In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Student Dropout Prevention 
and Recovery Act of 2000''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Lowering the student dropout rate is one of the most 
        significant challenges facing educators today. Students must 
        stay in school in order to receive the education they need to 
        succeed in the new economy and contribute fully to American 
        society.
            (2) The ability of local educational agencies to lower the 
        student dropout rate has been inhibited by the lack of focus at 
        the Federal level and the limited availability of appropriate 
        dropout prevention-focused curriculum, instruction, 
        professional development, and administrative support services.
            (3) According to the National Dropout Prevention Network, 
        it is at the local and community level where school 
        improvements and change occur that will eventually have an 
        impact on the graduation rate of students. The focus of these 
        efforts should be concentrated on the most successful 
        strategies that research has identified as having an impact on 
        increasing the graduation rate. These strategies encompass--
                    (A) systemic renewal;
                    (B) community collaboration;
                    (C) professional development;
                    (D) family involvement;
                    (E) early childhood education;
                    (F) reading and writing programs;
                    (G) individualized instruction;
                    (H) instructional technologies;
                    (I) mentoring and tutoring;
                    (J) service learning;
                    (K) learning styles and multiple intelligences;
                    (L) violence prevention and conflict resolution;
                    (M) career education and workforce readiness;
                    (N) out-of-school experiences; and
                    (O) alternative public schooling.
            (4) The National Dropout Prevention Network has found that 
        the strategies described in paragraph (3) have been successful 
        in all school levels from K-12 in rural, suburban, or urban 
        centers. When schools or school districts develop a program 
        improvement plan that encompasses most or all of these 
        strategies, positive outcomes will result.
            (5) It is necessary to develop a number of model dropout 
        prevention programs to fully develop the effective strategies 
        listed above into comprehensive dropout prevention programs. 
        These model programs should be used as examples by schools 
        across the country that wish to implement similar programs. 
        Subsequently, a nationwide dropout prevention program, in order 
        to be effective, should be based on these model programs.
            (6) Dropout prevention and recovery programs which are 
        proven to be successful in lowering dropout rates need to be 
        disseminated to school and community leaders willing to adapt 
        and support these innovative programs in their schools and 
        community.

SEC. 3. SCHOOL DROPOUT PREVENTION GRANT PROGRAMS.

    Part C of title V of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7261 et seq.) is amended to read as follows:

           ``PART C--SCHOOL DROPOUT PREVENTION GRANT PROGRAMS

       ``Subpart 1--Model School Dropout Prevention Grant Program

``SEC. 5311. AUTHORIZATION.

    ``(a) In General.--The Director of the Office of Dropout Prevention 
and Program Completion shall award grants to public elementary schools, 
middle schools, and secondary schools that have established and are 
carrying out school dropout prevention programs to provide those 
schools with additional resources to develop such programs further, 
develop methods to assist other schools to implement similar programs, 
and provide for research on the effects of such programs on the student 
populations of the schools involved.
    ``(b) Duration.--A grant under subsection (a) shall be awarded for 
a period of not more than 5 years. A school that desires to continue to 
receive funding for the purposes described in subsection (a) shall 
apply for a grant under the national school dropout prevention grant 
program under subpart 2.

``SEC. 5312. REQUIRED ACTIVITIES.

    ``A school that receives a grant under section 5311 shall use 
amounts under the grant to establish and carry out, or further develop, 
school dropout prevention programs, intervention programs, and recovery 
programs, including as many of the following activities as possible: 
systemic renewal, community and family participation, professional 
development, early childhood education, reading and writing programs, 
alternative public schooling, individualized instruction, use of 
instructional technologies, mentoring and tutoring, service learning, 
instruction that recognizes that students learn in different ways 
(commonly referred to as `learning styles instruction'), violence 
prevention and conflict resolution, career education and workforce 
readiness, out-of-school experiences, and a comprehensive plan for 
dropout prevention.

``SEC. 5313. APPLICATION; SELECTION OF SCHOOLS; FISCAL AGENT.

