Definition: 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: OFFICERS.

''The State Administrator shall establish a Problem Resolution
Office. Problem Resolution Officers shall have the authority to
investigate taxpayer complaints and enjoin collection activity if, in
the opinion of the Problem Resolution Officer, said collection activity
is reasonably likely to not be in compliance with law. Said
administrative injunction may only be reversed by the highest official
in the relevant State or Federal taxing authority or by its General
Counsel upon a finding that the collection activity is justified by
clear and convincing evidence. The authority to reverse this
administrative injunction may not be delegated. Problem Resolution
Officers shall not be disciplined or adversely affected for the
issuance of administrative injunctions unless a pattern or issuing
injunctions that are manifestly unreasonable is proven in an
administrative hearing. Nothing in this section shall limit the
authority of the State Administrators or the taxpayer to pursue any
legal remedy in any court with jurisdiction over the dispute at issue.

''SEC. 53. JURISDICTION AND INTERSTATE ALLOCATION.

''(a) Allocation Rules.--For purposes of allocating revenue between
or among administering states from taxes imposed by this subtitle, the
revenue shall be allocated to those states that are the destination of
the taxable property or services. The destination of the purchase of
taxable property and services shall be determined in accordance with
this section.
''(b) Federal Office of Revenue Allocation.--The Secretary shall
establish an Office of Revenue Allocation to arbitrate any claims or
disputes among administering states as to the destination of taxable
property and services for purposes of allocating revenue between or
among the states from taxes imposed by this subtitle. The determination
of the Administrator of the Office of Revenue Allocation shall be
subject to judicial review in any federal court with competent
jurisdiction provided, however, that the standard of review shall be
abuse of discretion.
''(c) Tangible Personal Property.--The destination of tangible
personal property shall be the state or territory in which the property
was first delivered to the purchaser. Tangible personal property
shipped by means of the mail or common carrier shall be deemed
delivered to the location of the purchaser for purposes of this
subsection upon shipment by mail or common carrier.
''(d) Real Property.--The destination of real property or rents or
leaseholds on real property shall be state or territory in which the
real property is located.
''(e) Other Property.--The destination of other property shall be
residence of the purchaser.
''(f) Services.--
''(1) General rule.--The destination of services shall be
state or territory in which the use, consumption or enjoyment
of the services occurred. Allocation of service invoices
relating to more than one jurisdiction shall be on the basis of
time.
''(2) Telecommunications services.--The destination of
telecommunications services shall be the residence of the
purchaser. Telecommunications services shall include telephone,
telegraph, cable television, satellite and computer on-line or
network services.
''(3) Domestic transportation services.--For transportation
services where all of the final destinations are within the
United States, the destination of transportation services shall
be the final destination of the trip (in the case of round or
multiple trip fares, the services amount shall be equally
allocated among the final destinations).
''(4) International transportation services.--For
transportation services where the final destination or origin
of the trip is without the United States, the service amount
shall be deemed 50 percent attributable to the United States
destination or origin.
''(g) Financial Intermediation Services.--The destination of
financial intermediation services shall be the residence of the
purchase.
''(h) A State Tax Administrator shall have jurisdiction over any
gross payments made which have a destination (as determined in
accordance with this section) within the state of said State Tax
Administrator. This grant of jurisdiction is not exclusive of other
jurisdiction that said State Tax Administrator may have.
''(i) Rents and Royalties Paid for the Lease of Tangible
Property.--
''(1) General rule.--The destination of rents and royalties
paid for the lease of tangible property shall be where the
property is located.
''(2) Vehicles.--The destination of rent and lease payments
on vehicles shall be--
''(A) in the case of rentals and leases of a term
one month or less, the location where the vehicle was
originally delivered to the lessee; and
''(B) in the case of rentals and leases of a term
greater than one month, the residence of the lessee.

''SEC. 54. TAX TO BE STATED AND CHARGED SEPARATELY.

