[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2019 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 2019
To amend the Internal Revenue Code of 1986 to improve revenue
collection and to provide that a taxpayer conscientiously opposed to
participation in war may elect to have such taxpayer's income, estate,
or gift tax payments spent for nonmilitary purposes, to create the
United States Peace Tax Fund to receive such tax payments, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 1993
Mr. Jacobs (for himself, Mr. Kopetski, and Ms. Pelosi) introduced the
following bill; which was referred jointly to the Committees on Ways
and Means, Education and Labor, and Foreign Affairs
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to improve revenue
collection and to provide that a taxpayer conscientiously opposed to
participation in war may elect to have such taxpayer's income, estate,
or gift tax payments spent for nonmilitary purposes, to create the
United States Peace Tax Fund to receive such tax payments, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be
cited as the ``United States Peace Tax Fund Act''.
SEC. 2. FINDINGS AND POLICY.
(a) Findings.--The Congress finds that for a significant minority
of Americans, sincere conscientious objection to participation in war
in any form means that such Americans cannot in conscience pay the
portion of their taxes that would support military expenditures.
(b) Policy.--It is the policy of the Congress--
(1) to improve revenue collections and to allow
conscientious objectors to pay their full tax liability without
violating their moral, ethical, or religious beliefs;
(2) to reduce the present administrative and judicial
burden created by conscientious objectors who violate tax laws
rather than violate their consciences;
(3) to recognize conscientious objector status with regard
to the payment of taxes for military purposes; and
(4) to provide a mechanism for congressional appropriations
of such funds for nonmilitary purposes.
SEC. 3. UNITED STATES PEACE TAX FUND.
(a) Creation of Trust Fund.--There is hereby established within the
Treasury of the United States a special trust fund to be known as the
``United States Peace Tax Fund'' (hereinafter referred to as the
``Fund''). The Fund shall consist of such amounts as may be transferred
to the Fund as provided in this section.
(b) Transfer to Fund of Amounts Equivalent to Certain Taxes.--
(1) In general.--There are hereby transferred to the Fund
amounts equivalent to the sum of the amounts designated during
the fiscal year by individuals under sections 2210, 2506, and
6099 of the Internal Revenue Code of 1986 for payment into the
Fund. Such amounts shall be deposited into the Fund and shall
be available only for the purposes provided in this Act.
(2) Method of transfer.--The amounts transferred by
paragraph (1) shall be transferred at least monthly from the
general fund of the Treasury to the Fund on the basis of
estimates by the Secretary of the Treasury of the amounts,
referred to in paragraph (1), received in the Treasury. Proper
adjustments shall be made in the amounts subsequently
transferred to the extent that prior estimates were in excess
of or less than the amounts required to be transferred.
(3) Report.--It shall be the duty of the Secretary of the
Treasury to report to the Committees on Appropriations of the
House of Representatives and the Senate each year on the total
amount transferred into the Fund during the preceding fiscal
year. Such report shall be printed in the Congressional Record
upon receipt by the committees.
SEC. 4. INCOME TAX PAYMENTS TO UNITED STATES PEACE TAX FUND.
(a) In General.--Subchapter A of chapter 61 of the Internal Revenue
Code of 1986 (relating to information and records) is amended by adding
at the end thereof the following new part:
``PART IX--DESIGNATION OF INCOME TAX PAYMENTS FOR TRANSFER TO UNITED
STATES PEACE TAX FUND
``Sec. 6099. Designation by individuals.
``SEC. 6099. DESIGNATION BY INDIVIDUALS.
``(a) In General.--Every eligible individual (other than a
nonresident alien) whose income tax liability for any taxable year is
$1 or more may designate that such individual's income tax payment for
such year shall be paid into the United States Peace Tax Fund
established by section 3 of the United States Peace Tax Fund Act.
``(b) Definitions.--As used in this section--
``(1) Eligible individual.--
``(A) In general.--The term `eligible individual'
means an individual who by reason of religious training
and belief is conscientiously opposed to participation
in war in any form, and who--
``(i) has been exempted or discharged from
combatant service and training in the Armed
Forces of the United States as a conscientious
objector under section 6(j) of the Military
Selective Service Act (50 U.S.C. App. 456(j)),
or corresponding law, or
``(ii) certified in a statement in a
questionnaire return made under section 6039F
that such individual is conscientiously opposed
to participation in war in any form within the
meaning of section 6(j) of such Act.
``(B) Verification.--
``(i) Questionnaire return receipt.--Any
taxpayer who makes a designation under
subsection (a) shall attach the questionnaire
return receipt provided under section 6039F(b)
to such taxpayer's return of tax.
``(ii) Additional information may be
required.--The Secretary may require any
taxpayer who makes a designation under
subsection (a) to provide such additional
information as may be necessary to verify such
taxpayer's status as an eligible individual.