    ``(a) Application.--
            ``(1) In general.--Each school desiring a grant under 
        section 5311 shall submit an application, after review by the 
        local educational agency of the school, to the Director at such 
        time, in such manner, and accompanied by such information as 
        the Director may require.
            ``(2) Contents.--A school desiring a grant under section 
        5311 shall submit an application, through the local educational 
        agency of the school under paragraph (1), that contains a 
        description of the current dropout prevention program of the 
        school.
    ``(b) Selection of Schools.--
            ``(1) Limitation.--The Director may award grants to not 
        more than 20 schools under section 5311. Such schools shall 
        have demonstrated success in establishing and carrying out 
        activities described in section 5312.
            ``(2) Allocation.--Grants awarded under section 5311 shall 
        be allocated among schools that meet the following 
        requirements:
                    ``(A) 4 elementary schools that have established 
                and are carrying out early childhood education 
                programs.
                    ``(B) 4 secondary schools that have established and 
                are carrying out academic intervention programs and 
                mediation programs.
                    ``(C) 4 secondary schools that have established and 
                are carrying out intervention programs and recovery 
                programs.
                    ``(D) 4 schools (either elementary, middle, or 
                secondary) that are located in rural school districts 
                and that have demonstrated success in establishing and 
                carrying out 12 or more of the activities described in 
                section 5312.
                    ``(E) 4 schools (either elementary, middle, or 
                secondary) that are located in urban school districts 
                and that have demonstrated success in establishing and 
                carrying out all of the activities described in section 
                5312.
            ``(3) Priority.--In awarding grants under section 5311, the 
        Director shall give priority to schools that have demonstrated 
        success in establishing and carrying out the highest number of 
        activities described in section 5312.
    ``(c) Fiscal Agent.--The local educational agency of the school 
shall act as the fiscal agent for the school and shall accept and 
administer the grant awarded to the school under section 5311, except 
that all funds shall be expended at the school level.

     ``Subpart 2--National School Dropout Prevention Grant Program

``SEC. 5321. AUTHORIZATION.

    ``(a) In General.--Beginning in the third year of the Model School 
Dropout Prevention Grant Program under subpart 1, the Director of the 
Office of Dropout Prevention and Program Completion shall award grants 
to public elementary schools, middle schools, and secondary schools to 
enable the schools to implement, or further carry out, effective, 
sustainable, and coordinated school dropout prevention programs.
    ``(b) Duration.--A grant under subsection (a) shall be awarded for 
a period of not less than 2 years but not more than 5 years.

``SEC. 5322. REQUIRED ACTIVITIES.

    ``A school that receives a grant under section 5321 shall use 
amounts under the grant to establish and carry out, or further develop, 
school dropout prevention programs, intervention programs, and recovery 
programs, including as many of the following activities as possible: 
systemic renewal, community and family participation, professional 
development, early childhood education, reading and writing programs, 
alternative public schooling, individualized instruction, use of 
instructional technologies, mentoring and tutoring, service learning, 
instruction that recognizes that students learn in different ways 
(commonly referred to as `learning styles instruction'), violence 
prevention and conflict resolution, career education and workforce 
readiness, out-of-school experiences, and a comprehensive plan for 
dropout prevention.

``SEC. 5323. APPLICATION; SELECTION OF SCHOOLS; FISCAL AGENT.

    ``(a) Application.--Each school desiring a grant under section 5321 
shall submit an application, after review by the local educational 
agency of the school, to the Director at such time, in such manner, and 
accompanied by such information as the Director may require.
    ``(b) Selection of Schools.--The Director shall establish clear and 
specific selection criteria for awarding grants to schools under 
section 5321, including the number of grants to award and the type of 
schools to be awarded grants. Such criteria shall be based on school 
dropout rates and other relevant factors, such as the quality of the 
existing or proposed dropout prevention program, the number of students 
who are dropouts, the number of students who are eligible to receive 
free or reduced price lunches under the Richard B. Russell National 
School Lunch Act, the number of students who are below their grade 
level in basic skills, the number of students who are involved in 
family court or the juvenile justice system, and the number of students 
who are teen mothers.
    ``(c) Fiscal Agent.--The local educational agency of the school 
shall act as the fiscal agent for the school and shall accept and 
administer the grant awarded to the school under section 5321, except 
that all funds shall be expended at the school level.

  ``Subpart 3--Additional Requirements for Model and National Dropout 
                        Prevention Grant Program

``SEC. 5331. DISSEMINATION ACTIVITIES.

    ``Each school that receives a grant under section 5311 or 5321, or 
the local educational agency of the school, shall provide information 
and technical assistance, including presentations, document-sharing, 
and joint staff development, to other schools within their school 
district and to other schools in their State that are desiring to 
receive grants under section 5311 or 5321, as the case may be.

``SEC. 5332. SCHOOL DROPOUT RATE CALCULATION.

    ``For purposes of calculating a school dropout rate under subparts 
1 and 2, a school shall use--
            ``(1) the annual event school dropout rate for students 
        leaving a school in a single year determined in accordance with 
        the National Center for Education Statistics' Common Core of 
        Data, if available;
            ``(2) the standard method used by the State agency; or
            ``(3) in other cases, a standard method for calculating the 
        school dropout rate as determined by the Director.

``SEC. 5333. REPORTING AND ACCOUNTABILITY.

    ``(a) Reporting.--In order to receive funding under subpart 1 or 2 
for a fiscal year after the first fiscal year a school receives funding 
under subpart 1 or 2, as the case may be, the school shall provide, on 
an annual basis, to the Director a report regarding the status of the 
implementation of activities funded under subpart 1 or 2 and 
certification of progress from the eligible entity whose strategies the 
school is implementing.
    ``(b) Accountability.--On the basis of the reports submitted under 
subsection (a), the Director shall evaluate the effect of the 
activities assisted under subpart 1 or 2, as the case may be, on school 
dropout prevention compared to a control group, to the extent 
practicable.

