[Congressional Record Volume 147, Number 40 (Friday, March 23, 2001)]
[Senate]
[Pages S2824-S2825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LIEBERMAN (for himself and Mr. Feingold):
  S. 603. A bill to provide for full voting representation in the 
Congress for the citizens of the District of Columbia to amend the 
Internal Revenue Code of 1986 to provide that individuals who are 
residents of the District of Columbia shall be exempt from Federal 
income taxation until such full voting representation takes effect, and 
for other purposes; to the Committee on Finance.
  Mr. LIEBERMAN. Mr. President, I rise today to join with my colleague 
Senator Russ Feingold and with my longtime friend Congresswoman Eleanor 
Holmes Norton in the House of Representatives, in sending the message 
that, as the United States Supreme Court has said, ``No right is more 
precious in a free country than that of having a voice in the election 
of those who make the laws under which, as good citizens, we must 
live.'' Here we are, in the year 2001--225 years after the birth of our 
nation--and the residents of the District of Columbia, despite paying 
their full freight of federal taxes, are still deprived of this 
fundamental right. The bill we introduce today, the ``No Taxation 
Without Representation Act of 2001,'' drawing on the famous cry of the 
Boston Tea Party, is a reminder that full representation is a building 
block of the covenant of our democracy, a birthright of every American 
citizen.
  The voting problems in the 2000 Presidential election make the 
symbolism of this bill even more powerful. Not since the civil rights 
struggle of the early 1960's have we been so keenly aware of the 
importance of a vote. All taxpaying citizens of the United States, 
except the residents of Washington, D.C., can vote for representatives 
to advocate for and protect the interests of their constituents in both 
the House and Senate. As American citizens, we do not regard this 
opportunity as a privilege; we regard it as a right. Many Americans are 
not aware and, I believe, would be shocked to know that the residents 
of the District of Columbia have no such right. Although they regularly 
elect ``shadow'' Senators and a ``shadow'' Representative, these people 
are not recognized as members of Congress. The sole voice in Congress 
for D.C. is Delegate Eleanor Holmes Norton in the House of 
Representatives.
  Now I have known Congresswoman Norton for many years, and I know her 
to be able and persistent. The residents of Washington, D.C. are lucky 
to have such a strong and talented advocate on their side. But as a 
delegate, she has the right to vote only in committee; she does not 
have the right to vote on the congressional floor. So unlike every 
other American, Washingtonians have no congressional representatives to 
call who can vote for or against pending legislation that may become 
the law of the land, their land.
  Ever since the American Revolution, the power to tax and the right to 
vote have been inextricably linked. D.C. residents pay federal taxes, 
but have no vote in Congress. I am introducing this bill today in order 
to condemn this unfair situation. If enacted, this bill would exempt 
D.C. residents from paying federal income tax so long as they are not 
fully represented on Capitol Hill. There is a rationale for such an 
exemption from tax. Residents of United States territories such as 
Puerto Rico, Guam, and the United States Virgin Islands which, like 
D.C., have delegate representation in Congress are not required to pay 
any federal income tax. But let me be clear. My goal in sponsoring this 
legislation is not to provide a windfall to the people of Washington, 
D.C. Allowing the residents of D.C. to live tax-free will not solve 
this problem. This bill is a matter of principle, not tax policy. And 
the principle is the right to full enfranchisement.

  As our nation's capital, Washington, D.C. belongs to each and every 
American. We should all take pride in this beautiful city and show its 
citizens the respect they deserve. That is why I have long supported 
legislation providing much-needed financial and political empowerment 
for D.C. I was an original cosponsor of the D.C. Economic Recovery Act 
of 1997, which would have offered tax incentives for people to live and 
invest in here in D.C. We succeeded in getting two provisions of that 
bill enacted, a tax credit for first-time home-buyers and elimination 
of capital gains tax for economic development investments in D.C. I was 
also an original cosponsor of legislation to grant D.C. statehood both 
times it was introduced. And it is because I still believe that the 
people of Washington, D.C. deserve full participation in our democracy 
that I am sponsoring the No Taxation Without Representation Act of 2001 
today.
  My hope is that by introducing this bill, we can bring national 
attention to the injustice that the residents of Washington, D.C. have 
for too long endured. I hope it will help rally the necessary support 
here in Congress to grant D.C. full congressional voting rights. All 
American citizens deserve the right to elect representatives to speak 
and to vote on their behalf in Congress. It is time that the American 
citizens living within the borders of Washington, D.C. are given their 
due. I urge my colleagues to join me in supporting this legislation, 
and ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 603

       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 ``No Taxation Without 
     Representation Act of 2001''.

