[Congressional Record Volume 143, Number 44 (Tuesday, April 15, 1997)]
[Senate]
[Pages S3214-S3215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GREGG:
  S. 583. A bill to change the date on which individual Federal income 
tax returns must be filed to the Nation's Tax Freedom Day, the day on 
which the country's citizens no longer work to pay taxes, and for other 
purposes; to the Committee on Finance.


               TAX FILING ON TAX FREEDOM DAY ACT OF 1997

  Mr. GREGG. Mr. President, this past weekend we had a weekend of 
firsts. Tiger Woods became the youngest PGA player to ever win the 
Masters and in doing so broke the all-time scoring record of 270 and 
established the largest margin of victory--12 shots--in the 
tournament's 61-year history.
  On April 14, 1997, the Tax Foundation announced another first, Tax 
Freedom Day this year will be on May 9.
  What is Tax Freedom Day? Tax Freedom Day is the day when the average 
American stops working for the Government and starts working for 
themselves. This year's record date for Tax Freedom Day of May 9 is 2 
days after last year's record of May 7 and up significantly since the 
Clinton administration took office in 1993.
  This year the average American will have to work a total of 128 days 
to pay his or her tax bill. That equates to 2 hours 49 minutes of each 
working day laboring to pay taxes. That's hard time any way you slice 
it.
  Over the years, April 15 has metamorphosized from being a trip to the 
dentist's office to being a major root canal without the novocaine.
  I rise today to introduce legislation that will change the date on 
which individuals file their Federal income tax returns from April 15 
to May 9, Tax Freedom Day.
  While this legislation does little to bring about a change in the 
amount of money paid by the average American wage earner, I believe 
that issue would be helped greatly with the enactment of a balanced 
budget with tax relief. It does ensure that your taxes won't be due 
until you free yourself from crushing Federal taxes.
  I ask unanimous consent that a copy of the bill be placed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 583

       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 ``Tax Filing On Tax Freedom 
     Day Act of 1997''.

     SEC. 2. TAX FILING ON TAX FREEDOM DAY.

       (a) In General.--Each year, in time to be included in the 
     instruction and information booklets that accompany the 
     year's individual income tax returns, the Secretary of the 
     Treasury (in this Act referred to as the ``Secretary'') shall 
     determine the year's Tax Freedom Day pursuant to subsection 
     (d).
       (b) Due Date for Taxes.--Notwithstanding any other 
     provision of law, Federal individual income tax returns for 
     each year shall be due on the date of the Tax Freedom Day in 
     the subsequent year (rather than April 15th).
       (c) Information Provided.--The Secretary shall include in 
     the instruction and information booklets a prominent section 
     that provides the following information with respect to the 
     Tax Freedom Day:
       (1) An explanation of Tax Freedom Day and what it 
     signifies.
       (2) A statement that Congress provided for Federal 
     individual income tax returns to be due on Tax Freedom Day to 
     emphasize how long the average citizen works to pay 
     government taxes.
       (3) During leap years, a note that the year's Tax Freedom 
     Day appears one calendar day earlier than normal.
       (4) A chart showing how the Tax Freedom Day's date has 
     changed over time.
       (5) Information on the State and Federal components of the 
     total tax burden, and how the Tax Freedom Day would differ on 
     a State-by-State basis.
       (d) Determination of Tax Freedom Day.--Each year, the 
     Secretary shall determine the Tax Freedom Day as follows:
       (1) Tax foundation.--By contacting and receiving the date 
     from the Tax Foundation (which has been determining and 
     publishing a Tax Freedom Day since 1973), in time to meet the 
     informational requirements of subsection (c), as long as the 
     Tax Foundation maintains its--
       (A) status as a non-profit, non-partisan research and 
     public education organization;
       (B) consistent method of analysis with respect to 
     determining Tax Freedom Day (unless a change results in a 
     demonstrably much more accurate determination); and

[[Page S3215]]

       (C) trademark on Tax Freedom Day.
       (2) Requirements not met.--If the Tax Foundation--
       (A) fails to maintain any of the requirements described in 
     paragraph (1), or
       (B) does not provide such information to the Secretary in a 
     timely manner after the Secretary's request for the 
     information,

     then the Secretary shall determine the year's Tax Freedom Day 
     in accordance with paragraph (3).
       (3) Determination by the secretary.--If either subparagraph 
     (A) or (B) of paragraph (2) are met, then the Secretary shall 
     determine the year's Tax Freedom Day--
       (A) by assuming that income is earned evenly throughout the 
     year and that individuals initially devote all of their 
     earnings to paying incomes taxes;
       (B) by calculating an effective tax rate for the nation, by 
     dividing the per capita income tax burden (including Federal, 
     State and local taxes) by per capita income (using the net 
     national product, a component of the national income product 
     accounts, as compiled annually by the Bureau of Economic 
     Analysis of the Department of Commerce);
       (C) by multiplying the effective tax rate determined in 
     subparagraph (B) by the number of days in the year; and
       (D) by ensuring that a consistent methodology is utilized 
     from year-to-year, and altering the existing methodology only 
     if the new methodology is demonstrably much more accurate.

     The resultant total shall signify the number of days the 
     average citizen devotes to paying taxes, and the 
     corresponding calendar day shall be the Tax Freedom Day.

     SEC. 3. EFFECTIVE DATE AND SECRETARIAL SUBMISSION.

       (a) Effective Date.--This Act shall take effect for taxable 
     years beginning after December 31, 1997.
       (b) Secretarial Submission.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary shall 
     submit to the appropriate committees of the Congress a 
     legislative proposal providing for such technical and 
     conforming amendments in the law as are required by the 
     provisions of this Act.
                                 ______