Tax Reform Action Commission Act of 2005 - Declares that Congress must reform the Internal Revenue Code of 1986 so that the United States has a tax system that is: (1) simple, transparent, and efficient; (2) fair and equitable to all Americans; and (3) neutral between different activities and between current and future consumption.
Establishes in the legislative branch a Tax Reform Action Commission (Commission). Requires the Commission to make recommendations for tax reform to meet those objectives to Congress within two years after it is established.
Directs the Commission to establish task forces in Federal agencies to assist in the making and compiling of recommendations for tax reform.
Sets forth procedures for congressional consideration of the Commission's recommendations.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 41 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 41
To establish a commission on tax reform.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 2005
Mr. Barrett of South Carolina (for himself, Mr. Cox, Mr. Simpson, Mr.
Garrett of New Jersey, Mr. Green of Wisconsin, Mr. Wilson of South
Carolina, Mr. Calvert, Mr. Burton of Indiana, Mr. Bonilla, Mr. Gary G.
Miller of California, Mr. Bartlett of Maryland, Mr. Pitts, Mr.
Doolittle, Mr. Ryun of Kansas, Mr. Chocola, Mr. Flake, and Mr. Goode)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Rules, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To establish a commission on tax reform.
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 ``Tax Reform Action Commission Act of
2005''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The current Federal tax system is fundamentally
defective, economically counter-productive, and its complexity
leads to staggering costs for taxpayers.
(2) Complexity and frequent change of the Internal Revenue
Code of 1986 cause taxpayer and administrative confusion and
uncertainty. The significant difficulty in understanding tax
rules and regulations due to their lack of clarity and
readability annually forces United States taxpayers to expend
enormous sums of time and money on compliance and
administration activities which represent a pure loss to the
economy every year.
(3) A major source of complexity is the use of the Federal
tax system to advance social and economic policies. Targeted
benefits in the form of preferential rates, exclusions,
exemptions, deductions, credits, deferrals and adjustments are
examples of factors that complicate the Internal Revenue Code
of 1986.
(4) Among the reasons that the Internal Revenue Code of
1986 is considered unfair is its dissimilar treatment of
similarly situated taxpayers and because those who have the
means to afford professional advice are more likely to receive
optimal treatment and maximum benefits.
(5) The tax laws of the United States are among the most
burdensome and uncompetitive in the world and those laws make
it difficult for domestically-owned United States companies to
compete abroad and in the United States. A domestically-owned
corporation is disadvantaged compared to a United States
subsidiary of a foreign-owned corporation and international
competitiveness is forcing many United States corporations to
make a choice they do not want to make: go out of business,
sell the business to a foreign competitor, or become a
subsidiary of a foreign corporation.
(6) The current tax system discourages saving and depresses
the level of United States capital accumulation available for
financing investment, which is critical to the growth potential
of the economy, real income, and living standards.
(7) Past efforts at partial reform of the Internal Revenue
Code of 1986 have not succeeded in reducing its complexity,
removing its distortions of economic incentives, or making it
fairer. Those destructive problems and others stemming from the
Internal Revenue Code of 1986 can and should be addressed
through responsible fundamental tax reform. Despite the fact
that a number of viable tax reform proposals have been offered,
a lack of consensus has blocked progress toward the
consideration and enactment of an existing or new plan.
(8) Therefore, in order to proceed with responsible and
needed tax reform, it is necessary to establish a Tax Reform
Action Commission charged with developing a proposal to achieve
tax reform that will benefit all Americans.
SEC. 3. OBJECTIVES OF REFORM.
The Congress finds that it must act to reform the Internal Revenue
Code of 1986 so that the United States has a tax system that is--
(1) simple, transparent, and efficient;
(2) fair and equitable to all Americans; and
(3) neutral between different activities and between
current consumption and future consumption.
SEC. 4. ESTABLISHMENT OF COMMISSION.
