[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1125 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1125

 To establish a fee on transactions which would eliminate the national 
            debt and replace the income tax on individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2011

  Mr. Fattah introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committees on the 
  Budget, Rules, and Appropriations, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish a fee on transactions which would eliminate the national 
            debt and replace the income tax on individuals.

    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 ``Debt Free America Act''.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) The current tax structure creates economic distortions 
        that limit growth and job creation.
            (2) The estimated cost of compliance to taxpayers is five 
        billion hours and approximately $200 billion.
            (3) Restructuring the tax code will promote economic 
        prosperity.
            (4) Replacing existing Federal taxes with a fee on 
        transactions eliminates systemic inefficiency that plagues the 
        current tax code.
            (5) The United States, from its beginning in 1790 to the 
        present, has been free of a national debt for only two years, 
        1834 and 1835.
            (6) The national debt has grown from $75.5 million in 1790 
        to $9.4 trillion as of December 2010.
            (7) Expressed as a percentage of gross domestic product 
        (GDP), the national debt reached a high of 108.6 percent of GDP 
        in 1946.
            (8) After 1946, the national debt as a percentage of GDP 
        declined, reaching a low of 32.5 percent in 1981.
            (9) The large budget deficits of the 1980s and 1990s 
        reversed this trend and pushed the percentage to another high 
        of 49.5 percent in 1993.
            (10) The Federal budget surpluses from fiscal year 1998 to 
        fiscal year 2001 were used to retire a portion of the publicly 
        held national debt.
            (11) Between fiscal year 1997 and fiscal year 2001, the 
        publicly held portion of the national debt declined by more 
        than $400 billion.
            (12) Since fiscal year 2002, a return to budget deficits 
        has caused the debt to grow again.
    (b) Purposes.--The purpose of section 3 of this Act is to establish 
a fee on most transactions. Such fee--
            (1) is different than a sales tax in that a sales tax is 
        charged only on sales to the final consumer and the transaction 
        fee would apply to intermediate users as well as end users,
            (2) is different than a value added tax (VAT), commonly 
        used in European and other countries, in that a VAT is imposed 
        only on a portion of a transaction's value (roughly the 
        difference between an item's selling price and its cost) and 
        the transaction fee would apply to the entire amount of the 
        transaction, and
            (3) is intended to raise sufficient revenue to--
                    (A) eliminate the national debt, which was $6.3 
                trillion in January 2009, during a period of 10 years 
                and to phase out the income tax on individuals, 
                including interest payments on the national debt, which 
                will total $1 trillion annually by 2020 under current 
                fiscal policy, and will account for 17 percent of all 
                Federal spending, and
                    (B) provide incentives for private sector 
                investment in capital goods such as manufacturing 
                plants and facilities, clean energy generation, and 
                infrastructure development, creating the economic 
                conditions for increased capital stocks and greater 
                economic output, leading to job growth and economic 
                expansion.

SEC. 3. IMPLEMENTATION OF A TRANSACTION FEE.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by inserting after chapter 36 the following new chapter:

                     ``CHAPTER 37--TRANSACTION FEE

``Sec. 4501. Imposition of transaction fee.

``SEC. 4501. IMPOSITION OF TRANSACTION FEE.