    ``Subpart 4--National Clearinghouse on Effective School Dropout 
                               Prevention

``SEC. 5341. ESTABLISHMENT OF NATIONAL CLEARINGHOUSE.

    ``Not later than 6 months after the date of enactment of this part, 
the Director shall establish a national clearinghouse on effective 
school dropout prevention, intervention programs, and reentry programs. 
The clearinghouse shall be established through a competitive grant or 
contract awarded to an organization with a demonstrated capacity to 
provide technical assistance and disseminate information in the area of 
school dropout prevention, intervention programs, and reentry programs. 
The clearinghouse shall--
            ``(1) collect and disseminate to educators, parents, and 
        policymakers information on research, effective programs, best 
        practices, and available Federal resources with respect to 
        school dropout prevention, intervention programs, and reentry 
        programs, including dissemination by an electronically 
        accessible database, a worldwide Web site, and a national 
        journal;
            ``(2) provide technical assistance regarding securing 
        resources with respect to, and designing and implementing, 
        effective and comprehensive school dropout prevention, 
        intervention programs, and reentry programs; and
            ``(3) provide professional development opportunities 
        through workshops, seminars, and institutes for educators and 
        program providers responsible for planning, implementing, and 
        evaluating comprehensive school dropout prevention, 
        intervention programs, and recovery programs.

       ``Subpart 5--Definitions; Authorization of Appropriations

``SEC. 5351. DEFINITIONS.

    ``In this part:
            ``(1) Director.--The term `Director' means the Director of 
        the Office of Dropout Prevention and Program Completion 
        established under section 218 of the General Education 
        Provisions Act.
            ``(2) Intervention programs.--The term `intervention 
        programs' means programs or strategies that are designed to 
        improve academic or personal problems of students that 
        negatively affect the students' performance or ability to 
        remain in school and graduate from school with a diploma.
            ``(3) Prevention programs.--The term `prevention programs' 
        means programs that anticipate, forestall, or relate to 
        cognitive, social, or personal problems of students before such 
        problems impair a student's ability to perform in school.
            ``(4) Recovery programs.--The term `recovery programs' 
        means programs or strategies designed to offer another 
        schooling option to an individual who has dropped out of 
        school.
            ``(5) School dropout.--The term `school dropout' has the 
        meaning given the term in section 4(17) of the School-to-Work 
        Opportunities Act of 1994.

``SEC. 5352. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Subpart 1.--There are authorized to be appropriated to carry 
out subpart 1 such sums as may be necessary for fiscal year 2001 and 
for each of the 4 succeeding fiscal years.
    ``(b) Subpart 2.--There are authorized to be appropriated to carry 
out subpart 2 such sums as may be necessary for fiscal year 2003 and 
for each of the 4 succeeding fiscal years.
    ``(c) Subpart 4.--There are authorized to be appropriated to carry 
out subpart 4 such sums as may be necessary for fiscal year 2001 and 
for each of the 4 succeeding fiscal years.''.

SEC. 4. OFFICE OF DROPOUT PREVENTION AND PROGRAM COMPLETION.

    (a) Establishment.--Title II of the Department of Education 
Organization Act (20 U.S.C. 3411 et seq.) is amended by adding at the 
end the following:

         ``office of dropout prevention and program completion

    ``Sec. 218. (a) Establishment.--There shall be in the Department of 
Education an Office of Dropout Prevention and Program Completion 
(hereafter in this section referred to as the `Office'), to be 
administered by the Director of the Office of Dropout Prevention and 
Program Completion. The Director of the Office shall report directly to 
the Under Secretary of Education and shall perform such additional 
functions as the Under Secretary may prescribe.
    ``(b) Duties.--The Director of the Office of Dropout Prevention and 
Program Completion (hereafter in this section referred to as the 
`Director'), through the Office, shall--
            ``(1) help coordinate Federal, State, and local efforts to 
        lower school dropout rates and increase program completion by 
        elementary, middle, and secondary school students;
            ``(2) recommend Federal policies, objectives, and 
        priorities to lower school dropout rates and increase program 
        completion;
            ``(3) oversee the implementation of subparts 1 and 2 of 
        part C of title V of the Elementary and Secondary Education Act 
        of 1965;
            ``(4) annually prepare and submit to Congress and the 
        Secretary a national report describing efforts and recommended 
        actions regarding school dropout prevention and program 
        completion;
            ``(5) recommend action to the Secretary and the President, 
        as appropriate, regarding school dropout prevention and program 
        completion; and
            ``(6) consult with and assist State and local governments 
        regarding school dropout prevention and program completion.
    ``(c) Scope of Duties.--The scope of the Director's duties under 
subsection (b) shall include examination of all Federal and non-Federal 
efforts related to--
            ``(1) promoting program completion for children attending 
        elementary, middle, or secondary school;
            ``(2) programs to obtain a secondary school diploma or its 
        recognized equivalent (including general equivalency diploma 
        (GED) programs); and
            ``(3) reentry programs for individuals aged 12 to 24 who 
        are out of school.
    ``(d) Detailing.--In carrying out the Director's duties under this 
section, the Director may request the head of any Federal department or 
agency to detail personnel who are engaged in school dropout prevention 
activities to another Federal department or agency in order to 
implement the National School Dropout Prevention Strategy.''.
    (b) Conforming Amendment.--The table of contents of the Department 
of Education Organization Act (20 U.S.C. 3401 note) is amended by 
inserting after the item relating to section 217 the following new 
item:

