[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 628 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 628

  To amend the Internal Revenue Code of 1986 to provide a rebate of a 
             portion of the Federal budget surplus in 2001.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2001

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

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a rebate of a 
             portion of the Federal budget surplus in 2001.

    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 ``America's Prosperity Dividend Act of 
2001''.

SEC. 2. FEDERAL BUDGET SURPLUS REBATE.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 (relating to rules of special application in the case of 
abatements, credits, and refunds) is amended by adding at the end the 
following new section:

``SEC. 6428. CREDIT AGAINST INDIVIDUAL INCOME AND EMPLOYMENT TAXES.

    ``(a) General Rule.--Except as otherwise provided in this section, 
each individual shall be treated as having made a payment against the 
tax imposed by chapter 1 for any taxable year beginning in 2001, in an 
amount equal to the lesser of--
            ``(1) the amount of the taxpayer's liability for tax for 
        the taxpayer's last taxable year beginning in calendar year 
        2000, or
            ``(2) the taxpayer's applicable amount.
    ``(b) Liability for Tax.--For purposes of this section, the 
liability for tax for the taxable year shall be the sum of--
            ``(1) the excess (if any) of--
                    ``(A) the sum of--
                            ``(i) the taxpayer's regular tax liability 
                        (within the meaning of section 26(b)) for the 
                        taxable year, and
                            ``(ii) the tax imposed by section 55(a) 
                        with respect to such taxpayer for the taxable 
                        year, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A of chapter 1 (other than sections 
                31, 33, and 34) for the taxable year, and
            ``(2) the taxes imposed by sections 1401, 3101, 3111, 
        3201(a), 3211(a)(1), and 3221(a) on amounts received by the 
        taxpayer for the taxable year.
    ``(c) Applicable Amount.--For purposes of this section, the 
applicable amount for any taxpayer shall be determined by the 
Secretary--
            ``(1) taking into account the number of such taxpayers and 
        a Federal budget surplus amount of $60,000,000,000, and
            ``(2) by providing that--
                    ``(A) the applicable amount for any taxpayer 
                described in section 1(a) is twice the amount for a 
                taxpayer described in section 1(c), and
                    ``(B) the applicable amount for any taxpayer 
                described in section 1(b) is $150 more than the amount 
                for a taxpayer described in section 1(c).
    ``(d) Date Payment Deemed Made.--
            ``(1) In general.--The payment provided by this section 
        shall be deemed made on the date of the enactment of this 
        section.
            ``(2) Remittance of payment.--The Secretary shall remit to 
        each taxpayer the payment described in paragraph (1) on the 
        date which is 60 days after such date of enactment.
    ``(e) Certain Persons Not Eligible.--This section shall not apply 
to--
            ``(1) any individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which such individual's 
        taxable year begins,
            ``(2) any estate or trust, or
            ``(3) any nonresident alien individual.''.
    (b) Conforming Amendment.--Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting before the period ``, or enacted 
by the America's Prosperity Dividend Act of 2001''.
    (c) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

                              ``Sec. 6428. Credit against individual 
                                        income and employment taxes.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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