There is established in the legislative branch a Tax Reform Action
Commission (in this Act referred to as the ``Commission'').
SEC. 5. DUTIES OF THE COMMISSION.
(a) Recommendations for Reform.--Not later than 2 years after the
date on which the Commission is established, the Commission shall make
specific recommendations to Congress for reform of the internal revenue
laws in a manner that incorporates the objectives of reform set forth
in section 3. The recommendations of the Commission shall be based on
its compilation and reconciliation of the recommendations of the task
forces convened by the Commission pursuant to section 9 and shall
provide for such appropriate interagency support and cooperation as may
be necessary to attain such objectives.
(b) Legislative Language.--The recommendations required under
subsection (a) shall include legislative language necessary for
carrying out such recommendations. The Commission shall develop such
legislative language after conducting such public hearings and
consulting with such public or private entities as the Commission
considers necessary and appropriate to make the recommendations
required under subsection (a).
SEC. 6. COMPOSITION OF THE COMMISSION.
(a) Number and Appointment.--The Commission shall be composed of 15
members, as follows:
(1) Three members appointed by the President, two from the
executive branch of the Government and one from private life.
(2) Four members appointed by the majority leader of the
Senate, one from Members of the Senate and three from private
life.
(3) Two members appointed by the minority leader of the
Senate, one from Members of the Senate and one from private
life.
(4) Four members appointed by the Speaker of the House of
Representatives, one from Members of the House and three from
private life.
(5) Two members appointed by the minority leader of the
House of Representatives, one from Members of the House and one
from private life.
(b) Qualifications.--The members of the Commission shall consist of
individuals who are of recognized standing and distinction and who
possess a demonstrated capacity to discharge the duties imposed on the
Commission.
(c) Chair.--The President shall designate a member of the
Commission to serve as Chair of the Commission who shall chair the
Commission, determine its duties, and supervise its staff.
(d) Terms of Appointment.--The members of the Commission shall be
appointed not more than 30 days after the date of the enactment of this
Act. The members of the Commission shall serve for the life of the
Commission.
(e) Vacancies.--A vacancy in the Commission shall not affect the
power of the remaining members to execute the duties of the Commission
but any such vacancy shall be filled in the same manner in which the
original appointment was made.
SEC. 7. PROCEDURES.
(a) Meetings.--The Commission shall meet at the call of its Chair
or a quorum of its members.
(b) Quorum.--A quorum shall consist of nine members of the
Commission, except that a lesser number may conduct a hearing under
subsection (c).
(c) Hearings and Other Activities.--For the purpose of carrying out
its duties, the Commission may hold such hearings and undertake such
other activities as the Commission determines necessary to carry out
its duties.
(d) Obtaining Information.--Upon request of the Commission, the
Secretary of the Treasury and the head of any other department, agency,
or instrumentality of the Federal Government shall furnish information
deemed necessary by the Commission to enable it to carry out its
duties.
SEC. 8. ADMINISTRATION.
(a) Compensation.--Except as provided in subsection (b), members of
the Commission shall receive no additional pay, allowances, or benefits
by reason of their service on the Commission.
(b) Travel Expenses and Per Diem.--Each member of the Commission
who is not a present Member of the Congress and who is not otherwise an
officer or employee of the Federal Government shall receive travel
expenses and per diem in lieu of subsistence in accordance with
sections 5702 and 5703 of title 5, United States Code.
(c) Staff and Support Services.--
(1) Staff director.--
(A) Appointment.--The Chair in accordance with the
rules agreed upon by the Commission shall appoint a
staff director for the Commission.
(B) Compensation.--The staff director shall be paid
at a rate not to exceed the rate established for level
V of the Executive Schedule under section 5315 of title
5, United States Code.
(2) Staff.--The Chair in accordance with the rules agreed
upon by the Commission shall appoint such additional personnel
as the Commission determines to be necessary.