    ``(a) In General.--There is hereby imposed on every specified 
transaction a fee in an amount equal to 1 percent of the amount of such 
transaction.
    ``(b) Specified Transaction.--For purposes of this chapter--
            ``(1) In general.--The term `specified transaction' means 
        any transaction that uses a payment instrument, including any 
        check, cash, credit card, transfer of stock, bonds, or other 
        financial instrument.
            ``(2) Exceptions.--The term `specified transaction' shall 
        not include--
                    ``(A) any transfer between accounts of the 
                taxpayer, and
                    ``(B) any deposit into a personal account of an 
                individual.
            ``(3) Transaction.--The term `transaction' includes retail 
        and wholesale sales, purchases of intermediate goods, and 
        financial and intangible transactions.
    ``(c) Liability for Fee.--Persons become liable for the fee at the 
moment the person exercises control over a piece of property or 
service, regardless of the payment method.
    ``(d) Collection.--The fees will be collected by the seller or 
financial institution servicing the transaction and shall be paid over 
to the Secretary. In the case of a person who fails to collect and pay 
over the fee as required under this subsection, such person shall 
become liable for the fee not so collected and paid over.
    ``(e) Potential Exclusions.--Subsection (a) shall not apply to 
transactions involving stock (and any options or derivatives with 
respect to stock) until--
            ``(1) such time as the United States enters into an 
        international agreement that regulates domestic and 
        international stock exchanges, or
            ``(2) the Secretary issues recommendations regarding the 
        application of the fee as it applies to stock.
    ``(f) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance which 
require reporting of such information as the Secretary determines 
appropriate to prevent under reporting of the amounts on which a fee is 
imposed by this section.''.
    (b) Clerical Amendment.--The table of chapters for the Internal 
Revenue Code of 1986 is amended by inserting after the item relating to 
section 36 the following new item:

                    ``Chapter 37. Transaction Fee''.

    (c) Effective Date.--The amendments made by this section shall 
apply to transactions in calendar years beginning after the date of the 
enactment of this Act.

SEC. 4. INCOME TAX CREDIT DURING PERIOD THAT TRANSACTION FEE AND 
              INDIVIDUAL INCOME TAX ARE IN EFFECT.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. CREDIT DURING PERIOD OF TRANSACTION FEE AND INDIVIDUAL 
              INCOME TAX.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to 1 percent of the taxpayer's adjusted 
gross income.
    ``(b) Phaseout Based on Adjusted Gross Income.--The credit allowed 
under subsection (a) for any taxable year shall be reduced (but not 
below zero) by an amount which bears the same ratio to the amount of 
such credit (determined without regard to this subsection) as--
            ``(1) the excess (if any) of the taxpayer's adjusted gross 
        income for such taxable year over $100,000 ($250,000 in the 
        case of a joint return), bears to
            ``(2) $10,000 ($20,000 in the case of a joint return).''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Credit during period of transaction fee and individual 
                            income tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning during calendar years beginning after 
the date of the enactment of this Act.

SEC. 5. ESTABLISHMENT OF TASK FORCE.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(2 U.S.C. 631 et seq.) is amended by adding at the end the following 
new section:

