[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2182 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2182
To terminate the Internal Revenue Code of 1986, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 20, 2006
Mr. Isakson introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To terminate the Internal Revenue Code of 1986, and for other purposes.
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 Code Termination Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to set a date certain for replacing the
Internal Revenue Code of 1986 with a simple and fair alternative.
SEC. 3. TERMINATION OF INTERNAL REVENUE CODE OF 1986.
(a) In General.--No tax shall be imposed by the Internal Revenue
Code of 1986--
(1) for any taxable year beginning after December 31, 2008;
and
(2) in the case of any tax not imposed on the basis of a
taxable year, on any taxable event or for any period after
December 31, 2008.
(b) Exception.--Subsection (a) shall not apply to taxes imposed
by--
(1) chapter 2 of such Code (relating to tax on self-
employment income);
(2) chapter 21 of such Code (relating to Federal Insurance
Contributions Act); and
(3) chapter 22 of such Code (relating to Railroad
Retirement Tax Act).
SEC. 4. NATIONAL COMMISSION ON TAX REFORM AND SIMPLIFICATION.
(a) Findings.--The Congress finds the following:
(1) The Internal Revenue Code of 1986 is overly complex,
imposes significant burdens on individuals and businesses and
the economy, is extremely difficult for the Internal Revenue
Service to administer, and is in need of fundamental reform and
simplification.
(2) Many of the problems encountered by taxpayers in
dealing with the Internal Revenue Service could be eliminated
or alleviated by fundamental reform and simplification.
(3) Recent efforts to simplify or reform the tax laws have
not been successful due in part to the difficulty of developing
broad-based, nonpartisan support for proposals to make such
changes.
(4) Many of the problems with the Internal Revenue Service
stem from the overly complex tax code the agency is asked to
administer.
(b) Establishment.--
(1) In general.--To carry out the purposes of this section,
there is established within the legislative branch a National
Commission on Tax Reform and Simplification (in this section
referred to as the ``Commission'').
(2) Composition.--The Commission shall be composed of 15
members (of which not less than 2 members are from small
businesses with less than 50 employees), as follows:
(A) Three members appointed by the President, two
from the executive branch of the Government and one
from the private sector.
(B) Four members appointed by the majority leader
of the Senate, one from Members of the Senate and three
from the private sector.
(C) Two members appointed by the minority leader of
the Senate, one from Members of the Senate and one from
the private sector.
(D) Four members appointed by the Speaker of the
House of Representatives, one from Members of the House
and three from the private sector.
(E) Two members appointed by the minority leader of
the House of Representatives, one from Members of the
House and one from the private sector.
(3) Chair.--The Commission shall elect a Chair (or two Co-
Chairs) from among its members.
(4) Meetings, quorums, vacancies.--After its initial
meeting, the Commission shall meet upon the call of the Chair
(Co-Chairs, if elected) or a majority of its members. Nine
members of the Commission shall constitute a quorum. Any
vacancy in the Commission shall not affect its powers, but
shall be filled in the same manner in which the original
appointment was made. Any meeting of the Commission or any
subcommittee thereof may be held in executive session to the
extent that the Chair (Co-Chairs, if elected) or a majority of
the members of the Commission or subcommittee determine
appropriate.
(5) Continuation of membership.--If--
(A) any individual who appointed a member to the
Commission by virtue of holding a position described in
paragraph (2) ceases to hold such position before the
report of the Commission is submitted under subsection
(g); or
(B) a member was appointed to the Commission as a
Member of Congress and the member ceases to be a Member
of Congress, or was appointed to the Commission because
the member was not an officer or employee of any
government and later becomes an officer or employee of
a government,
that member may continue as a member for not longer than the
30-day period beginning on the date that such individual ceases
to hold such position or such member ceases to be a Member of
Congress or becomes such an officer or employee, as the case
may be.
(6) Appointment; initial meeting.--
(A) Appointment.--It is the sense of the Congress
that members of the Commission should be appointed not
more than 60 days after the date of the enactment of
this Act.
(B) Initial meeting.--If, after 60 days from the
date of the enactment of this Act, eight or more
members of the Commission have been appointed, members
who have been appointed may meet and select the Chair
(or Co-Chairs) who thereafter shall have the authority
to begin the operations of the Commission, including
the hiring of staff.
(c) Functions of the Commission.--
(1) In general.--The functions of the Commission shall be--
(A) to conduct, for a period not to exceed 18
months from the date of its first meeting, the review
described in paragraph (2); and
(B) to submit to the Congress a report of the
results of such review, including recommendations for
fundamental reform and simplification of the Internal
Revenue Code of 1986, as described in subsection (g).
(2) Review.--The Commission shall review--
(A) the present structure and provisions of the
Internal Revenue Code of 1986, especially with respect
to--
(i) its impact on the economy (including
the impact on savings, capital formation and
capital investment);
(ii) its impact on families and the
workforce (including issues relating to
distribution of tax burden);
(iii) the compliance cost to taxpayers,
including small businesses and corporations;
and
(iv) the ability of the Internal Revenue
Service to administer such provisions;
(B) whether tax systems imposed under the laws of
other countries could provide more efficient and fair
methods of funding the revenue requirements of the
government;
(C) whether the present income tax system should be
replaced with a flat tax, a national sales tax, or any
other specified tax system;
(D) whether the Internal Revenue Code of 1986 can
be simplified, absent wholesale restructuring or
replacement thereof; and
(E) the transition costs (including the length of
time recommended for a smooth transition) associated
with any changes to the present Federal tax system
(both real and implied) which would be imposed on
citizens, businesses, and the Government.