(3) Applicability of civil service laws.--The staff
director and other members of the staff of the Commission shall
be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the competitive
service, and shall be paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates.
(4) Experts and consultants.--With the approval of the
Commission, the staff director may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code.
(d) Physical Facilities.--The Architect of the Capitol, in
consultation with the appropriate entities in the legislative branch,
shall locate and provide suitable office space for the operation of the
Commission on a nonreimbursable basis. The facilities shall serve as
the headquarters of the Commission and shall include all necessary
equipment and incidentals required for the proper functioning of the
Commission.
(e) Administrative Support Services and Other Assistance.--
(1) Upon the request of the Commission, the Architect of
the Capitol, the Commissioner of Social Security, and the
Administrator of General Services shall provide to the
Commission on a nonreimbursable basis such administrative
support services as the Commission may request.
(2) In addition to the assistance set forth in paragraphs
(1) and (2), departments and agencies of the United States may
provide the Commission such services, funds, facilities, staff,
and other support services as the Commission may deem advisable
and as may be authorized by law.
(f) Use of Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as Federal agencies
and shall, for purposes of the frank, be considered a commission of
Congress as described in section 3215 of title 39, United States Code.
(g) Printing.--For purposes of costs relating to printing and
binding, including the cost of personnel detailed from the Government
Printing Office, the Commission shall be deemed to be a committee of
the Congress.
SEC. 9. TASK FORCES.
(a) In General.--For purposes of making and compiling
recommendations of the Commission for submission to the Congress
pursuant to section 5, the Commission shall establish such task forces
and designate such departments, agencies, and instrumentalities of the
Federal Government as it determines necessary or appropriate to
effectively obtain the expeditious attainment of the objectives
specified in section 3.
(b) Agency Cooperation.--Each department, agency, and
instrumentality designated by the Commission pursuant to subsection (a)
in connection with one or more task forces specified in subsection (a)
shall assign to the Commission representatives of such department,
agency, or instrumentality for service on such task forces. The
Commission, and each department, agency, and instrumentality designated
for service on a task force under this section, shall provide such
staff and administrative support services to the task force as may be
necessary and appropriate, in accordance with procedures which shall be
prescribed by the Commission.
(c) Duties of Task Forces.--The Commission shall assign each task
force a deadline for submitting its recommendations to the Commission
and shall inform each House of the Congress of the convening of each
task force and the deadline assigned to it. Each task force convened
pursuant to subsection (a) shall, by such date as shall be specified by
the Commission, provide the Commission with its recommendations for
attaining the goals addressed by the task force, together with
appropriate timetables for achieving such goals.
(d) Separate Reports and Termination.--Upon submission by each task
force of its recommendations to the Commission, the task force shall
submit to each House of the Congress a copy of its recommendations to
the Commission, and shall thereupon terminate.
SEC. 10. CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS.
(a) Introduction of Recommendations and Committee Consideration.--
(1) Introduction.--The legislative language transmitted
pursuant to section 5(b) with the recommendations for reform of
the Commission shall be in the form of a bill (in this title
referred to as the ``reform bill''). Such reform bill shall be
introduced in the House of Representatives by the Speaker, and
in the Senate, by the Majority Leader, on the first day of
session ending after receipt of the language and such reform
bill shall be referred to the appropriate committee of Congress
under paragraph (2). If the reform bill is not introduced in
accordance with the preceding sentence, the reform bill may be
introduced in either House of Congress by any member thereof.
(2) Committee consideration.--
(A) Referral.--A reform bill introduced in the
House of Representatives shall be referred to the
Committee on Ways and Means of the House of
Representatives. A reform bill introduced in the Senate
shall be referred to the Committee on Finance of the
Senate.
(B) Reporting.--Not later than 30 days after the
introduction of the reform bill, the committee of
Congress to which the reform bill was referred shall
report the bill or a committee amendment thereto.