``Sec. 218. Office of Dropout Prevention and Program Completion.''.

Output: Requires the Director of the Office of Dropout Prevention and Program Completion (established by this Act in the Department of Education) to carry out provisions for: (1) a model school dropout prevention grant program; (2) a national school dropout prevention grant program; and (3) a national clearinghouse on effective school dropout prevention, intervention programs, and reentry programs.
Authorizes appropriations for such part C programs.
Amends the Department of Education Organization Act to establish an Office of Dropout Prevention and Program Completion, to be administered by a Director who shall report directly to the Under Secretary of Education. Sets forth the Director's duties and their scope.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protection of Lawful Commerce in 
Arms Act''.

SEC 2. AMENDMENT TO ORGANIC ACT.

    The Act entitled ``An Act to establish the Department of Commerce 
and Labor'', approved February 14, 1903 (15 U.S.C. 1501 et seq.), is 
amended by redesignating section 13 as section 14 and by inserting 
after section 12 the following:

``SEC. 13. RESTRICTION ON COMMERCE.

    ``(a) Secretary of Commerce List.--The Secretary of Commerce shall 
establish and maintain a list consisting of each person that notifies 
the Secretary under subsection (b) that it is a manufacturer or seller 
in interstate or foreign commerce of a firearm or ammunition product or 
is a trade association representing such manufacturers or sellers. The 
list shall contain the name of the person, the chief executive officer 
of the person, and the address and location of the headquarters of the 
person. The Secretary shall maintain and update the list and may 
publish the list in the Federal Register.
    ``(b) Notification.--Each person that--
            ``(1) is a manufacturer in interstate or foreign commerce 
        of a firearm or ammunition product, and is licensed to engage 
        in business as such manufacturer to the extent required under 
        chapter 44 of title 18, United States Code,
            ``(2) is a seller in interstate or foreign commerce of a 
        firearm or ammunition product, and is licensed to engage in 
        business as such seller to the extent required under chapter 44 
        of title 18, United States Code, or
            ``(3) is a trade association representing such 
        manufacturers or sellers,
 may notify the Secretary of its existence and provide to the Secretary 
the information described in subsection (a).
    ``(c) Freedom From Restriction.--Conduct that--
            ``(1)(A) is carried out by a manufacturer in interstate or 
        foreign commerce of a firearm or ammunition product, involves 
        such firearm or ammunition product, and is described in 
        paragraph (4) of subsection (d);
            ``(B) is carried out by a seller in interstate or foreign 
        commerce of a firearm or ammunition product, involves a firearm 
        or ammunition product, and is described in paragraph (6) of 
        subsection (d); or
            ``(C) is carried out by a trade association in the course 
        of organizing, advising, or representing its members who are 
        manufacturers in interstate or foreign commerce of a firearm or 
        ammunition product, or who are sellers in interstate or foreign 
        commerce of a firearm or ammunition product, with respect to 
        conduct of such manufacturers or sellers described in paragraph 
        (4) or (6) of subsection (d), as the case may be; and
            ``(2) is lawful under chapter 44 of title 18, United States 
        Code, or under applicable State law;
shall not be a basis for imposing a restriction on interstate or 
foreign commerce on a person on the list described in subsection (a) as 
a result of harm caused by the criminal or other unlawful misuse of 
such firearm or ammunition product by any other person.
    ``(d) Definitions.--In this section:
            ``(1) Ammunition product.--The term `ammunition product' 
        means `ammunition' as defined in section 921(a)(17) of title 
        18, United States Code, and includes a component part of such 
        ammunition product that has been shipped or transported in 
        interstate or foreign commerce.
            ``(2) Firearm product.--The term `firearm product' means 
        `firearm' as defined in subparagraph (A) or (B) section 
        921(a)(3) of title 18, United States Code, and includes any 
        `antique firearm' as defined in section 921(a)(16) of such 
        title, and includes a component part of such a firearm that has 
        been shipped or transported in interstate or foreign commerce.
            ``(3) Interstate or foreign commerce.--The term `interstate 
        or foreign commerce' has the  meaning given that term in 
section 921(a)(2) of title 18, United States Code.
            ``(4) Manufacturer.--The term `manufacturer in interstate 
        or foreign commerce of a firearm or ammunition product' means--
                    ``(A) a person who, in the course of a business in 
                interstate or foreign commerce to import, make, 
                produce, create, assemble, design, or formulate a 
                firearm or ammunition product, imports, makes, 
                produces, creates, assembles, designs, or formulates a 
                firearm or ammunition product, or engages another 
