) 
                shall not be less than $1,000 ($2,000 in the case of a 
                joint return), and
                    ``(B) the amount determined under subsection (a) 
                (after application of subparagraph (A)) shall be 
                increased by the product of $500 multiplied by the 
                number of qualifying children (within the meaning of 
                section 24(c)) of the taxpayer.
            ``(2) Eligible taxpayer described.--A taxpayer is described 
        in this paragraph if the taxpayer--
                    ``(A) is at least 18 years of age as of December 
                31, 2020,
                    ``(B) is a resident of the United States, or
                    ``(C) is not a dependent of another taxpayer.
    ``(c) Treatment of Credit.--The credit allowed by subsection (a) 
shall be treated as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Coordination With Advance Refunds of Credit.--
            ``(1) In general.--The amount of credit which would (but 
        for this paragraph) be allowable under this section shall be 
        reduced (but not below zero) by the aggregate refunds and 
        credits made or allowed to the taxpayer under subsection (g). 
        Any failure to so reduce the credit shall be treated as arising 
        out of a mathematical or clerical error and assessed according 
        to section 6213(b)(1). Taxpayers would be held harmless.
            ``(2) Joint returns.--In the case of a refund or credit 
        made or allowed under subsection (g) with respect to a joint 
        return, half of such refund or credit shall be treated as 
        having been made or allowed to each individual filing such 
        return.
    ``(e) Advance Refunds and Credits.--
            ``(1) In general.--Each individual who was an eligible 
        individual for such individual's first taxable year beginning 
        in 2019 shall be treated as having made a payment against the 
        tax imposed by chapter 1 for such first taxable year in an 
        amount equal to the advance refund amount for such taxable 
        year.
            ``(2) Advance refund amount.--For purposes of paragraph 
        (1), the advance refund amount is the amount that would have 
        been allowed as a credit under this section for such first 
        taxable year if this section (other than subsection (f) and 
        this subsection) had applied to such taxable year.
            ``(3) Timing of payments.--The Secretary shall, subject to 
        the provisions of this title, refund or credit any overpayment 
        attributable to this section as rapidly as possible on a 
        monthly basis and a pro rata amount for partial universal 
        emergency rebate period in the first month of the 
        implementation of this Act. No refund or credit shall be made 
        or allowed under this subsection after the COVID-19 outbreak is 
        over, as declared by the Secretary of the Treasury and the 
        Secretary of Health and Human Services lifting designations of 
        national economic turmoil and public health emergency, 
        respectively.
            ``(4) Pro rata amounts.--The pro rata amount for each 
        partial universal emergency rebate period shall be calculated 
        by multiplying the monthly amount for a full universal 
        emergency rebate that would be paid to the beneficiary based on 
        household size for such a period by the percentage calculated 
        by dividing the number of days of the partial universal 
        emergency rebate period by the number of days of the month.
            ``(5) Congressional extension of payments.--The last cycle 
        of payments will come up in the following quarter after the 
        COVID-19 pandemic is certified to be over by the Secretary of 
        the Treasury and the Secretary of Health and Human Services. 
        Congress will have until such quarter is done to reexamine and 
        decide if there is still further economic need to extend these 
        payments.
            ``(6) No interest.--No interest shall be allowed on any 
        overpayment attributable to this section.''.
    (b) Treatment of Possessions.--
            (1) Payment to possessions.--
                    (A) Mirror code possession.--The Secretary of 
                Treasury shall make a payment to each possession of the 
                United States with a mirror code tax system in an 
                amount equal to the loss to that possession. Such 
                amount shall be determined by the information provided 
                by the Government of the respective possession.
                    (B) Other possessions.--The Secretary of Treasury 
                shall make a payment to each possession of the United 
                States which does not have a mirror code tax system in 
                an amount estimated by the Secretary of the Treasury as 
                being equal to the aggregate benefits that would have 
                been provided to residents of such possession if a 
                mirror code tax system had been in effect in such 
                possession. The preceding sentence shall not apply with 
                respect to any possession of the United States unless 
                such possession has a plan, which has been approved by 
                the Secretary of the Treasury, under which such 
                possession will promptly distribute such payment to the 
                residents of such possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 6428 of the Internal Revenue Code of 
        1986 (as amended by this section) to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of the amendments 
                made by this section; or
                    (B) who is eligible for payment under a plan 
                described in paragraph (1)(B).
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the North Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code system'' means, with 
                respect to any possession in the United States, the 
                income tax system of such possession if the income tax 
                lability of the residents of such possession under such 
                system is determined by reference to the income tax 
                laws of the United States as if such possession were 
                the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 6428 of the Internal Revenue Code of 1986 
                (as amended by this section).
    (c) Refunds Disregarded in the Administration of Federal Programs 
and Federally Assisted Programs.--Any credit or refund allowed or made 
to any individual by reason of section 6248 of the Internal Revenue 
Code of 1986 (as amended by this section) or by reason of subsection 
(c) of this section shall not be taken into account as resources for 
the enacted month and the following months until funds are formally 
halted by decree from the Departments of the Treasury and the Health 
and Human Services, for purposes of determining eligibility of such 
individual or any other individual for benefits or assistance, under 
any Federal program or under any State or local program financed in 
whole or in part with Federal funds.
    (d) Appropriations To Carry Out Rebates.--
            (1) In general.--Immediately upon the enactment of this 
        Act, the following sums are appropriated, out of any money in 
        the Treasury not otherwise appropriated, for the fiscal year 
        ending September 30, 2020.
                    (A) Department of the treasury.--
                            (i) For an additional amount for 
                        ``Department of the Treasury--Financial 
                        Management Service--Salaries and Expenses'', 
                        $76,370,000, to remain available until 
                        September 30, 2021.
                            (ii) For an additional amount for 
                        ``Department of the Treasury--Internal Revenue 
                        Service--Operations Support'', $180,185,000, to 
                        remain available until September 30, 2021.
                            (iii) For an additional amount for 
                        ``Department of the Treasury--Internal Revenue 
                        Service--Taxpayer Services'', $65,300,000, to 
                        remain available until September 30, 2021.
                    (B) Social security administration.--For an 
                additional amount for ``Social Security 
                Administration--Limitation on Administrative 
                Expenses'', $39,000,000, to remain available until 
                September 30, 2021.
            (2) Reports.--No later than 15 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a plan to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate detailing the expected use of the funds provided 
        by paragraph (1)(A). Beginning 90 days after enactment of this 
        Act, the Secretary of the Treasury shall submit a quarterly 
        report to the Committees on Appropriations of the House of 
        Representatives and the Senate detailing the actual expenditure 
        of funds provided in paragraph (1)(A) and the expected 
        expenditure of such funds in the subsequent quarter.