(C) Discharge of committee.--If the committee to
which is referred a reform bill has not reported such
reform bill (or an identical reform bill) at the end of
30 calendar days after its introduction or at the end
of the first day after there has been reported to the
House involved a reform bill, whichever is earlier,
such committee shall be deemed to be discharged from
further consideration of such reform bill and such
reform bill shall be placed on the appropriate calendar
of the House involved.
(b) Expedited Procedure.--
(1) Consideration.--
(A) In general.--Not later than 2 days after the
date on which a committee has been discharged from
consideration of a reform bill, the Speaker of the
House of Representatives, or the Speaker's designee, or
the Majority Leader of the Senate, or the Leader's
designee, shall move to proceed to the consideration of
the committee amendment to the reform bill, and if
there is no such amendment, to the reform bill. It
shall also be in order for any member of the House of
Representatives or the Senate, respectively, to move to
proceed to the consideration of the reform bill at any
time after the conclusion of such 2-day period.
(B) Points of order waived.--All points of order
against the reform bill (and against consideration of
the reform bill) are waived.
(C) Motion to proceed.--A motion to proceed to the
consideration of the reform bill is highly privileged
in the House of Representatives and is privileged in
the Senate and is not debatable. The motion is not
subject to amendment, to a motion to postpone
consideration of the reform bill, or to a motion to
proceed to the consideration of other business. A
motion to reconsider the vote by which the motion to
proceed is agreed to or not agreed to shall not be in
order. If the motion to proceed is agreed to, the House
of Representatives or the Senate, as the case may be,
shall immediately proceed to consideration of the
reform bill without intervening motion, order, or other
business, and the reform bill shall remain the
unfinished business of the House of Representatives or
the Senate, as the case may be, until disposed of.
(D) Limited debate.--Debate on the reform bill and
on all debatable motions and appeals in connection
therewith shall be limited to not more than the lesser
of 100 hours or 14 days, which shall be divided equally
between those favoring and those opposing the reform
bill. A motion further to limit debate on the reform
bill is in order and not debatable.
(E) Amendments.--
(i) Consideration in the house of
representatives.--Subject to clause (iii),
amendments to the reform bill during
consideration in the House of Representatives
shall be limited in accordance with a rule
adopted by the Committee on Rules of the House
of Representatives.
(ii) Consideration in the senate.--Subject
to clause (iii), amendments to the reform bill
during consideration in the Senate shall be
limited to--
(I) one first degree amendment per
member or that member's designee with 1
hour of debate equally divided; and
(II) germane second degree
amendments (without limit) with 30
minutes of debate equally divided.
(iii) Leadership amendments.--The Speaker
of the House of Representatives and the
Minority Leader of the House of Representatives
and the Majority Leader of the Senate and the
Minority Leader of the Senate may each offer 1
first degree amendment (in addition to the
amendments afforded such members under clause
(i) or (ii)), with 4 hours of debate equally
divided on each such amendment offered. No
second degree amendments may be offered by the
Speaker of the House of Representatives, the
Minority Leader of the House of
Representatives, the Majority Leader of the
Senate, or the Minority Leader of the Senate in
their leadership capacities.
(F) Vote on final passage.--Immediately following
the conclusion of the debate on the reform bill, and on
all amendments offered to the reform bill, and all
votes required on amendments offered to the reform
bill, the vote on final passage of the reform bill
shall occur.
(G) Other motions not in order.--A motion to
postpone consideration of the reform bill, a motion to
proceed to the consideration of other business, or a
motion to recommit the reform bill is not in order. A
motion to reconsider the vote by which the reform bill
is agreed to or not agreed to is not in order.
(H) Appeals.--Appeals from the decisions of the
Chair relating to the application of the rules of the
House of Representatives or of the Senate, as the case
may be, to the procedure relating to the reform bill
shall be decided without debate.
