II 112th CONGRESS 2d Session S. 2260 IN THE SENATE OF THE UNITED STATES March 29, 2012 Mr. Harkin introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To allow taxpayers the opportunity to specify their choice of Federal budget priorities, and for other purposes.

1.

Short title

This Act may be cited as the Accountability to Choices of Taxpayers In Our Nation’s Budget Priorities.

2.

Taxpayer's choice of budget priorities

(a)

In general

The Secretary of the Treasury (or the Secretary's delegate) shall revise the 1040, 1040A, and 1040EZ forms to contain a display of the latest estimate of Federal expenditures in budget authority for the fiscal year ending prior to the tax year of each such form, and showing the percentage of the Federal budget (determined without regard to offsetting receipts) allocated to the following categories: CategoriesBudget Act function codes Social Security and other retirement650, 601, and 602 Medicare, Medicaid and other health570 and 550 Education and job training 501, 502, 503, and 504 Social Services, income security including nutrition603, 604, 605, and 609 Defense50 Veterans700 International Affairs150 Infrastructure and economic development400, 450, and 370 Energy270 Environment300 Science250 Agriculture350 Justice and general government750 and 800 Net Interest on publicly held debt (b)

Additional background information included in instructions

In a prominent way, the instructions for the 1040, 1040A, and 1040EZ forms shall display appropriate details of the Federal budget showing the rounded funding levels and explanations of each category of the Federal budget within each category included in the table under subsection (a). The definitions of these categories shall be defined by the budget function categories included in such table. (c)

Place for indicating budget priorities

The 1040, 1040A, and 1040EZ forms shall be further revised to provide next to the Federal budget information described in subsection (a) a place for the taxpayer to indicate with respect to each of the 13 categories included in the table under subsection (a) what the taxpayer believes should be that category’s percentage share of the next Federal budget. (d)

Estimate of net interest on publicly held debt

The estimated net interest on publicly held debt included in the table under subsection (a) shall be filled in by the Internal Revenue Service with the estimated level for the following fiscal year. (e)

Role of paid tax preparers

Paid tax return preparers may not fill out a 1040, 1040A, or 1040EZ form without obtaining the taxpayer's Federal budget priorities. Paid tax return preparers shall not charge for filling out the Federal budget priority portion of the form, if there is an added charge for doing so, without the consent of the taxpayer. (f)

Collection and reporting of results

The Secretary of the Treasury (or the Secretary's delegate) shall aggregate the results of the survey under subsection (c) with appropriate demographic detail, including results by State. The Secretary of the Treasury (or the Secretary's delegate) shall provide information regarding such results to Congress not later than July 1 of each year. (g)

Effective date

This section shall take effect with respect to forms to be filled out in the year following the date of the enactment of this Act or in the second year after such date if enactment occurs after July 1.