      ``establishment of task force for responsible fiscal action

    ``Sec. 316.  (a) Definitions.--In this section:
            ``(1) Task force.--The term `Task Force' means the 
        Bipartisan Task Force for Responsible Fiscal Action established 
        under subsection (b)(1).
            ``(2) Task force bill.--The term `Task Force bill' means a 
        bill consisting of the proposed legislative language of the 
        Task Force recommended under subsection (b)(3)(B) and 
        introduced under subsection (e)(1).
            ``(3) Fiscal imbalance.--The term `fiscal imbalance' means 
        the gap between the projected revenues and expenditures of the 
        Federal Government.
    ``(b) Establishment of Task Force.--
            ``(1) Establishment.--There is established in the 
        legislative branch a task force to be known as the `Bipartisan 
        Task Force for Responsible Fiscal Action'.
            ``(2) Purposes.--
                    ``(A) Review.--The Task Force shall review the 
                fiscal imbalance of the Federal Government, including--
                            ``(i) analyses of projected Federal 
                        expenditures;
                            ``(ii) analyses of projected Federal 
                        revenues; and
                            ``(iii) analyses of the current and long-
                        term actuarial financial condition of the 
                        Federal Government.
                    ``(B) Identify factors.--The Task Force shall 
                identify factors that affect the long-term fiscal 
                imbalance of the Federal Government.
                    ``(C) Analyze potential courses of action.--The 
                Task Force shall analyze potential courses of action to 
                address factors that affect the long-term fiscal 
                imbalance of the Federal Government.
                    ``(D) Provide recommendations and legislative 
                language.--The Task Force shall provide recommendations 
                and legislative language that will significantly 
                improve the long-term fiscal imbalance of the Federal 
                Government, including recommendations addressing--
                            ``(i) Federal expenditures;
                            ``(ii) Federal revenues; and
                            ``(iii) the current and long-term actuarial 
                        financial condition of the Federal Government.
            ``(3) Duties.--
                    ``(A) In general.--The Task Force shall address the 
                Nation's long-term fiscal imbalances, consistent with 
                the purposes described in paragraph (2), and shall 
                submit the report and recommendations required under 
                subparagraph (B).
                    ``(B) Report, recommendations, and legislative 
                language.--
                            ``(i) In general.--Not earlier than 
                        November 1, 2011, and not later than November 
                        18, 2011, the Task Force shall vote on a report 
                        that contains--
                                    ``(I) a detailed statement of the 
                                findings, conclusions, and 
                                recommendations of the Task Force;
                                    ``(II) the assumptions, scenarios, 
                                and alternatives considered in reaching 
                                such findings, conclusions, and 
                                recommendations; and
                                    ``(III) proposed legislative 
                                language to carry out such 
                                recommendations as described in 
                                paragraph (2)(D).
                            ``(ii) Approval of report.--The report of 
                        the Task Force submitted under clause (i) shall 
                        require the approval of not fewer than 14 of 
                        the 18 members of the Task Force.
                            ``(iii) Additional views.--A member of the 
                        Task Force who gives notice of an intention to 
                        file supplemental, minority, or additional 
                        views at the time of final Task Force approval 
                        of the report under clause (ii), shall be 
                        entitled to not less than 3 calendar days in 
                        which to file such views in writing with the 
                        staff director of the Task Force. Such views 
                        shall then be included in the Task Force report 
                        and printed in the same volume, or part 
                        thereof, and their inclusion shall be noted on 
                        the cover of the report. In the absence of 
                        timely notice, the Task Force report may be 
                        printed and transmitted immediately without 
                        such views.
                            ``(iv) Transmission of report.--No later 
                        than November 30, 2011, the Task Force shall 
                        submit the Task Force bill and final report to 
                        the President, the Vice President, the Speaker 
                        of the House, and the majority and minority 
                        leaders of both Houses.
                            ``(v) Report to be made public.--Upon the 
                        approval or disapproval of the Task Force 
                        report pursuant to clause (ii), the Task Force 
                        shall promptly make the full report, and a 
                        record of the vote, available to the public.
            ``(4) Membership.--
                    ``(A) In general.--The Task Force shall be composed 
                of 18 members designated pursuant to subparagraph (B).
                    ``(B) Designation.--Members of the Task Force shall 
                be designated as follows:
                            ``(i) The President shall designate 2 
                        members, one of whom shall be the Secretary of 
                        the Treasury, and the other of whom shall be an 
                        officer of the executive branch.
                            ``(ii) The majority leader of the Senate 
                        shall designate 4 members from among Members of 
                        the Senate.
                            ``(iii) The minority leader of the Senate 
                        shall designate 4 members from among Members of 
                        the Senate.
                            ``(iv) The Speaker of the House of 
                        Representatives shall designate 4 members from 
                        among Members of the House of Representatives.
                            ``(v) The minority leader of the House of 
                        Representatives shall designate 4 members from 