(d) Powers of the Commission.--
(1) In general.--The Commission or, on the authorization of
the Commission, any subcommittee or member thereof, may, for
the purpose of carrying out the provisions of this section,
hold such hearings and sit and act at such times and places,
take such testimony, receive such evidence, and administer such
oaths, as the Commission or such designated subcommittee or
designated member may deem advisable.
(2) Contracting.--The Commission may, to such extent and in
such amounts as are provided in appropriation Acts, enter into
contracts to enable the Commission to discharge its duties
under this section.
(3) Assistance from federal agencies and offices.--
(A) Information.--The Commission is authorized to
secure directly from any executive department, bureau,
agency, board, commission, office, independent
establishment, or instrumentality of the Government, as
well as from any committee or other office of the
legislative branch, such information, suggestions,
estimates, and statistics as it requires for the
purposes of its review and report. Each such
department, bureau, agency, board, commission, office,
establishment, instrumentality, or committee shall, to
the extent not prohibited by law, furnish such
information, suggestions, estimates, and statistics
directly to the Commission, upon request made by the
Chair (Co-Chairs, if elected).
(B) Treasury department.--The Secretary of the
Treasury is authorized on a nonreimbursable basis to
provide the Commission with administrative services,
funds, facilities, staff, and other support services
for the performance of the Commission's functions.
(C) General services administration.--The
Administrator of General Services shall provide to the
Commission on a nonreimbursable basis such
administrative support services as the Commission may
request.
(D) Joint committee on taxation.--The staff of the
Joint Committee on Taxation is authorized on a
nonreimbursable basis to provide the Commission with
such legal, economic, or policy analysis, including
revenue estimates, as the Commission may request.
(E) Other assistance.--In addition to the
assistance set forth in subparagraphs (A), (B), (C),
and (D), departments and agencies of the United States
are authorized to provide to the Commission such
services, funds, facilities, staff, and other support
services as they may deem advisable and as may be
authorized by law.
(4) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as departments and agencies of the United States.
(5) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property in carrying out its
duties under this section.
(e) Staff of the Commission.--
(1) In general.--The Chair (Co-Chairs, if elected), in
accordance with rules agreed upon by the Commission, may
appoint and fix the compensation of a staff director and such
other personnel as may be necessary to enable the Commission to
carry out its functions without regard to the provisions of
title 5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III or chapter 53 of such title
relating to classification and General Schedule pay rates,
except that no rate of pay fixed under this subsection may
exceed the equivalent of that payable to a person occupying a
position at level V of the Executive Schedule under section
5316 of title 5, United States Code. Any Federal Government
employee may be detailed to the Commission without
reimbursement from the Commission, and such detailee shall
retain the rights, status, and privileges of his or her regular
employment without interruption.
(2) Consultant services.--The Commission is authorized to
procure the services of experts and consultants in accordance
with section 3109 of title 5, United States Code, but at rates
not to exceed the daily rate paid a person occupying a position
at level IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(f) Compensation and Travel Expenses.--
(1) Compensation.--
(A) In general.--Except as provided in subparagraph
(B), each member of the Commission may be compensated
at not to exceed the daily equivalent of the annual
rate of basic pay in effect for a position at level IV
of the Executive Schedule under section 5315 of title
5, United States Code, for each day during which that
member is engaged in the actual performance of the
duties of the Commission.
(B) Exception.--Members of the Commission who are
officers or employees of the United States or Members
of Congress shall receive no additional pay on account
of their service on the Commission.
(2) Travel expenses.--While away from their homes or
regular places of business in the performance of services for
the Commission, members of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, in
the same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703(b)
of title 5, United States Code.
(g) Report of the Commission; Termination.--
(1) Report.--Not later than 18 months after the date of the
first meeting of the Commission, the Commission shall submit a
report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate. The
report of the Commission shall describe the results of its
review (as described in subsection (c)(2)), shall make such
recommendations for fundamental reform and simplification of
the Internal Revenue Code of 1986 as the Commission considers
appropriate, and shall describe the expected impact of such
recommendations on the economy. The measurement of such impact
shall be made using both static and dynamic scoring models.
(2) Termination.--
(A) In general.--The Commission, and all the
authorities of this section, shall terminate on the
date which is 90 days after the date on which the
report is required to be submitted under paragraph (1).
(B) Concluding activities.--The Commission may use
the 90-day period referred to in subparagraph (A) for
the purposes of concluding its activities, including
providing testimony to committees of Congress
concerning its report and disseminating that report.
(h) Authorization of Appropriations.--There is authorized to be
appropriated such sums as may be necessary for the activities of the
Commission. Until such time as funds are specifically appropriated for
such activities, $2,000,000 shall be available from fiscal year 2006
funds appropriated to the Treasury Department, ``Departmental Offices''
account, for the activities of the Commission, to remain available
until expended.
SEC. 5. TIMING OF IMPLEMENTATION.
In order to ensure an easy transition and effective implementation,
the Congress hereby declares that any new Federal tax system shall be
approved by Congress in its final form no later than July 4, 2008. If a
new Federal tax system is not so approved by July 4, 2008, then
Congress shall be required to vote to reauthorize the Internal Revenue
Code of 1986.
<all>