National Commission on Tax Reform and Simplification

(a)

Findings

The Congress finds the following: (1)The Internal Revenue Code of 1986 is overly complex, imposes significant burdens on individuals and 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 could be eliminated or alleviated by fundamental reform and simplification. (3)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. (4)Many of the problems with the Internal Revenue Service stem from the overly complex tax code the agency is asked to administer. (b)

Establishment

(1)

In general

To carry out the purposes of this section, there is established within the legislative branch a National Commission on Tax Reform and Simplification (in this section referred to as the Commission). (2)

Composition

The Commission shall be composed of 19 members (of which not less than 4 members are from small businesses with less than 50 employees), as follows: (A)Three members appointed by the President, two from the executive branch of the Government and one from the private sector. (B)Four members appointed by the majority leader of the Senate, one from Members of the Senate and three from the private sector. (C)Four members appointed by the minority leader of the Senate, one from Members of the Senate and three from the private sector. (D)Four members appointed by the Speaker of the House of Representatives, one from Members of the House and three from the private sector. (E)Four members appointed by the minority leader of the House of Representatives, one from Members of the House and three from the private sector. (3)

Chair

The Commission shall elect a Chair (or two Co-Chairs) from among its members. (4)

Meetings, quorums, vacancies

After its initial meeting, the Commission shall meet upon the call of the Chair (Co-Chairs, if elected) or a majority of its members. Eleven members of the Commission shall constitute a quorum. 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. (5)

Continuation of membership

If— (A)any individual who appointed a member to the Commission by virtue of holding a position described in paragraph (2) ceases to hold such position before the report of the Commission is submitted under subsection (g); or (B)a member was appointed to the Commission as a Member of Congress and the member ceases to be a Member of Congress, or was appointed to the Commission because the member was not an officer or employee of any government and later becomes an officer or employee of a government,

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 or such member ceases to be a Member of Congress or becomes such an officer or employee, as the case may be.

(6)

Appointment; initial meeting

(A)

Appointment

It is the sense of the Congress that members of the Commission should be appointed not more than 60 days after the date of the enactment of this Act. (B)

Initial meeting

If, after 60 days from the date of the enactment of this Act, eight 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)

Functions of the Commission

(1)

In general

The functions of the Commission shall be— (A)to conduct, for a period not to exceed 18 months from the date of its first meeting, the review described in paragraph (2); and (B)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 subsection (g). (2)

Review

The Commission shall review— (A)the present structure and provisions of the Internal Revenue Code of 1986, especially with respect to— (i)its impact on the economy (including the impact on savings, capital formation and capital investment); (ii)its impact on families and the workforce (including issues relating to distribution of tax burden); (iii)the compliance cost to taxpayers, including small businesses and corporations; and (iv)the ability of the Internal Revenue Service to administer such provisions; (B)whether tax systems imposed under the laws of other countries could provide more efficient and fair methods of funding the revenue requirements of the government; (C)whether the present income tax system should be replaced with a flat tax, a national sales tax, or any other specified tax system; (D)whether the Internal Revenue Code of 1986 can be simplified, absent wholesale restructuring or replacement thereof; and (E)the transition costs (including the length of time recommended for a smooth transition) associated with any changes to the present Federal tax system (both real and implied) which would be imposed on citizens, businesses, and the Government. (d)

Powers of the Commission

(1)

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 section, 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. (2)

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 section. (3)

Assistance from federal agencies and offices

(A)

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). (B)

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. (C)

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. (D)

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. (E)

Other assistance

In addition to the assistance set forth in subparagraphs (A), (B), (C), and (D), 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. (4)

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. (e)

Staff of the Commission

(1)

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. (2)

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. (f)

Compensation and Travel Expenses

(1)

Compensation

(A)

In general

Except as provided in subparagraph (B), 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. (B)

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. (2)

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. (g)

Report of the Commission; Termination

(1)

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 (as described in subsection (c)(2)), 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. The measurement of such impact shall be made using both static and dynamic scoring models. (2)

Termination

(A)

In general

The Commission, and all the authorities of this section, shall terminate on the date which is 90 days after the date on which the report is required to be submitted under paragraph (1). (B)

Concluding activities

The Commission may use the 90-day period referred to in subparagraph (A) for the purposes of concluding its activities, including providing testimony to committees of Congress concerning its report and disseminating that report. (h)

Authorization of Appropriations

There is 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 2011 funds appropriated to the Treasury Department, Departmental Offices account, for the activities of the Commission, to remain available until expended.