                        among Members of the House of Representatives.
                    ``(C) Co-chairs.--
                            ``(i) In general.--There shall be 2 Co-
                        Chairs of the Task Force. The President, 
                        majority leader of the Senate, and Speaker of 
                        the House shall designate one Co-Chair among 
                        the members of the Task Force. The minority 
                        leader of the Senate and minority leader of the 
                        House shall designate the second Co-Chair among 
                        the members of the Task Force. The Co-Chairs 
                        shall be appointed not later than 14 days after 
                        the date of enactment of this section.
                            ``(ii) Staff director.--The Co-Chairs, 
                        acting jointly, shall hire the staff director 
                        of the Task Force.
                    ``(D) Date.--Members of the Task Force shall be 
                designated by not later than 14 days after the date of 
                enactment of this section.
                    ``(E) Period of designation.--Members shall be 
                designated for the life of the Task Force. Any vacancy 
                in the Task Force shall not affect its powers, but 
                shall be filled not later than 14 days after the date 
                on which the vacancy occurs in the same manner as the 
                original designation.
                    ``(F) Compensation.--Members of the Task Force 
                shall serve without any additional compensation for 
                their work on the Task Force. However, members may be 
                allowed travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code, while away from their 
                homes or regular places of business in performance of 
                services for the Task Force.
            ``(5) Administration.--
                    ``(A) Authority to establish rules and 
                regulations.--The Co-Chairs, in consultation with the 
                other members of the Task Force, may establish rules 
                and regulations for the conduct of Task Force business, 
                if such rules and regulations are not inconsistent with 
                this section or other applicable law.
                    ``(B) Quorum.--Fourteen members of the Task Force 
                shall constitute a quorum for purposes of voting, 
                meeting, and holding hearings.
                    ``(C) Voting.--
                            ``(i) Proxy voting.--No proxy voting shall 
                        be allowed on behalf of the members of the Task 
                        Force.
                            ``(ii) Report, recommendations and 
                        legislative language.--
                                    ``(I) Dates.--The Task Force may 
                                not vote on any version of the report, 
                                recommendations, or legislative 
                                language before the timing provided for 
                                in paragraph (3)(B)(i).
                                    ``(II) Congressional budget office 
                                and joint committee on taxation 
                                estimates.--The Congressional Budget 
                                Office and Joint Committee on Taxation 
                                shall provide estimates of the Task 
                                Force report and recommendations (as 
                                described in subsection (b)(2)(D)) in 
                                accordance with section 308(a) and 
                                201(f) of the Congressional Budget Act 
                                of 1974. The Task Force may not vote on 
                                any version of the report, 
                                recommendations, or legislative 
                                language unless a final estimate is 
                                available for consideration by all the 
                                members at least 72 hours prior to the 
                                vote.
                    ``(D) Hearings.--The Task Force may, for the 
                purpose of carrying out this section, hold such 
                hearings, sit and act at such times and places, take 
                such testimony, receive such evidence, and administer 
                such oaths the Task Force considers advisable.
    ``(c) Expedited Consideration of Task Force Recommendations.--
            ``(1) Introduction.--
                    ``(A) Reconvening.--
                            ``(i) In the house of representatives.--
                        Upon receipt of a report under subsection 
                        (b)(3)(B), the Speaker, if the House would 
                        otherwise be adjourned, shall notify the 
                        Members of the House that, pursuant to this 
                        section, the House shall convene not later than 
                        December 7, 2011.
                            ``(ii) In the senate.--
                                    ``(I) Convening.--Upon receipt of a 
                                report under subsection (b)(3)(B), if 
                                the Senate has adjourned or recessed 
                                for more than 2 days, the majority 
                                leader of the Senate, after 
                                consultation with the minority leader 
                                of the Senate, shall notify the Members 
                                of the Senate that, pursuant to this 
                                section, the Senate shall convene not 
                                later than December 7, 2011.
                                    ``(II) Adjourning.--No concurrent 
                                resolution adjourning the Senate for 
                                more than 3 days shall be in order 
                                until the Senate votes on passage of 
                                the Task Force bill under paragraph 
                                (2)(B)(iv).
                    ``(B) Introduction of task force bill.--The 
                proposed legislative language contained in the report 
                submitted pursuant to subsection (b)(3)(B), upon 
                receipt by the Congress, shall be introduced not later 
                than December 7, 2011, in the Senate and in the House 
                of Representatives by the majority leader of each House 
                of Congress, for himself, the minority leader of each 
                House of Congress, for himself, or any member of the 
                House designated by the majority leader or minority 
                leader. If the Task Force bill is not introduced in 
                accordance with the preceding sentence in either House 
                of Congress, then any Member of that House may 