``(C) Denial of designation.--If the Secretary
determines that a taxpayer who makes the designation
provided for by subsection (a) is not an eligible
individual and is not entitled to make such
designation, then the Secretary, upon written notice to
the taxpayer stating the reasons for denial, may deny
the designation. The taxpayer may challenge the
Secretary's ruling by bringing an action in the United
States Tax Court or in the United States district court
for the district of such taxpayer's residence, for a
declaratory judgment as to whether the taxpayer is an
eligible individual and entitled to make such a
designation.
``(2) Income tax liability.--The term `income tax
liability' means the amount of the tax imposed by chapter 1 on
a taxpayer for any taxable year (as shown on such taxpayer's
tax return) reduced by the sum of--
``(A) the credits (as shown in such return)
allowable under part IV of subchapter A of chapter 1
(other than subpart C thereof), and
``(B) the amount designated under section 6096.
``(3) Income tax payment.--The term `income tax payment'
means the amount of taxes imposed by chapter 1 and paid by or
withheld from a taxpayer for any taxable year not in excess of
such taxpayer's income tax liability.
``(c) Manner and Time of Designation.--A designation under
subsection (a) may be made with respect to any taxable year either--
``(1) at the time of filing the return of the tax imposed
by chapter 1 for such taxable year, or
``(2) at any other time (after the time of filing the
return of the tax imposed by chapter 1 for such taxable year)
specified in regulations prescribed by the Secretary.
Such designation shall be made in such manner as the Secretary
prescribes by regulations except that, if such designation is made at
the time of filing the return of the tax imposed by chapter 1 for such
taxable year, such designation shall be made on the page bearing the
taxpayer's signature.
``(d) Special Rule in the Case of Joint Return.--In the case of an
eligible individual filing a joint return, upon the consent of such
individual's spouse, the joint income tax payment may be designated
pursuant to subsection (a).
``(e) Explanation of United States Peace Tax Fund Purposes.--Each
publication of general instructions accompanying an income tax return
or a questionnaire return described in section 6039F shall include--
``(1) an explanation of the purpose of the United States
Peace Tax Fund,
``(2) the criteria for determining whether an individual
meets the requirements of section 6(j) of the Military
Selective Service Act (50 U.S.C. App. 456(j)), and
``(3) an explanation of the process for making the
designation provided by this section.''.
(b) Clerical Amendments.--The table of parts of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 is amended by adding at
the end thereof the following:
``Part IX.--Designation of income tax
payments for transfer to United
States Peace Tax Fund.''.
(c) Designation Information.--
(1) Subpart A of part III of subchapter A of chapter 61 of
the Internal Revenue Code of 1986 (relating to information and
returns) is amended by adding at the end thereof the following
new section:
``SEC. 6039F. UNITED STATES PEACE TAX FUND DESIGNATION INFORMATION.
``(a) Questionnaire Return.--Every taxpayer who makes a designation
provided by section 6099(a) for any taxable year shall make a
questionnaire return during such year for the purpose of determining
whether the taxpayer is an eligible individual (within the meaning of
section 6099(b)(1)). The questionnaire return shall request the
taxpayer to certify such taxpayer's beliefs about participation in war,
the source or genesis of such beliefs, and how the beliefs affect the
taxpayer's life.
``(b) Questionnaire Return Receipt.--Upon receipt of the
questionnaire return, the Secretary shall issue a receipt to the
taxpayer indicating timely filing of such return.''.
(2) The table of sections for such subpart is amended by
adding at the end thereof the following new item:
``Sec. 6039F. United States Peace Tax
Fund designation
information.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to--
(1) taxable years beginning after December 31, 1993, and
(2) any taxable year ending before January 1, 1994, for
which the time for filing a claim for refund or credit of an
overpayment of tax has not expired on the date of the enactment
of this Act.
(e) Rules Applicable to Returns of Tax for Taxable Years Ending
Before January 1, 1994.--
(1) Penalties for failure to pay tax.--Any civil or
criminal penalty imposed on an individual for failing or
refusing to pay all or a part of the tax imposed by chapter 1
of the Internal Revenue Code of 1986 shall be vacated and set
aside if the person upon whom the penalty was imposed--
(A) pays the tax due (with interest), and
(B) establishes to the satisfaction of the
Secretary of the Treasury that the failure or refusal
to pay was based upon such person's conscientious
objection to participation in war in any form within
the meaning of section 6099(b)(1)(A) of such Code
(defining eligible individual).
(2) Disposition of amounts collected.--There are hereby
transferred to the Fund amounts equivalent to the sum of the
amounts paid into the Treasury by persons under the provisions
of paragraph (1). Such amounts shall be deposited into the Fund
and shall be available only for the purposes provided in this
Act.
SEC. 5. ESTATE TAX PAYMENTS TO UNITED STATES PEACE TAX FUND.
(a) In General.--Subchapter C of chapter 11 of the Internal Revenue
Code of 1986 is amended by adding at the end thereof the following new
section:
``SEC. 2210. DESIGNATION OF ESTATE TAX PAYMENTS FOR TRANSFER TO UNITED
STATES PEACE TAX FUND.