                person to import, make, produce, create, assemble, 
                design, or formulate a firearm or ammunition product;
                    ``(B) a seller in interstate or foreign commerce of 
                a firearm or ammunition product made by another person, 
                but only with respect to an aspect of the firearm or 
                ammunition product that the seller makes, produces, 
                creates, assembles, designs, or formulates; and
                    ``(C) any seller in interstate or foreign commerce 
                of a firearm or ammunition product on which, or on the 
                packaging of which, the seller is also represented as 
                the manufacturer of the firearm or ammunition product.
            ``(5) Restriction on interstate or foreign commerce.--The 
        term `restriction on interstate or foreign commerce'--
                    ``(A) means--
                            ``(i) civil damages or equitable relief, or
                            ``(ii) any other limitation or condition,
                awarded or ordered by a Federal, State, or local court, 
                that restricts the ability of a person listed under 
                subsection (a) to freely engage in interstate or 
                foreign commerce with respect to firearm or ammunition 
                products, or of a trade association listed under 
                subsection (a) to freely engage in lawful activities on 
                behalf of its membership; and
                    ``(B) does not include any damages, equitable 
                relief, or other limitation or condition arising from--
                            ``(i) breach of contract or warranty in 
                        connection with the purchase of a firearm or 
                        ammunition product; or
                            ``(ii) physical injuries or property damage 
                        resulting directly from the failure to function 
                        or improper functioning of a firearm or 
                        ammunition product, when used as intended, due 
                        to a defect in design or manufacture.
            ``(6) Seller.--The term `seller in interstate or foreign 
        commerce of a firearm or ammunition product' means a person 
        who--
                    ``(A) in the course of a business conducted in 
                interstate or foreign commerce for such purpose, sells, 
                distributes, rents, leases, prepares, blends, packages, 
                labels, or otherwise is involved in placing a firearm 
                or ammunition product in the stream of commerce; or
                    ``(B) in the course of a business conducted in 
                interstate or foreign commerce for such purpose, 
                installs, repairs, refurbishes, reconditions, or 
                maintains an aspect of a firearm or ammunition product.
            ``(7) State.--The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, and any territory or 
        possession of the United States.
            ``(8) Trade association.--The term `trade association' 
        means any association or business organization (whether or not 
        incorporated under the laws of any State), 2 or more members of 
        which are manufacturers or sellers in interstate or foreign 
        commerce of a firearm or ammunition product.
    ``(e) Limitation on Use of List.--No officer, agency, or 
instrumentality of the United States may use the list established and 
maintained under this section for any purpose other than the 
enforcement of the provisions of this section, nor shall the list be 
used or allowed to be used in any way that would result in the creation 
of any registry of firearms, firearm owners, or firearm purchasers by 
the United States, or by any State or any political subdivision 
thereof.''.

Output: Protection of Lawful Commerce in Arms Act - Amends the Organic Act establishing the Department of Commerce to direct the Secretary of Commerce to establish and maintain a list of each person that notifies the Secretary that it is a manufacturer or seller that is: (1) licensed to engage in interstate or foreign commerce of a firearm (including antique firearm) or ammunition product; or (2) is a trade association representing such manufacturers or sellers. Declares that any lawful conduct carried out by a manufacturer or seller in interstate or foreign commerce of a firearm or ammunition product, or lawful conduct carried out by a trade association in the course of representing such manufacturers or sellers, shall not be the basis for imposing a restriction on such commerce (the award of civil damages, equitable relief, or any other specified limitation) as a result of harm caused by the criminal or other unlawful misuse of such firearm or ammunition product by any other person.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flat Tax Act''.

SEC. 2. THE FLAT TAX.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after part VII the following new 
part:

                       ``PART VIII--THE FLAT TAX

``Sec. 60. Irrevocable election to be subject to flat tax.
``Sec. 60A. Tax imposed on individuals.
``Sec. 60B. Tax imposed on business activities.
``Sec. 60C. Tax on noncash compensation provided to employees not 
                            engaged in business activity.

``SEC. 60. IRREVOCABLE ELECTION TO BE SUBJECT TO FLAT TAX.