                introduce the Task Force bill on any day thereafter. 
                Upon introduction, the Task Force bill shall be 
                referred to the appropriate committees under 
                subparagraph (C).
                    ``(C) Committee consideration.--A Task Force bill 
                introduced in either House of Congress shall be jointly 
                referred to the committee or committees of jurisdiction 
                and the Committee on the Budget of that House, which 
                committees shall report the bill without any revision 
                and with a favorable recommendation, an unfavorable 
                recommendation, or without recommendation, not later 
                than 7 calendar days after the date of introduction of 
                the bill in that House, or the first day thereafter on 
                which that House is in session. If any committee fails 
                to report the bill within that period, that committee 
                shall be automatically discharged from consideration of 
                the bill, and the bill shall be placed on the 
                appropriate calendar.
            ``(2) Expedited procedures.--
                    ``(A) Fast track consideration in house of 
                representatives.--
                            ``(i) Proceeding to consideration.--It 
                        shall be in order, not later than 2 days of 
                        session after the date on which a Task Force 
                        bill is reported or discharged from all 
                        committees to which it was referred, for the 
                        majority leader of the House of Representatives 
                        or the majority leader's designee, to move to 
                        proceed to the consideration of the Task Force 
                        bill. It shall also be in order for any Member 
                        of the House of Representatives to move to 
                        proceed to the consideration of the Task Force 
                        bill at any time after the conclusion of such 
                        2-day period. All points of order against the 
                        motion are waived. Such a motion shall not be 
                        in order after the House has disposed of a 
                        motion to proceed on the Task Force bill. The 
                        previous question shall be considered as 
                        ordered on the motion to its adoption without 
                        intervening motion. The motion shall not be 
                        debatable. A motion to reconsider the vote by 
                        which the motion is disposed of shall not be in 
                        order.
                            ``(ii) Consideration.--The Task Force bill 
                        shall be considered as read. All points of 
                        order against the Task Force bill and against 
                        its consideration are waived. The previous 
                        question shall be considered as ordered on the 
                        Task Force bill to its passage without 
                        intervening motion except 100 hours of debate 
                        equally divided and controlled by the proponent 
                        and an opponent, and any motion to limit 
                        debate. A motion to reconsider the vote on 
                        passage of the Task Force bill shall not be in 
                        order.
                            ``(iii) Appeals.--Appeals from decisions of 
                        the chair relating to the application of the 
                        Rules of the House of Representatives to the 
                        procedure relating to a Task Force bill shall 
                        be decided without debate.
                            ``(iv) Application of house rules.--Except 
                        to the extent specifically provided in 
                        paragraph (2)(A), consideration of a Task Force 
                        bill shall be governed by the Rules of the 
                        House of Representatives. It shall not be in 
                        order in the House of Representatives to 
                        consider any Task Force bill introduced 
                        pursuant to the provisions of this subsection 
                        under a suspension of the rules pursuant to 
                        Clause 1 of House Rule XV, or under a special 
                        rule reported by the House Committee on Rules.
                            ``(v) No amendments.--No amendment to the 
                        Task Force bill shall be in order in the House 
                        of Representatives.
                            ``(vi) Vote on passage.--Immediately 
                        following the conclusion of consideration of 
                        the Task Force bill, the vote on passage of the 
                        Task Force bill shall occur without any 
                        intervening action or motion, requiring an 
                        affirmative vote of three-fifths of the 
                        Members, duly chosen and sworn. If the Task 
                        Force bill is passed, the Clerk of the House of 
                        Representatives shall cause the bill to be 
                        transmitted to the Senate before the close of 
                        the next day of session of the House. The vote 
                        on passage shall occur not later than December 
                        23, 2011.
                            ``(vii) Vote.--The House Committee on Rules 
                        may not report a rule or order that would have 
                        the effect of causing the Task Force bill to be 
                        approved by a vote of less than three-fifths of 
                        the Members, duly chosen and sworn.
                    ``(B) Fast track consideration in senate.--
                            ``(i) In general.--Notwithstanding Rule 
                        XXII of the Standing Rules of the Senate, it is 
                        in order, not later than 2 days of session 
                        after the date on which a Task Force bill is 
                        reported or discharged from all committees to 
                        which it was referred, for the majority leader 
                        of the Senate or the majority leader's designee 
                        to move to proceed to the consideration of the 
                        Task Force bill. It shall also be in order for 
                        any Member of the Senate to move to proceed to 
                        the consideration of the Task Force bill at any 
                        time after the conclusion of such 2-day period. 
                        A motion to proceed is in order even though a 
                        previous motion to the same effect has been 
                        disagreed to. All points of order against the 
