[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1552 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 1552
To amend the Internal Revenue Code of 1986 to allow individuals to
designate that up to 10 percent of their income tax liability be used
to reduce the national debt, and to require spending reductions equal
to the amounts so designated.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 13, 2017
Mr. Flake introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals to
designate that up to 10 percent of their income tax liability be used
to reduce the national debt, and to require spending reductions equal
to the amounts so designated.
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 Buy-Down Act''.
SEC. 2. DESIGNATION OF AMOUNTS FOR REDUCTION OF PUBLIC DEBT.
(a) In General.--Subchapter A of chapter 61 of the Internal Revenue
Code of 1986 (relating to returns and records) is amended by adding at
the end the following new part:
``PART IX--DESIGNATION FOR REDUCTION OF PUBLIC DEBT
``Sec. 6097. Designation.
``SEC. 6097. DESIGNATION.
``(a) In General.--Every individual with adjusted income tax
liability for any taxable year may designate that a portion of such
liability (not to exceed 10 percent thereof) shall be used to reduce
the public debt.
``(b) Manner and Time of Designation.--A designation under
subsection (a) may be made with respect to any taxable year only at the
time of filing the return of tax imposed by chapter 1 for the taxable
year. The designation shall be made on the first page of the return or
on the page bearing the taxpayer's signature.
``(c) Adjusted Income Tax Liability.--For purposes of this section,
the adjusted income tax liability of an individual for any taxable year
is the income tax liability of the individual for the taxable year
determined under section 6096(b), reduced by any amount designated
under section 6096(a).''.
(b) Clerical Amendment.--The table of parts for such subchapter A
is amended by adding at the end the following new item:
``Part IX. Designation for Reduction of Public Debt''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 3. PUBLIC DEBT REDUCTION TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 (relating to trust fund code) is amended by adding at the
end the following section:
``SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Public Debt
Reduction Trust Fund', consisting of any amount appropriated or
credited to the Trust Fund as provided in this section or section
9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Public Debt Reduction Trust Fund amounts equivalent to the amounts
designated under section 6097 (relating to designation for public debt
reduction).
``(c) Expenditures.--Amounts in the Public Debt Reduction Trust
Fund shall be used by the Secretary for purposes of paying at maturity,
or to redeem or buy before maturity, any obligation of the Federal
Government included in the public debt (other than an obligation held
by the Federal Old-Age and Survivors Insurance Trust Fund, or the
Department of Defense Military Retirement Fund). Any obligation which
is paid, redeemed, or bought with amounts from the Public Debt
Reduction Trust Fund shall be canceled and retired and may not be
reissued.''.
(b) Clerical Amendment.--The table of sections for such subchapter
is amended by adding at the end the following new item:
``Sec. 9512. Public Debt Reduction Trust Fund.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received after the date of the enactment of this Act.
SEC. 4. TAXPAYER-GENERATED SEQUESTRATION OF FEDERAL SPENDING TO REDUCE
THE PUBLIC DEBT.
(a) Sequestration To Reduce the Public Debt.--Part C of the
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by
inserting after section 253 the following new section:
``SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC DEBT.
``(a) Sequestration.--Within 15 days after Congress adjourns to end
a session, and on the same day as sequestration (if any) under sections
251, 252, and 253, and under section 5(b) of the Statutory Pay-As-You-
Go Act of 2010, but after any sequestration required by those sections,
there shall be a sequestration equivalent to the estimated aggregate
amount designated under section 6097 of the Internal Revenue Code of
1986 for the last taxable year ending 1 year before the beginning of
that session of Congress, as estimated by the Department of the
Treasury on October 1 and as modified by the total of--
``(1) any amounts by which net discretionary spending is
reduced by an Act of Congress to be below the discretionary
spending limits that is enacted after the date of enactment of
this section and relate to the fiscal year subject to the
sequestration (or, in the absence of such limits, any net
deficit change from the baseline amount calculated under
section 257); and
``(2) the net deficit change that has resulted from all
direct spending legislation enacted after the date of enactment
of this section that relate to the fiscal year subject to the
sequestration, as estimated by the Office of Management and
Budget.
If the reduction in spending under paragraphs (1) and (2) for a fiscal
year is greater than the estimated aggregate amount designated under
section 6097 of the Internal Revenue Code of 1986 for that fiscal year,
then there shall be no sequestration under this section.
``(b) Applicability.--
``(1) In general.--Notwithstanding sections 255 and 256,
and except as provided by paragraph (2), each account of the
United States shall be reduced by a dollar amount calculated by
multiplying the level of budgetary resources in that account at
that time by the uniform percentage necessary to carry out
subsection (a). All obligational authority reduced under this
section shall be done in a manner that makes such reductions
permanent.
``(2) Exempt accounts.--No order issued under this section
may--
``(A) reduce benefits payable to the old-age and
survivors insurance program established under title II
of the Social Security Act;
``(B) reduce retired or retainer pay payable to a
member or former member of the uniformed services; or
``(C) reduce payments for net interest (all of
major functional category 900).''.
(b) Reports.--Section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(1) in subsection (a), by adding at the end of the table
the following new item:
``October 1....................
Department of the Treasury
report to Congress
estimating amount of
income tax designated
pursuant to section
6097 of the Internal
Revenue Code of
1986.'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``, and
sequestration to reduce the public debt,'' after
``sequestration'';
(B) by redesignating paragraph (5) as paragraph
(6); and
(C) by inserting after paragraph (4) the following:
``(5) Reports on sequestration to reduce the public debt.--
The preview reports shall set forth for the budget year
estimates for each of the following:
``(A) The aggregate amount designated under section
6097 of the Internal Revenue Code of 1986 for the last
taxable year ending before the budget year.
``(B) The amount of reductions required under
section 253A and the deficit remaining after those
reductions have been made.
``(C) The sequestration percentage necessary to
achieve the required reduction in accounts under
section 253A(b).''; and
(3) in subsection (f)--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(B) by inserting after paragraph (3) the following:
``(4) Reports on sequestration to reduce the public debt.--
The final reports shall contain all of the information
contained in the public debt taxation designation report
required on October 1.''.
(c) Conforming Amendment.--The table of contents in section 250(a)
of the Balanced Budget and Emergency Deficit Control Act of 1985 is
amended by inserting after the item relating to section 253 the
following:
``Sec. 253A. Sequestration to reduce the public debt.''.
(d) Sunset.--The amendments made by this section shall cease to
have force or effect after the first fiscal year during which there is
no public debt.
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