    ``(a) Individual.--
            ``(1) In general.--Except as provided in paragraph (2), in 
        lieu of the tax imposed by sections 1 (relating to tax imposed) 
        and 55 (relating to alternative minimum tax imposed), under 
        regulations prescribed by the Secretary, an individual may make 
        an irrevocable election to be subject to the tax imposed by 
        this part.
            ``(2) Innocent spouse exception.--An individual who has 
        made an election under paragraph (1) and who subsequently 
        obtains relief of liability for tax under section 6015(b) may, 
        not later than 1 year after the date such relief is granted, 
        revoke the election made under paragraph (1).
    ``(b) Person Engaged in Business Activity.--In lieu of the tax 
imposed by sections 11 (relating to tax imposed) and 55 (relating to 
alternative minimum tax imposed), under regulations prescribed by the 
Secretary, a person engaged in business activity may make an 
irrevocable election to be subject to the tax imposed by this part.
    ``(c) Disallowance of Credits.--No credit shall be allowed under 
this chapter for any taxable year to any person with respect to whom an 
election under subsection (a) or (b) is in effect.

``SEC. 60A. TAX IMPOSED ON INDIVIDUALS.

    ``(a) In General.--There is hereby imposed on the taxable income of 
every individual who makes an election to be subject to this part a tax 
equal to--
            ``(1) 19 percent of the taxable income of such individual 
        for such taxable year in the case of the first 2 taxable years 
        of the individual beginning with the taxable year for which the 
        election is made, and
            ``(2) 17 percent of the taxable income of such individual 
        for such taxable year in the case of all taxable years 
        subsequent to the taxable years described in paragraph (1).
    ``(b) Taxable Income.--For purposes of this part, the term `taxable 
income' means the excess of--
            ``(1) the sum of--
                    ``(A) wages (as defined in section 3121(a) without 
                regard to paragraph (1) thereof) which are paid in cash 
                and which are received during the taxable year for 
                services performed in the United States,
                    ``(B) retirement distributions which are includible 
                in gross income for such taxable year, plus
                    ``(C) amounts received under any law of the United 
                States or of any State which is in the nature of 
                unemployment compensation, over
            ``(2) the standard deduction.
    ``(c) Standard Deduction.--For purposes of this part--
            ``(1) In general.--The term `standard deduction' means the 
        sum of--
                    ``(A) the basic standard deduction, plus
                    ``(B) the additional standard deduction.
            ``(2) Basic standard deduction.--For purposes of paragraph 
        (1), the basic standard deduction is--
                    ``(A) $32,496 in the case of--
                            ``(i) a joint return, or
                            ``(ii) a surviving spouse (as defined in 
                        section 2(a)),
                    ``(B) $20,739 in the case of a head of household 
                (as defined in section 2(b)), and
                    ``(C) $16,248 in the case of an individual--
                            ``(i) who is not married and who is not a 
                        surviving spouse or head of household, or
                            ``(ii) who is a married individual filing a 
                        separate return.
            ``(3) Additional standard deduction.--For purposes of 
        paragraph (1), the additional standard deduction is $6,998 for 
        each dependent (as defined in section 152) who is a qualifying 
        child (as defined in section 152(c)(1)) for the taxable year 
        and who is not required to file a return for such taxable year.
    ``(d) Retirement Distributions.--For purposes of this section, the 
term `retirement distribution' means any distribution from--
            ``(1) a plan described in section 401(a) which includes a 
        trust exempt from tax under section 501(a),
            ``(2) an annuity plan described in section 403(a),
            ``(3) an annuity contract described in section 403(b),
            ``(4) an individual retirement account described in section 
        408(a),
            ``(5) an individual retirement annuity described in section 
        408(b),
            ``(6) an eligible deferred compensation plan (as defined in 
        section 457),
            ``(7) a governmental plan (as defined in section 414(d)), 
        or
            ``(8) a trust described in section 501(c)(18).
Such term includes any plan, contract, account, annuity, or trust 
which, at any time, has been determined by the Secretary to be such a 
plan, contract, account, annuity, or trust.
    ``(e) Income of Certain Children.--For purposes of this part--
            ``(1) an individual's taxable income shall include the 
        taxable income of each dependent child of such individual who 
        has not attained age 14 as of the close of such taxable year, 
        and
            ``(2) such dependent child shall have no liability for tax 
        imposed by this section with respect to such income and shall 
        not be required to file a return for such taxable year.
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2013, each dollar amount 
        contained in subsection (c) shall be increased by an amount 
        determined by the Secretary to be equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment for such 
                calendar year.
            ``(2) Cost-of-living adjustment.--For purposes of paragraph 
        (1), the cost-of-living adjustment for any calendar year is the 
        percentage (if any) by which--
                    ``(A) the CPI for the preceding calendar year, 
                exceeds
                    ``(B) the CPI for the calendar year 2012.
            ``(3) CPI for any calendar year.--For purposes of paragraph 
        (2), the CPI for any calendar year is the average of the 
        Consumer Price Index as of the close of the 12-month period 
        ending on August 31 of such calendar year.
            ``(4) Consumer price index.--For purposes of paragraph (3), 
        the term `Consumer Price Index' means the last Consumer Price 
        Index for all-urban consumers published by the Department of 
        Labor. For purposes of the preceding sentence, the revision of 
        the Consumer Price Index which is most consistent with the 
        Consumer Price Index for calendar year 1986 shall be used.
            ``(5) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $10, such increase shall be rounded to 
        the next highest multiple of $10.
    ``(g) Marital Status.--For purposes of this section, marital status 
shall be determined under section 7703.