''(a) In General.--For each purchase of taxable property or
services for which a tax is imposed pursuant to section 1, the sales
tax shall be charged separately from the purchase price by the vendor
or seller. For purchase of taxable property or services for which a tax
is imposed pursuant to section 1, the vendor shall provide to the
purchaser a receipt that sets forth at least the following information:
''(1) The property or services price exclusive of tax.
''(2) The amount of tax paid.
''(3) The property or service price inclusive of tax.
''(4) The tax rate (the amount of tax paid (per
subparagraph 2) divided by the property or service price
inclusive of tax (per subparagraph 3)).
''(5) The date that the good or service was sold.
''(6) The name of the vendor.
''(7) The vendor registration number.
''(b) Vending Machine Exception.--The requirements of subsection
(a) shall be inapplicable in the case of sales by vending machines.
Vending machines for purposes of this subsection shall mean machines--
''(1) that dispense taxable property in exchange for coins,
one, five, ten or twenty dollar bills, and
''(2) that sell no single item exceeding ten dollars per
unit in price.

''SEC. 55. INSTALLMENT AGREEMENTS; COMPROMISES.

''The State Administrator or the Secretary, as the case may be, is
authorized to enter into written agreements with any person under which
the person is allowed to satisfy liability for payment of any tax in
installment payments if he determines that such agreement will
facilitate the collection of such liability. The agreement shall remain
in effect for the term of the agreement unless the information that the
person provided to the Secretary or the State Administrator was
materially inaccurate or incomplete. The Secretary and the State
Administrator may compromise any amounts alleged to be due.

''SEC. 56. ACCOUNTING.

''(a) Cash Method To Be Used Generally.--Vendors and other persons
shall remit taxes and report transactions with respect to the month for
which payment was received or the tax imposed by this chapter otherwise
becomes due.
''(b) Election To Use Accrual Method.--A person may elect with
respect to a calendar year, in a form prescribed by the Secretary, to
remit taxes and report transactions with respect to the month where a
sale was invoiced and accrued.
''(c) Cross Reference.--

''For rules relating to bad debts for
vendors electing the accrual method, see section 11(g).

''SEC. 57. HOBBY ACTIVITIES.

''(a) The exemption afforded by section 2(a)(1) shall not be
available for any taxable property or service used by a trade or
business if that trade or business is not engaged in for profit.
''(b) If the trade or business has received gross payments for the
sale of taxable property or services that exceed the sum of--
''(1) taxable property and services purchased,
''(2) wages paid, and
''(3) taxes paid,
in 2 or more of the most recent 4 calendar years during which it
operated, then the business activity shall be conclusively deemed to be
engaged in for profit.''.

SEC. 5. PHASE-OUT OF THE INTERNAL REVENUE SERVICE.

(a) In General.--Appropriations for any expenses of the Internal
Revenue Service including processing income tax returns for years prior
to the repeal of the income tax, revenue accounting, management,
transfer of payroll tax data to the Social Security Administration and
otherwise for years after fiscal year 2007 are not authorized.
(b) Excise and Sales Tax Bureaus.--Section 7801 is amended by
adding the following new subsections:
''(d) Excise Tax Bureau.--There shall be in the Department of
Treasury an Excise Tax Bureau to administer those excise taxes not
repealed by this Act.
''(e) Sales Tax Bureau.--There shall be in the Department of
Treasury a Sales Tax Bureau to administer the national sales tax in
those States where it is required pursuant to section 31(g), and to
discharge other Federal duties and powers relating to the national
sales tax (including those required by sections 32, 33, and 53(b)). The
Office of Revenue Allocation shall be within the Sales Tax Bureau.''.
(c) Assistant General Counsels.--Section 7801(b)(2) is amended to
read as follows:
''(2) Assistant general counsels.--The Secretary of the
Treasury may appoint, without regard to the provisions of the
civil service laws, and fix the duties of not more than 5
Assistant General Counsels.''.
(d) Short Year.--
(1) For purposes of the Federal income tax, the tax imposed
by section 1 and section 11 for taxable years ending June 30,
2006, shall be modified as set forth in this subsection.
(2) For calendar year taxpayers, the dollar figures in
section 1 and section 11 shall be reduced by dividing by 2 all
dollar figures that would be applicable but for this
subsection.
(3) For fiscal year taxpayers, the dollar figures in
section 1 and section 11 shall be equal to the product of--
(A) the dollar amount that would be applicable but
for this subsection, and
(B) the ratio that has as its numerator the number
of months in the taxpayer's taxable year ending June
30, 2006, and as its denominator 12.
(4) The Secretary shall publish tax rate schedules in
accordance with this subsection.

