[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 583 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 583

To change the date on which individual Federal income tax returns must 
    be filed to the Nation's Tax Freedom Day, the day on which the 
country's citizens no longer work to pay taxes, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 15, 1997

   Mr. Gregg introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To change the date on which individual Federal income tax returns must 
    be filed to the Nation's Tax Freedom Day, the day on which the 
country's citizens no longer work to pay taxes, 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 Filing On Tax Freedom Day Act of 
1997''.

SEC. 2. TAX FILING ON TAX FREEDOM DAY.

    (a) In General.--Each year, in time to be included in the 
instruction and information booklets that accompany the year's 
individual income tax returns, the Secretary of the Treasury (in this 
Act referred to as the ``Secretary'') shall determine the year's Tax 
Freedom Day pursuant to subsection (d).
    (b) Due Date for Taxes.--Notwithstanding any other provision of 
law, Federal individual income tax returns for each year shall be due 
on the date of the Tax Freedom Day in the subsequent year (rather than 
April 15th).
    (c) Information Provided.--The Secretary shall include in the 
instruction and information booklets a prominent section that provides 
the following information with respect to the Tax Freedom Day:
            (1) An explanation of Tax Freedom Day and what it 
        signifies.
            (2) A statement that Congress provided for Federal 
        individual income tax returns to be due on Tax Freedom Day to 
        emphasize how long the average citizen works to pay government 
        taxes.
            (3) During leap years, a note that the year's Tax Freedom 
        Day appears one calendar day earlier than normal.
            (4) A chart showing how the Tax Freedom Day's date has 
        changed over time.
            (5) Information on the State and Federal components of the 
        total tax burden, and how the Tax Freedom Day would differ on a 
        State-by-State basis.
    (d) Determination of Tax Freedom Day.--Each year, the Secretary 
shall determine the Tax Freedom Day as follows:
            (1) Tax foundation.--By contacting and receiving the date 
        from the Tax Foundation (which has been determining and 
        publishing a Tax Freedom Day since 1973), in time to meet the 
        informational requirements of subsection (c), as long as the 
        Tax Foundation maintains its--
                    (A) status as a non-profit, non-partisan research 
                and public education organization;
                    (B) consistent method of analysis with respect to 
                determining Tax Freedom Day (unless a change results in 
                a demonstrably much more accurate determination); and
                    (C) trademark on Tax Freedom Day.
            (2) Requirements not met.--If the Tax Foundation--
                    (A) fails to maintain any of the requirements 
                described in paragraph (1), or
                    (B) does not provide such information to the 
                Secretary in a timely manner after the Secretary's 
                request for the information,
        then the Secretary shall determine the year's Tax Freedom Day 
        in accordance with paragraph (3).
            (3) Determination by the secretary.--If either subparagraph 
        (A) or (B) of paragraph (2) are met, then the Secretary shall 
        determine the year's Tax Freedom Day--
                    (A) by assuming that income is earned evenly 
                throughout the year and that individuals initially 
                devote all of their earnings to paying income taxes;
                    (B) by calculating an effective tax rate for the 
                Nation, by dividing the per capita income tax burden 
                (including Federal, State and local taxes) by per 
                capita income (using the net national product, a 
                component of the national income product accounts, as 
                compiled annually by the Bureau of Economic Analysis of 
                the Department of Commerce);
                    (C) by multiplying the effective tax rate 
                determined in subparagraph (B) by the number of days in 
                the year; and
                    (D) by ensuring that a consistent methodology is 
                utilized from year-to-year, and altering the existing 
                methodology only if the new methodology is demonstrably 
                much more accurate.
        The resultant total shall signify the number of days the 
        average citizen devotes to paying taxes, and the corresponding 
        calendar day shall be the Tax Freedom Day.

SEC. 3. EFFECTIVE DATE AND SECRETARIAL SUBMISSION.

    (a) Effective Date.--This Act shall take effect for taxable years 
beginning after December 31, 1997.
    (b) Secretarial Submission.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary shall submit to the 
appropriate committees of the Congress a legislative proposal providing 
for such technical and conforming amendments in the law as are required 
by the provisions of this Act.
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