[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 603 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 603

   To provide for full voting representation in the Congress for the 
  citizens of the District of Columbia, to amend the Internal Revenue 
   Code of 1986 to provide that individuals who are residents of the 
District of Columbia shall be exempt from Federal income taxation until 
 such full voting representation takes effect, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 23, 2001

 Mr. Lieberman (for himself and Mr. Feingold) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To provide for full voting representation in the Congress for the 
  citizens of the District of Columbia, to amend the Internal Revenue 
   Code of 1986 to provide that individuals who are residents of the 
District of Columbia shall be exempt from Federal income taxation until 
 such full voting representation takes effect, 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 ``No Taxation Without Representation 
Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds as follows:
            (1) The residents of the District of Columbia are the only 
        Americans who pay Federal income taxes but are denied voting 
        representation in the House of Representatives and the Senate.
            (2) The principle of one person, one vote requires that 
        residents who have met every element of American citizenship 
        should have every benefit of American citizenship, including 
        voting representation in the House and the Senate.
            (3) The residents of the District of Columbia are twice 
        denied equal representation, because they do not have voting 
        representation as other taxpaying Americans do and are 
        nevertheless required to pay Federal income taxes unlike the 
        Americans who live in the territories.
            (4) Despite the denial of voting representation, Americans 
        in the Nation's capital are second among the residents of all 
        States in per capita income taxes paid to the Federal 
        Government.
            (5) Unequal voting representation in our representative 
        democracy is inconsistent with the founding principles of the 
        Nation and the strongly held principles of the American people 
        today.

SEC. 3. REPRESENTATION IN CONGRESS FOR DISTRICT OF COLUMBIA.

    Notwithstanding any other provision of law, the community of 
American citizens who are residents of the District constituting the 
seat of government of the United States shall have full voting 
representation in the Congress.

SEC. 4. EXEMPTION FROM TAX FOR INDIVIDUALS WHO ARE RESIDENTS OF THE 
              DISTRICT OF COLUMBIA.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 138 the 
following new section:

``SEC. 138A. RESIDENTS OF THE DISTRICT OF COLUMBIA.

    ``(a) Exemption For Residents During Years Without Full Voting 
Representation in Congress.--This section shall apply with respect to 
any taxable year during which residents of the District of Columbia are 
not represented in the House of Representatives and Senate by 
individuals who are elected by the voters of the District and who have 
the same voting rights in the House of Representatives and Senate as 
Members who represent States.
    ``(b) Residents For Entire Taxable Year.--An individual who is a 
bona fide resident of the District of Columbia during the entire 
taxable year shall be exempt from taxation under this chapter for such 
taxable year.
    ``(c) Taxable Year of Change of Residence From District of 
Columbia.--
            ``(1) In general.--In the case of an individual who has 
        been a bona fide resident of the District of Columbia for a 
        period of at least 2 years before the date on which such 
        individual changes his residence from the District of Columbia, 
        income which is attributable to that part of such period of 
        District of Columbia residence before such date shall not be 
        included in gross income and shall be exempt from taxation 
        under this chapter.
            ``(2) Deductions, etc. allocable to excluded amounts not 
        allowable.--An individual shall not be allowed--
                    ``(A) as a deduction from gross income any 
                deductions (other than the deduction under section 151, 
                relating to personal exemptions), or
                    ``(B) any credit,
        properly allocable or chargeable against amounts excluded from 
        gross income under this subsection.
    ``(d) Determination of Residency.--
            ``(1) In general.--For purposes of this section, the 
        determination of whether an individual is a bona fide resident 
        of the District of Columbia shall be made under regulations 
        prescribed by the Secretary.
            ``(2) Individuals registered to vote in other 
        jurisdictions.--No individual may be treated as a bona fide 
        resident of the District of Columbia for purposes of this 
        section with respect to a taxable year if at any time during 
        the year the individual is registered to vote in any other 
        jurisdiction.''.
    (b) No Wage Withholding.--Paragraph (8) of section 3401(a) of such 
Code is amended by adding at the end the following new subparagraph:
                    ``(E) for services for an employer performed by an 
                employee if it is reasonable to believe that during the 
                entire calendar year the employee will be a bona fide 
                resident of the District of Columbia unless section 
                138A is not in effect throughout such calendar year; 
                or''.
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 138 the following new item:

                              ``Sec. 138A. Residents of the District of 
                                        Columbia.''
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Withholding.--The amendment made by subsection (b) 
        shall apply to remuneration paid after the date of the 
        enactment of this Act.
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