SEC. 6. SOCIAL SECURITY ADMINISTRATION TO COLLECT PAYROLL TAXES.

(a) In General.--Commencing January 1, 2006, the Social Security
Administration shall collect and administer the taxes imposed pursuant
to chapter 2 of subtitle A (relating to self employment income taxes)
and subtitle C (relating to employment taxes) of the Internal Revenue
Code of 1986.
(b) Cross References.--

For revised rules relating to the self-
employment tax, see section 7 of this Act.
For rules relating to revised
withholding tax schedules and family consumption refund, see section
13.

SEC. 7. SELF-EMPLOYMENT TAX.

(a) In General.--Subsection 1402(a) of the Internal Revenue Code of
1986 is amended to read as follows:
''(a) In General.--'Self employment income' shall mean gross
payments received in a calendar year from the sale of taxable property
or services (without regard to exemption) less the sum in a calendar
year of--
''(1) purchases of taxable property or services (without
regard to exemption) in furtherance of a business purpose,
''(2) any wages paid (whether to the self-employed person
or others) in furtherance of a business purpose,
''(3) unused transition amounts, and
''(4) undeducted negative self employment income amounts
from prior periods.
''(b) Transition Amounts.--
''(1) General rule.--The transition amount for the ten
calendar years commencing in 2006 shall be the unrecovered
basis amount as of the end of December 31, 2005, divided by
ten.
''(2) Unrecovered basis amount.--The unrecovered basis
amount shall be remaining income tax basis relating to--
''(A) prior law section 167 property placed in
service prior to January 1, 2006, and
''(B) inventory held as of the end of 2005
(including any amounts capitalized in accordance with
prior law section 263A).''.
(b) Conforming Amendments.--Subsections 1402(b) and 1402(c) are
hereby repealed. Subsections 1402(d) et seq. are hereby renumbered as
subsections 1402(b) et seq.

SEC. 8. SOCIAL SECURITY BENEFITS INDEXED ON SALES TAX INCLUSIVE BASIS.

Subparagraph (D) of paragraph (1) of subsection (i) of section 215
of the Social Security Act (42 U.S.C. 415) (relating to cost-of-living
increases in Social Security benefits) is amended to read as follows:
''(D)(i) the term 'CPI increase percentage', with respect
to a base quarter or cost-of-living quarter in any calendar
year, means the percentage (rounded to the nearest one-tenth of
1 percent) by which the Consumer Price Index for that quarter
(as prepared by the Department of Labor) exceeds such index for
the most recent prior calendar quarter which was a base quarter
under subparagraph (A)(ii) or, if later, the most recent cost-
of-living computation quarter under subparagraph (B);
''(ii) if the Consumer Price Index (as prepared by the
Department of Labor) does not include the national sales tax
paid, then the term 'CPI increase percentage' with respect to a
base quarter or cost-of-living quarter in any calendar year,
means the percentage (rounded to the nearest one-tenth of 1
percent) by which the product of--
''(I) the Consumer Price Index for that quarter (as
prepared by the Department of Labor); and
''(II) the national sales tax factor,
exceeds such index for the most recent prior calendar quarter
which was a base quarter under subparagraph (A)(ii) or, if
later, the most recent cost-of-living computation quarter under
subparagraph (B); and
''(iii) for purposes of clause (ii), the 'national sales
tax factor' is equal to one plus the quotient that is--
''(I) the sales tax rate (as defined in section 1
of title 26), divided by
''(II) the quantity that is one minus the sales tax
rate.''.

SEC. 9. COMPENSATING PAYMENTS TO CERTAIN PERSONS ON FIXED INCOME.

