[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5027 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5027

  To provide for the establishment of a commission to review and make 
  recommendations to Congress on the reform and simplification of the 
                     Internal Revenue Code of 1986.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

Mr. DeMint (for himself and Mr. Portman) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To provide for the establishment of a commission to review and make 
  recommendations to Congress on the reform and simplification of the 
                     Internal Revenue Code of 1986.

    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 ``National Advisory Commission on Tax 
Reform and Simplification Act of 2000''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a commission to study and 
report back to Congress recommendations on simplifying, reforming, or 
replacing the Internal Revenue Code of 1986.

SEC. 3. FINDINGS.

    The Congress finds the following:
            (1) The Internal Revenue Code of 1986 is overly complex, 
        imposes significant burdens on individuals, 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--especially those 
        arising from misunderstandings of the Code--could be eliminated 
        or alleviated by fundamental reform and simplification.
            (3) The Internal Revenue Service faces continual difficulty 
        in administering an overly lengthy, complex, and confusing tax 
        code.
            (4) Taxpayers and tax experts have repeatedly called for a 
        simplification of the current tax code.
            (5) The complexity of the current code places a significant 
        burden on individual filers, including extensive record 
        keeping, time requirements to prepare returns, gaining an 
        understanding of the exemptions for which they may qualify, and 
        other burdens. This has forced the majority of taxpayers to 
        turn to tax professionals to prepare their tax returns.
            (6) Congress is continually modifying and correcting the 
        Code, leading to annual uncertainty and only adding to the 
        patchwork of complexity and confusion.
            (7) The Federal Government's present fiscal outlook for 
        continuing and sustained budget surpluses provides a unique 
        opportunity for the Congress to consider measures for 
        fundamental reform and simplification of the tax laws.
            (8) 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.

SEC. 4. ESTABLISHMENT OF A NATIONAL COMMISSION ON TAX REFORM AND 
              SIMPLIFICATION.

    (a) In General.--To carry out the purposes of this Act, there is 
established within the legislative branch a National Advisory 
Commission on Tax Reform and Simplification (in this Act referred to as 
the ``Commission''), comprised of 15 members. The membership of the 
Commission shall be as follows:
            (1) 3 members appointed by the President, 2 from the 
        executive branch of the Government and 1 from private life.
            (2) 4 members appointed by the majority leader of the 
        Senate, 1 from Members of the Senate and 3 from private life.
            (3) 2 members appointed by the minority leader of the 
        Senate, 1 from Members of the Senate and 1 from private life.
            (4) 4 members appointed by the Speaker of the House of 
        Representatives, 1 from Members of the House of Representatives 
        and 3 from private life.
            (5) 2 members appointed by the minority leader of the House 
        of Representatives, 1 from Members of the House of 
        Representatives and 1 from private life.
    (b) Sense of Congress.--It is the sense of Congress that the 
President and congressional leadership should draw from a number of 
important areas of expertise in composing the Commission, including tax 
experts familiar with corporate tax issues, international tax issues, 
small business tax issues, and family and individual tax issues.
    (c) Appointments.--Appointments to the Commission shall be made not 
later than 45 days after the date of the enactment of this Act.

SEC. 5. RULES OF THE COMMISSION.

    (a) Quorum.--Nine members of the Commission shall constitute a 
quorum for conducting the business of the Commission.
    (b) Initial Meeting.--If, after 60 days from the date of the 
enactment of this Act, 5 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) Rules.--The Commission may adopt such other rules as it 
considers appropriate.
    (d) Vacancies.--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.
    (e) Continuation of Membership.--Any individual who appointed a 
member to the Commission by virtue of holding a position described in 
section 4 ceases to hold such position before the report of the 
Commission is submitted, 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.

SEC. 6. DUTIES OF THE COMMISSION.

    (a) In General.--The duties of the Commission shall include--
            (1) to conduct, for a period of not to exceed 18 months 
        from the date of its first meeting, the review described in 
        subsection (b); and
            (2) 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 section 10.
    (b) Review and Issuing Proposals.--The Commission shall review and, 
when applicable, issue proposals on--
            (1) the present structure and provisions of the Internal 
        Revenue Code of 1986, especially with respect to--
                    (A) its impact on the economy (including the impact 
                on savings, capital formation, capital investment, and 
                international trade);
                    (B) its impact on families and the workforce 
                (including issues relating to distribution of tax 
                burden and impact on small businesses);
                    (C) the predictability of the tax code from year to 
                year;
                    (D) the compliance cost to taxpayers and 
                businesses; and
                    (E) the ability of the Internal Revenue Service to 
                administer such provisions;
            (2) whether tax systems imposed under the laws of other 
        countries could provide more efficient, simple, and fair 
        methods of funding the revenue requirements of the Government;
            (3) whether the income tax should be replaced with a tax 
        imposed in a different manner or on a different base; and
            (4) whether the Internal Revenue Code of 1986 can be 
        simplified, absent wholesale restructuring or replacement 
        thereof.

SEC. 7. POWERS OF THE COMMISSION.

    (a) 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 Act, 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.
    (b) 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 Act.
    (c) Assistance From Federal Agencies and Offices.--
            (1) 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).
            (2) 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.
            (3) 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.
            (4) 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.
            (5) Other assistance.--In addition to the assistance set 
        forth in paragraphs (1), (2), (3), and (4), 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.
            (6) 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.
            (7) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property in carrying out its 
        duties under this Act.

SEC. 8. STAFF OF THE COMMISSION.

    (a) 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.
    (b) 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.

SEC. 9. COMPENSATION AND TRAVEL EXPENSES.

    (a) Compensation.--
            (1) In general.--Except as provided in paragraph (2), 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.
            (2) 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.
    (b) 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.

SEC. 10. REPORT OF THE COMMISSION; TERMINATION.

    (a) 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 under section 6(b), 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 and progressivity and general administrability of the tax laws.
    (b) Termination.--
            (1) In general.--The Commission, and all the authorities of 
        this Act, shall terminate on the date which is 90 days after 
        the date on which the report is required to be submitted under 
        subsection (a).
            (2) Concluding activities.--The Commission may use the 90-
        day period referred to in paragraph (1) for the purposes of 
        concluding its activities, including providing testimony to 
        committees of Congress concerning its report and disseminating 
        that report.
    (c) Authorization of Appropriations.--There are 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 2001 
funds appropriated to the Department of the Treasury, ``Departmental 
Offices'' account, for the activities of the Commission, to remain 
available until expended.
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