SEC. 4. ADDITIONAL APPLICATION PROCESSES.

    The Secretary of the Treasury shall establish an expedited process 
by which individuals may provide necessary information to apply for and 
streamline access to temporary payments for universal emergency rebates 
outside the annual tax return process utilizing--
            (1) information from the beneficiary's most recent tax 
        return if the beneficiary has filed previously and such return 
        is for 2018 or 2019; and
            (2) any additional or alternative information submission 
        deemed necessary by the Secretary of the Treasury to facilitate 
        application and prompt delivery of the universal emergency 
        rebates.

SEC. 5. TREATMENT OF UNIVERSAL EMERGENCY REBATES FOR INCOME TAX 
              PURPOSES.

    Notwithstanding any other provision of law, no amount received as a 
universal emergency rebate shall be treated as income for the purpose 
of calculating Federal, State, or local tax liability.

SEC. 6. POST-TAXES ON HIGH-INCOME EARNERS.

    (a) In General.--There is hereby imposed a tax on 2020 Universal 
Emergency Rebates for top income earners for tax year 2020 equal to 100 
percent of the applicable amount.
            (1) Applicable amount.--The term ``applicable amount'' 
        shall be lesser of--
                    (A) the amount paid to a taxpayer under section 3; 
                or
                    (B) 5 percent of the amount by which the taxpayer's 
                adjusted gross income exceeds the threshold amount.
            (2) Threshold amount.--The term ``threshold amount'' shall 
        be--
                    (A) $500,000 in the case of a taxpayer making a 
                joint return under section 6103 or a surviving spouse 
                (as defined in section 2(a)); or
                    (B) $250,000 in the case of a married taxpayer (as 
                defined in section 7703) filing a separate return \1/2\ 
                the dollar amount under (a).
    (b) Tax Mechanism.--The Secretary of the Treasury, in consultation 
with the Commissioner of the Internal Revenue Service, shall establish 
a system to record, collect, and notify top 1-percent income earners of 
taxes needing to be paid on their emergency rebates.

SEC. 7. REPORTS REGARDING LONG-TERM ECONOMIC RESILIENCY TOOLS.

    Not later than 365 days after the date of enactment of this Act, 
and annually thereafter, the Director of the Congressional Budget 
Office, in consultation with the Secretary of Treasury and Chair of the 
Federal Reserve, shall submit to Congress a report on how the United 
States Government could establish and implement alternative fiscal 
stimulus and economic stabilization policies, such as guaranteed 
income, to improve readiness for future extreme downturn caused by 
depressions, pandemics, and climate change catastrophes.
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