A bill to permit one-half of the budget surplus for any fiscal year to be applied against the public debt and to provide that one-half of such surplus shall be applied as tax credits against individual income taxes.

Provides, under the Internal Revenue Code, that if there is a budget surplus for the fiscal year ending June 30, 1971, or for any fiscal year thereafter, there shall be allowed to each individual, as a credit against income tax for his first taxable year ending after the close of such fiscal year, an amount determined by multiplying: the amount of tax imposed under the Internal Revenue Code for the taxable year, reduced by the sum of the credits allowable for such year a percentage determined by the Secretary of the Treasury. Provides that the Secretary shall estimate such percentage as follows: (1) first, he shall estimate the amount of individual income taxes that will be received in the Treasury during the calendar year in which such fiscal year ends; and (2) then he shall determine that percentage which one-half of the budget surplus for such fiscal year is of the amount estimated under part (1). (Adds 36 U.S.C. 39)