(a) Compensating Payment.--Eligible persons (as defined in
subsection (c)) shall receive a compensating payment (as defined in
subsection (b)) provided that they comply with subsection (g) (relating
to applications).
(b) Compensating Payment Defined.--The term ''compensating
payment'' means the product of the qualified fixed income payment
amount (as defined in subsection (e)) and the excess inflation rate (as
defined in subsection (f)).
(c) Eligible Person Defined.--An eligible person is any person with
respect to any calendar year who is entitled to--
(1) Social Security benefits; and
(2) qualified fixed income payments (as defined in
subsection (d)).
(d) Qualified Fixed Income Payment Defined.--A qualified fixed
income payment is a payment received by--
(1) a beneficiary under a defined benefit plan (within the
meaning of section 414(j) of the Internal Revenue Code as in
effect prior to the enactment of this Act) whether sponsored by
a private or Government employer; or
(2) by an annuitant pursuant to an annuity contract between
the annuitant and a bona fide insurance company.
A payment pursuant to a plan or annuity contract is not a qualified
fixed income payment if the payment varies with investment performance,
interest rates, or inflation. Payments pursuant to an annuity contract
entered into after June 30, 2006, shall not be qualified fixed income
payments. Payments pursuant to a defined benefit plan to a beneficiary
that had been a participant in said defined benefit plan (within the
meaning of section 410 of the Internal Revenue Code as in effect prior
to the enactment of this Act) for less than 5 years shall not be
qualified fixed income payments.
(e) Qualified Fixed Income Payment Amount.--The qualified fixed
income payment amount is /12\ of qualified fixed income payments that
an eligible person is entitled to receive during the calendar year
subsequent to the year for which the compensating payment is
calculated, provided, however, that the qualified fixed income payment
amount shall not exceed $5,000.
(f) Excess Inflation Rate Defined.--The term ''excess inflation
rate'' shall mean the excess, if any, of the consumer price index (all
urban) during the 18-month period ending December 31, 2006, over the
increase projected for the consumer price index (all urban) in the
Office of Management and Budget baseline reported in the Budget of the
United States for Fiscal Year 2006 for said 18-month period. The
baseline assumption for the 6 months in 2006 shall be /2\ of the
assumed increase for the entire calendar year 2006.
(g) Application Required.--In order to receive compensating
payments, each eligible person must apply in a form prescribed by the
Secretary of Health and Human Services and provide such documentation
as the Secretary may reasonably require.
(h) Means of Payment.--Each person entitled to a compensating
payment shall receive the compensating payment with their Social
Security benefit payment. The compensating payment shall be separately
indicated but may be included in one check. The funds to make
compensating payments shall come from the general fund.
(i) The Secretary of Health and Human Services may require insurers
that are parties to annuity contracts and defined benefit plan sponsors
to issue a statement to annuitants or plan participants including such
information as the Secretary may require to determine the qualified
fixed income payment amount.

SEC. 10. INTEREST.

Section 6621 of the Internal Revenue Code of 1986 is amended by
striking the last sentence in section 6621(a)(1) and by striking ''3''
in section 6621(a)(2)(B) and substituting in its stead ''2''.

SEC. 11. SUPERMAJORITY REQUIRED TO RAISE RATE.

(a) In General.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment thereto, or conference report thereon that includes any
provision that--
(1) increases any federal sales tax rate, and
(2) provides any exemption, deduction, credit or other
benefit which results in a reduction in federal revenues.
(b) Waiver or Suspension.--This section may be waived or suspended
in the House of Representatives or the Senate only by the affirmative
vote of two-thirds of the Members, duly chosen and sworn.
Output:
Individual Tax Freedom Act of 2004 - Amends the Internal Revenue Code to repeal the income tax, estate and gift taxes, certain excise taxes, and certain tax administration provisions of the Internal Revenue Code of 1986 (effective in 2006). Imposes a national sales tax (effective in 2006) equal to 15 percent of the gross payments for the use, consumption or enjoyment in the United States of any taxable property or service, whether produced or rendered within or without the United States. Allows certain exemptions from such tax, including exemptions for property or services purchased for a business purpose in an active trade or business or for export for use or consumption outside the United States. Sets forth provisions for the administration and collection of the tax and for credits and refunds. Allows for: (1) installment payments of tax resulting from the purchase of a principal residence; (2) a sales tax rebate for certain low-income families; and (3) compensating payments to certain persons on fixed incomes. Grants States the authority to administer and collect the sales tax and to remit tax proceeds to the Treasury. Prohibits the funding of the Internal Revenue Service after FY 2007. Establishes in the Department of Treasury: (1) an Excise Tax Bureau to administer any excise taxes not repealed by this Act; and (2) a Sales Tax Bureau to administer the national sales tax established by this Act. Directs the Social Security Administration to collect and administer employment and self-employment payroll taxes. Requires a two-thirds vote of the Members of the House of Representatives or the Senate to consider any legislation that raises any Federal sales tax rate or results in a reduction in Federal revenues.