                        motion to proceed to the Task Force bill are 
                        waived. The motion to proceed is not debatable. 
                        The motion is not subject to a motion to 
                        postpone. A motion to reconsider the vote by 
                        which the motion is agreed to or disagreed to 
                        shall not be in order. If a motion to proceed 
                        to the consideration of the Task Force bill is 
                        agreed to, the Task Force bill shall remain the 
                        unfinished business until disposed of.
                            ``(ii) Debate.--All points of order against 
                        the Task Force bill and against consideration 
                        of the Task Force bill are waived. 
                        Consideration of the Task Force bill and of all 
                        debatable motions and appeals in connection 
                        therewith shall not exceed a total of 100 
                        hours. Debate shall be divided equally between 
                        the majority and minority leaders or their 
                        designees. A motion further to limit debate on 
                        the Task Force bill is in order, shall require 
                        an affirmative vote of three-fifths of the 
                        Members duly chosen and sworn, and is not 
                        debatable. Any debatable motion or appeal is 
                        debatable for not to exceed 1 hour, to be 
                        divided equally between those favoring and 
                        those opposing the motion or appeal. All time 
                        used for consideration of the Task Force bill, 
                        including time used for quorum calls and 
                        voting, shall be counted against the total 100 
                        hours of consideration.
                            ``(iii) No amendments.--An amendment to the 
                        Task Force bill, or a motion to postpone, or a 
                        motion to proceed to the consideration of other 
                        business, or a motion to recommit the Task 
                        Force bill, is not in order.
                            ``(iv) Vote on passage.--The vote on 
                        passage shall occur immediately following the 
                        conclusion of the debate on a Task Force bill, 
                        and a single quorum call at the conclusion of 
                        the debate if requested. Passage shall require 
                        an affirmative vote of three-fifths of the 
                        Members, duly chosen and sworn. The vote on 
                        passage shall occur not later than December 23, 
                        2011.
                            ``(v) Adjournment.--If, by December 23, 
                        2011, either House has failed to adopt a motion 
                        to proceed to the Task Force bill, paragraph 
                        (1)(A)(ii)(II) shall not apply.
                            ``(vi) Rulings of the chair on procedure.--
                        Appeals from the decisions of the Chair 
                        relating to the application of the rules of the 
                        Senate, as the case may be, to the procedure 
                        relating to a Task Force bill shall be decided 
                        without debate.
                    ``(C) Rules to coordinate action with other 
                house.--
                            ``(i) Referral.--If, before the passage by 
                        1 House of a Task Force bill of that House, 
                        that House receives from the other House a Task 
                        Force bill, then the Task Force bill of the 
                        other House shall not be referred to a 
                        committee and shall immediately be placed on 
                        the calendar.
                            ``(ii) Procedure.--If the Senate receives 
                        the Task Force bill passed by the House of 
                        Representatives before the Senate has voted on 
                        passage of the Task Force bill--
                                    ``(I) the procedure in the Senate 
                                shall be the same as if no Task Force 
                                bill had been received from House of 
                                Representatives; and
                                    ``(II) the vote on passage in the 
                                Senate shall be on the Task Force bill 
                                of the House of Representatives.
                            ``(iii) Treatment of task force bill of 
                        other house.--If 1 House fails to introduce or 
                        consider a Task Force bill under this section, 
                        the Task Force bill of the other House shall be 
                        entitled to expedited floor procedures under 
                        this section.
                            ``(iv) Treatment of companion measures in 
                        the senate.--If following passage of the Task 
                        Force bill in the Senate, the Senate then 
                        receives the Task Force bill from the House of 
                        Representatives, the House-passed Task Force 
                        bill shall not be debatable. The vote on 
                        passage of the Task Force bill in the Senate 
                        shall be considered to be the vote on passage 
                        of the Task Force bill received from the House 
                        of Representatives.
                            ``(v) Vetoes.--If the President vetoes the 
                        Task Force bill, debate on a veto message in 
                        the Senate under this section shall be 1 hour 
                        equally divided between the majority and 
                        minority leaders or their designees.
            ``(3) Suspension.--No motion to suspend the application of 
        this subsection shall be in order in the Senate or in the House 
        of Representatives.''.
    (b) Funding.--From the amounts appropriated or made available and 
remaining unobligated under division A (other than under title X of 
division A) of the American Recovery and Reinvestment Act of 2009 
(Public Law 111-5), there is rescinded pro rata an aggregate amount 
equal to $9,000,000, which amount shall be made available without need 
for further appropriation to the Bipartisan Task Force for Responsible 
Fiscal Action to carry out the purposes of the Bipartisan Task Force 
for Responsible Fiscal Action, and which shall remain available through 
fiscal year 2013. Not later than 14 days after the date of enactment of 
this section, the Director of the Office of Management and Budget shall 
administer the rescission and make available such amount to the 
Bipartisan Task Force for Responsible Fiscal Action.