(2) Consideration by other house.--If, before the passage
by one House of the reform bill that was introduced in such
House, such House receives from the other House a reform bill
as passed by such other House--
(A) the reform bill of the other House shall be
subject to the same rules as the rules under this
section governing the reform bill introduced in the
receiving House; and
(B) the procedure in the House in receipt of the
reform bill of the other House, with respect to the
reform bill that was introduced in the House in receipt
of the reform bill of the other House, shall be the
same as if no reform bill had been received from the
other House.
Upon passage of a reform bill by either House (or upon adoption
of an amendment by either House to a reform bill received from
the other House), it shall no longer be in order in the House
passing such bill (or amendment) to consider any other reform
bill under this section.
(3) Consideration in conference.--
(A) Convening of conference.--
(i) In general.--Immediately upon a final
passage of the reform bill that results in a
disagreement between the two Houses of Congress
with respect to the bill, the conferees
described in clause (ii) shall be appointed and
a conference convened.
(ii) Conferees described.--The conferees
described in this clause are the following:
(I) The Speaker of the House of
Representatives.
(II) The Minority Leader of the
House of Representatives.
(III) The Majority Leader of the
Senate.
(IV) The Minority Leader of the
Senate.
(V) Each member of the Committee on
Ways and Means of the House of
Representatives.
(VI) Each member of the Committee
on Finance of the Senate.
(B) Deadline for report.--Not later than 14 days
after the date on which conferees are appointed, the
conferees shall file a report with the House of
Representatives and the Senate resolving the
differences between the Houses on the reform bill.
(C) Limitation on scope.--A report filed under
subparagraph (B) shall be limited to resolution of the
differences between the Houses on the reform bill and
shall not include any other matter.
(D) House consideration.--
(i) In general.--Notwithstanding any other
rule of the House of Representatives, it shall
be in order to immediately consider a report of
a committee of conference on the reform bill
filed in accordance with subparagraph (B).
(ii) Debate.--Debate in the House of
Representatives on the conference report shall
be limited to the lesser of 50 hours or 7 days,
equally divided and controlled by the Speaker
of the House of Representatives and the
Minority Leader of the House of Representatives
or their designees.
(iii) Limitation on motions.--A motion to
further limit debate on the conference report
is not debatable. A motion to recommit the
conference report is not in order, and it is
not in order to move to reconsider the vote by
which the conference report is agreed to or
disagreed to.
(iv) Vote on final passage.--A vote on
final passage of the conference report shall
occur immediately at the conclusion or yielding
back of all time for debate on the conference
report.
(E) Senate consideration.--
(i) In general.--The motion to proceed to
consideration in the Senate of the conference
report shall not be debatable and the reading
of such conference report shall be deemed to
have been waived.
(ii) Debate.--Consideration in the Senate
of the conference report on a reform bill shall
be limited to the lesser of 50 hours or 7 days,
equally divided and controlled by the Majority
Leader and the Minority Leader or their
designees.
(iii) Limitation on motion to recommit.--A
motion to recommit the conference report is not
in order.
(4) Rules of the senate and house of representatives.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the
Senate and House of Representatives, respectively, and
is deemed to be part of the rules of each House,
respectively, but applicable only with respect to the
procedure to be followed in that House in the case of a
bill, and it supersedes other rules only to the extent
that it is inconsistent with such rules; and
(B) with full recognition of the constitutional
right of either House to change the rules (so far as
they relate to the procedure of that House) at any
time, in the same manner, and to the same extent as in
the case of any other rule of that House.
SEC. 11. TERMINATION.
The Commission shall terminate 30 days after transmitting its
recommendations pursuant to section 5.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for the activities of the Commission. In order to provide
funding before funds are otherwise specifically appropriated for such
activities, of the amounts appropriated to the Department of the
Treasury under the account ``Departmental Offices--Salaries and
Expenses'' there is hereby transferred to the Commission $2,000,000 for
such activities, which amount shall remain available until expended.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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