``An eligible individual (within the meaning of section 6099(b)(1))
may elect that the tax imposed by section 2001 on the taxable estate of
such individual shall be transferred when paid to the United States
Peace Tax Fund established under section 3 of the United States Peace
Tax Fund Act. The election may be made by the executor or administrator
of the estate under written authority of the decedent. Such election
shall be made in such manner as the Secretary shall by regulations
prescribe.''.
(b) Clerical Amendment.--The table of sections for subchapter C of
chapter 11 of the Internal Revenue Code of 1986 is amended by adding at
the end thereof the following:
``Sec. 2210. Designation of estate tax
payments for transfer to United
States Peace Tax Fund.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to the estates of decedents dying after December 31,
1993.
SEC. 6. GIFT TAX PAYMENTS TO UNITED STATES PEACE TAX FUND.
(a) In General.--Subchapter A of chapter 12 of the Internal Revenue
Code of 1986 is amended by adding at the end thereof the following new
section:
``SEC. 2506. DESIGNATION OF GIFT TAX PAYMENTS FOR TRANSFER TO UNITED
STATES PEACE TAX FUND.
``An eligible individual (within the meaning of section 6099(b)(1))
may elect that the tax imposed by section 2501 shall be transferred
when paid to the United States Peace Tax Fund established under section
3 of the United States Peace Tax Fund Act. The election shall be made
in such manner as the Secretary shall by regulations prescribe.''.
(b) Clerical Amendment.--The table of contents for subchapter A of
chapter 12 of the Internal Revenue Code of 1986 is amended by adding at
the end thereof the following:
``Sec. 2506. Designation of gift tax
payments for transfer to United
States Peace Tax Fund.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to gifts made after December 31, 1993.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
(a) Certification by Comptroller General.--As soon after the close
of each fiscal year as may be practicable, the Comptroller General
shall determine and certify to the Congress and to the President the
percentage of actual appropriations made for a military purpose with
respect to such fiscal year. The certification shall be published in
the Congressional Record upon receipt by the Congress.
(b) Authorization of Appropriations.--There is hereby authorized to
be appropriated each year a certain portion of the Fund for obligation
and expenditure in accordance with the provisions of this Act. Such
portion is equal to an amount which is the sum of--
(1) the product of--
(A) all funds transferred to the Fund in each
fiscal year, times
(B) the percentage determined under subsection (a)
for such fiscal year, plus
(2) all funds in the Fund previously authorized to be
appropriated under this subsection but not yet appropriated
pursuant to this Act.
Funds remaining in the Fund shall accrue interest according to the
prevailing rate in long-term Government bonds.
(c) Surplus Covered Into General Fund.--The remaining portion of
the Fund after the application of subsection (b) is hereby covered into
the general fund of the Treasury of the United States. No part of the
funds transferred to the general fund under this subsection shall be
appropriated for any expenditures, or otherwise obligated, for a
military purpose.
SEC. 8. ELIGIBLE APPROPRIATIONS.
(a) Payments.--Funds appropriated pursuant to the authorization
under section 7(b) shall be available, as provided in the appropriation
Acts, to make grants, loans, or other arrangements for eligible
activities described in subsection (c).
(b) Eligible Activities.--The following activities are eligible to
receive funds under subsection (a)
(1) Special Supplemental Food Program for Women, Infants
and Children (WIC);
(2) Head Start;
(3) United States Institute of Peace; and
(4) Peace Corps;
(c) Displacement of Other Funds.--It is the intent of this Act that
the Fund shall not operate to release funds for military expenditures
which, were it not for the existence of the Fund, would otherwise have
been appropriated for nonmilitary expenditures.
SEC. 9. DEFINITIONS.
For the purposes of this Act--
(1) The term ``military purpose'' means any activity or
program conducted, administered, or sponsored by an agency of
the Government which affects an augmentation of military
forces, defensive and offensive intelligence activities, or
enhances the capability of any person or nation to wage war.
(2) The term ``actual appropriations made for a military
purpose'' includes, but is not limited to, amounts appropriated
by the United States in connection with--
(A) the Department of Defense;
(B) the Central Intelligence Agency;
(C) the National Security Council;
(D) the Selective Service System;
(E) activities of the Department of Energy that
have a military purpose;
(F) activities of the National Aeronautics and
Space Administration that have a military purpose;
(G) foreign military aid; and
(H) the training, supplying, or maintaining of
military personnel, or the manufacture, construction,
maintenance, or development of military weapons,
installations, or strategies.
(3) The term ``agency'' means each authority of the
Government of the United States, whether or not it is within or
subject to review by another agency, but does not include--
(A) the Congress; or
(B) the courts of the United States.
(4) The term ``person'' includes an individual,
partnership, corporation, association, or public or private
organization other than an agency.
SEC. 10. SEPARABILITY.
If any section, subsection, or other provision of this Act, or the
application thereof to any person or circumstance is held invalid, the
remainder of this Act and the application of such section, subsection,
or other provision to other persons or circumstances shall not be
affected thereby.
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HR 2019 IH----2