     SEC. 2. FINDINGS.

       Congress finds as follows:
       (1) The residents of the District of Columbia are the only 
     Americans who pay Federal income taxes but are denied voting 
     representation in the House of Representatives and the 
     Senate.
       (2) The principle of one person, one vote requires that 
     residents who have met every element of American citizenship 
     should have every benefit of American citizenship, including 
     voting representation in the House and the Senate.
       (3) The residents of the District of Columbia are twice 
     denied equal representation, because they do not have voting 
     representation as other taxpaying Americans do and are 
     nevertheless required to pay Federal income taxes unlike the 
     Americans who live in the territories.
       (4) Despite the denial of voting representation, Americans 
     in the Nation's capital are second among the residents of all 
     States in per capita income taxes paid to the Federal 
     Government.
       (5) Unequal voting representation in our representative 
     democracy is inconsistent with the founding principles of the 
     Nation and the strongly held principles of the American 
     people today.

     SEC. 3. REPRESENTATION IN CONGRESS FOR DISTRICT OF COLUMBIA.

       Notwithstanding any other provision of law, the community 
     of American citizens

[[Page S2825]]

     who are residents of the District constituting the seat of 
     government of the United States shall have full voting 
     representation in the Congress.

     SEC. 4. EXEMPTION FROM TAX FOR INDIVIDUALS WHO ARE RESIDENTS 
                   OF THE DISTRICT OF COLUMBIA.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by 
     inserting after section 138 the following new section:

     ``SEC. 138A. RESIDENTS OF THE DISTRICT OF COLUMBIA.

       ``(a) Exemption for Residents During Years Without Full 
     Voting Representation in Congress.--This section shall apply 
     with respect to any taxable year during which residents of 
     the District of Columbia are not represented in the House of 
     Representatives and Senate by individuals who are elected by 
     the voters of the District and who have the same voting 
     rights in the House of Representatives and Senate as Members 
     who represent States.
       ``(b) Residents for Entire Taxable Year.--An individual who 
     is a bona fide resident of the District of Columbia during 
     the entire taxable year shall be exempt from taxation under 
     this chapter for such taxable year.
       ``(c) Taxable Year of Change of Residence From District of 
     Columbia.--
       ``(1) In general.--In the case of an individual who has 
     been a bona fide resident of the District of Columbia for a 
     period of at least 2 years before the date on which such 
     individual changes his residence from the District of 
     Columbia, income which is attributable to that part of such 
     period of District of Columbia residence before such date 
     shall not be included in gross income and shall be exempt 
     from taxation under this chapter.
       ``(2) Deductions, etc. allocable to excluded amounts not 
     allowable.--An individual shall not be allowed--
       ``(A) as a deduction from gross income any deductions 
     (other than the deduction under section 151, relating to 
     personal exemptions), or
       ``(B) any credit,
     properly allocable or chargeable against amounts excluded 
     from gross income under this subsection.
       ``(d) Determination of Residency.--
       ``(1) In general.--For purposes of this section, the 
     determination of whether an individual is a bona fide 
     resident of the District of Columbia shall be made under 
     regulations prescribed by the Secretary.
       ``(2) Individuals registered to vote in other 
     jurisdictions.--No individual may be treated as a bona fide 
     resident of the District of Columbia for purposes of this 
     section with respect to a taxable year if at any time during 
     the year the individual is registered to vote in any other 
     jurisdiction.''.
       (b) No Wage Withholding.--Paragraph (8) of section 3401(a) 
     of such Code is amended by adding at the end the following 
     new subparagraph:
       ``(E) for services for an employer performed by an employee 
     if it is reasonable to believe that during the entire 
     calendar year the employee will be a bona fide resident of 
     the District of Columbia unless section 138A is not in effect 
     throughout such calendar year; or''.
       (c) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     inserting after the item relating to section 138 the 
     following new item:

``Sec. 138A. Residents of the District of Columbia.''

       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after the date of the 
     enactment of this Act.
       (2) Withholding.--The amendment made by subsection (b) 
     shall apply to remuneration paid after the date of the 
     enactment of this Act.
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