[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 335 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 335
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
January 31, 2001
Mr. DeMint (for himself, Mr. Portman, Mrs. Johnson of Connecticut, Mr.
Schaffer, and Mr. Goode) 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 2001''.
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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