``SEC. 60B. TAX IMPOSED ON BUSINESS ACTIVITIES.

    ``(a) Tax Imposed.--There is hereby imposed on every person engaged 
in a business activity who makes an election to be taxed under this 
part a tax equal to--
            ``(1) 19 percent of the business taxable income of such 
        person for such taxable year in the case of the first 2 taxable 
        years of the person beginning with the taxable year for which 
        the election is made, and
            ``(2) 17 percent of the business taxable income of such 
        person for such taxable year in the case of all taxable years 
        subsequent to the taxable years described in paragraph (1).
    ``(b) Liability for Tax.--The tax imposed by this section shall be 
paid by the person engaged in the business activity, whether such 
person is an individual, partnership, corporation, or otherwise.
    ``(c) Business Taxable Income.--For purposes of this section--
            ``(1) In general.--The term `business taxable income' means 
        gross active income reduced by the deductions specified in 
        subsection (d).
            ``(2) Gross active income.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `gross active income' means gross receipts 
                from--
                            ``(i) the sale or exchange of property or 
                        services in the United States by any person in 
                        connection with a business activity, and
                            ``(ii) the export of property or services 
                        from the United States in connection with a 
                        business activity.
                    ``(B) Exchanges.--For purposes of this section, the 
                amount treated as gross receipts from the exchange of 
                property or services is the fair market value of the 
                property or services received, plus any money received.
                    ``(C) Coordination with special rules for financial 
                services, etc.--Except as provided in subsection (e)--
                            ``(i) the term `property' does not include 
                        money or any financial instrument, and
                            ``(ii) the term `services' does not include 
                        financial services.
            ``(3) Exemption from tax for activities of governmental 
        entities and tax-exempt organizations.--For purposes of this 
        section, the term `business activity' does not include any 
        activity of a governmental entity or of any other organization 
        which is exempt from tax under this chapter.
    ``(d) Deductions.--
            ``(1) In general.--The deductions specified in this 
        subsection are--
                    ``(A) the cost of business inputs for the business 
                activity,
                    ``(B) wages (as defined in section 3121(a) without 
                regard to paragraph (1) thereof) which are paid in cash 
                for services performed in the United States as an 
                employee, and
                    ``(C) retirement contributions to or under any plan 
                or arrangement which makes retirement distributions (as 
                defined in section 60A(d)) for the benefit of such 
                employees to the extent such contributions are allowed 
                as a deduction under section 404.
            ``(2) Business inputs.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `cost of business inputs' means--
                            ``(i) the amount paid for property sold or 
                        used in connection with a business activity,
                            ``(ii) the amount paid for services (other 
                        than for the services of employees, including 
                        fringe benefits paid by reason of such 
                        services) in connection with a business 
                        activity, and
                            ``(iii) any excise tax, sales tax, customs 
                        duty, or other separately stated levy imposed 
                        by a Federal, State, or local government on the 
                        purchase of property or services which are for 
                        use in connection with a business activity.
                Such term shall not include any tax imposed by chapter 
                2 or 21.
                    ``(B) Exceptions.--Such term shall not include--
                            ``(i) items described in subparagraphs (B) 
                        and (C) of paragraph (1), and
                            ``(ii) items for personal use not in 
                        connection with any business activity.
                    ``(C) Exchanges.--For purposes of this section, the 
                amount treated as paid in connection with the exchange 
                of property or services is the fair market value of the 
                property or services exchanged, plus any money paid.
    ``(e) Special Rules for Financial Intermediation Service 
Activities.--In the case of the business activity of providing 
financial intermediation services, the taxable income from such 
activity shall be equal to the value of the intermediation services 
provided in such activity.
    ``(f) Exception for Services Performed as Employee.--For purposes 
of this section, the term `business activity' does not include the 
performance of services by an employee for the employee's employer.
    ``(g) Carryover of Credit-Equivalent of Excess Deductions.--
            ``(1) In general.--If the aggregate deductions for any 
        taxable year exceed the gross active income for such taxable 
        year, the credit-equivalent of such excess shall be allowed as 
        a credit against the tax imposed by this section for the 
        following taxable year.
            ``(2) Credit-equivalent of excess deductions.--For purposes 
        of paragraph (1), the credit-equivalent of the excess described 
        in paragraph (1) for any taxable year is an amount equal to--
                    ``(A) the sum of--
                            ``(i) such excess, plus
                            ``(ii) the product of such excess and the 
                        3-month Treasury rate for the last month of 
                        such taxable year, multiplied by
                    ``(B) the rate of the tax imposed by subsection (a) 
                for such taxable year.
            ``(3) Carryover of unused credit.--If the credit allowable 
        for any taxable year by reason of this subsection exceeds the 
        tax imposed by this section for such year, then (in lieu of 
        treating such excess as an overpayment) the sum of--
                    ``(A) such excess, plus
                    ``(B) the product of such excess and the 3-month 
                Treasury rate for the last month of such taxable year,
        shall be allowed as a credit against the tax imposed by this 
        section for the following taxable year.
            ``(4) 3-month treasury rate.--For purposes of this 
        subsection, the 3-month Treasury rate is the rate determined by 
        the Secretary based on the average market yield (during any 1-
        month period selected by the Secretary and ending in the 
        calendar month in which the determination is made) on 
        outstanding marketable obligations of the United States with 
        remaining periods to maturity of 3 months or less.