SEC. 6. REPEAL OF INCOME TAX ON INDIVIDUALS.

    (a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking the following provisions:
            (1) Part I of subchapter A.
            (2) Subpart A of part IV of subchapter A.
            (3) Sections 31, 32, 35, 36, and 36A.
    (b) Repeal of Alternative Minimum Tax for Individuals.--Section 55 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subsection:
    ``(f) Exemption for Noncorporate Taxpayers.--The tentative minimum 
tax for any taxpayer other than a corporation shall be zero.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 7. PRIORITIZATION FOR REPAYMENT OF NATIONAL DEBT.

    To take into account the national security concerns of the United 
States, the Secretary of the Treasury, in consultation with the 
Secretary of State, shall prioritize the repayment of the national debt 
and shall take into account circumstances in which the Secretary of the 
Treasury determines the early repayment of outstanding debt is 
detrimental to the fiscal stability of the United States.

SEC. 8. STUDY AND REPORT.

    (a) Study.--The Secretary of the Treasury, in consultation with the 
Chairman of the Federal Reserve, shall--
            (1) analyze methods to prevent and relieve any distortions 
        among economic sectors created by the implementation of this 
        Act,
            (2) make recommendations regarding the application of the 
        transaction fee established under this Act to barter 
        transactions which do not involve a payment instrument,
            (3) assess the transaction fee established under this Act 
        as a tool of Federal fiscal policy, including an impact 
        analysis on the elimination or retention of existing tax 
        expenditures, incentives, penalties, and credits, including--
                    (A) the earned income credit,
                    (B) the alternative minimum tax,
                    (C) the child tax credit, and
                    (D) the deduction for mortgage interest,
            (4) analyze the extent to which the transaction fee could 
        offset the cost to the Federal Government of increasing 
        discretionary and mandatory spending, particularly expenditures 
        related to education, defense, Social Security, Medicare, and 
        Medicaid,
            (5) make recommendations with respect to the Internal 
        Revenue Service, which--
                    (A) assume the transition and grandfathering of all 
                existing personnel of the Internal Revenue Service,
                    (B) identify the elements of the current Internal 
                Revenue Service needed to administer the transaction 
                fee, and
                    (C) examine the feasibility of modifying the 
                overall mission and jurisdiction of the Internal 
                Revenue Service from one focused on tax law application 
                to one focused on uncovering waste, fraud, and abuse 
                throughout the Federal Government, and
            (6) make determinations and recommendations for methods of 
        phasing out the income tax on individuals before its repeal 
        under section 4 in a manner which is consistent with the 
        purposes described in section 2(b)(3).
    (b) Report.--The Secretary of the Treasury shall, not later than 1 
year after the date of the enactment of this Act, submit to Congress a 
written report containing the results, determinations, and 
recommendations of the Secretary under subsection (a).
                                 <all>