``SEC. 60C. TAX ON NONCASH COMPENSATION PROVIDED TO EMPLOYEES NOT 
              ENGAGED IN BUSINESS ACTIVITY.

    ``(a) Imposition of Tax.--There is hereby imposed on every employer 
of an employee to whom this section applies and who makes an election 
to be taxed under this part a tax equal to--
            ``(1) 19 percent of the value of excludable compensation 
        provided during the calendar year by the employer for the 
        benefit of employees to whom this section applies in the case 
        of the first 2 calendar years beginning with the calendar year 
        for which the election under section 60 is made, and
            ``(2) 17 percent of such excludable compensation during the 
        calendar year in the case of all calendar years subsequent to 
        the calendar years described in paragraph (1).
    ``(b) Liability for Tax.--The tax imposed by this section shall be 
paid by the employer.
    ``(c) Excludable Compensation.--For purposes of subsection (a), the 
term `excludable compensation' means any remuneration for services 
performed as an employee other than--
            ``(1) wages (as defined in section 3121(a) without regard 
        to paragraph (1) thereof) which are paid in cash,
            ``(2) remuneration for services performed outside the 
        United States, and
            ``(3) retirement contributions to or under any plan or 
        arrangement which makes retirement distributions (as defined in 
        section 60A(d)).
    ``(d) Employees to Whom Section Applies.--This section shall apply 
to an employee who is employed in any activity by--
            ``(1) any organization which is exempt from taxation under 
        this chapter, or
            ``(2) any agency or instrumentality of the United States, 
        any State or political subdivision of a State, or the District 
        of Columbia.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

                     ``Part VIII. The Flat Tax.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 3. REPEAL OF ESTATE AND GIFT TAXES.

    (a) In General.--Subtitle B of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to the estates of decedents dying, and gifts and generation-skipping 
transfers made, after December 31, 2013.
    (c) Cross Reference.--See section 102 of the Internal Revenue Code 
of 1986 for exclusion of gifts and inheritances from gross income.

SEC. 4. SUPERMAJORITY REQUIRED TO CONSIDER REVENUE MEASURE.

    A bill, joint resolution, amendment to a bill or joint resolution, 
or conference report that--
            (1) includes an increase in the rates of tax specified in 
        section 60A(a) or 60B(a) of the Internal Revenue Code of 1986 
        (as amended by this Act), or
            (2) reduces the standard deduction, as defined in section 
        60A(c) of such Code (as so amended), or the deductions 
        specified in section 60B(d) of such Code (as so amended),
may not be considered as passed or agreed to by the House of 
Representatives or the Senate unless so determined by a vote of not 
less than two-thirds of the Members of the House of Representatives or 
the Senate (as the case may be) voting, a quorum being present.


Output: Flat Tax Act - Amends the Internal Revenue Code to authorize an individual or a person engaged in business activity to make an irrevocable election to be subject to a flat tax (in lieu of the existing income tax provisions) of 19% for the first two years after an election is made, and 17% thereafter.  Calculates taxable income for individual taxpayers by subtracting a basic standard deduction and an additional standard deduction for each dependent from the total of wages, retirement distributions, and unemployment compensation. Defines &quot;business taxable income&quot; to mean gross active income reduced by the cost of certain business inputs. Imposes an employer tax on the value of excludable compensation provided to employees not engaged in business activity of 19% for the first two years after an election is made under this Act and 17% thereafter. Repeals the estate, gift, and generation-skipping transfer taxes. Requires a two-thirds vote of the House of Representatives or the Senate to increase the flat tax rate proposed by this Act or to reduce the amount of the standard deduction or business-related deductions allowed by this Act.