[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4958 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4958
To amend the Internal Revenue Code of 1986 to tax bona fide residents
of the District of Columbia in the same manner as bona fide residents
of possessions of the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 31, 2019
Mr. Gohmert introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to tax bona fide residents
of the District of Columbia in the same manner as bona fide residents
of possessions of the United States.
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''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The phrase ``no taxation without representation'' was a
rallying cry of many American colonists during the period of
British rule in the 1760s and early 1770s. The slogan gained
widespread notoriety after the passage of the Sugar Act on
April 5, 1764.
(2) American colonists increasingly resented having taxes
levied upon them without having any legislators they elected
who were voting in Parliament in London. The idea that there
should be no taxation without representation dated back even
further. Benjamin Franklin stated, ``it is suppos'd an
undoubted Right of Englishmen not to be taxed but by their own
Consent given thro' their Representatives.''.
(3) This issue became even more defined in 1765 with the
passage of the Stamp Act which was the first true attempt to
levy a direct tax on the American colonies. Ultimately the tax
was repealed, but the idea of no taxation without
representation persisted.
(4) Article I, section 2, clause 1 of the United States
Constitution, states, ``The House of Representatives shall be
composed of Members chosen every second Year by the People of
the SEVERAL STATES, and the Electors in each State shall have
the Qualifications requisite for Electors of the most numerous
Branch of the State Legislature.''.
(5) The Organic Act of 1801 placed Washington, DC, under
the exclusive jurisdiction of the United States Congress and
people in the District were no longer considered residents of
Virginia or Maryland.
(6) Many in Washington, DC, were immediately opposed to the
idea of being taxed without congressional representation and
over the years several congressional leaders introduced
constitutional amendments to give the District of Columbia
voting representation, though none were successful.
(7) In 1898, Puerto Rico was acquired by the United States
and currently has a Resident Commissioner with limited voting
rights. Section 933 of the Internal Revenue Code of 1986
exempts bona fide citizens who are residents of Puerto Rico for
the entire taxable year from Federal taxes on income earned in
Puerto Rico.
(8) On March 31, 1917, the United States took possession of
the Virgin Islands and in 1927, the territory's residents were
granted citizenship. Under section 932 of the Internal Revenue
Code of 1986, individuals who are bona fide residents of the
United States Virgin Islands during the entire taxable year,
and who fully pay all income tax liabilities to the United
States Virgin Islands, are not subject to Federal income taxes
on their income.
(9) Guam was established as a territory of the United
States after the passage of the Guam Organic Act of 1950. Under
the provisions of section 935 of the Internal Revenue Code of
1986, residents of Guam are required to file tax returns with
Guam, but not with the United States Federal Government and
therefore the residents do not have to pay United States
Federal income taxes.
(10) The Commonwealth of the Northern Mariana Islands was
established in 1975 after residents decided not to pursue
independence, but instead they opted to enter into territory
negotiations. The tax treatment of the Northern Mariana Islands
is similar to the structure of Guam in that bona fide residents
are not required to pay Federal income taxes.
(11) American Samoa, which is technically considered
``unorganized'' because no Organic Acts have been passed by
Congress, is governed by section 931 of the Internal Revenue
Code of 1986. Under this section, bona fide year-round
residents are exempt from Federal taxes on income they earn in
Samoa, Guam, and Northern Mariana Islands, but are subject to
Federal taxes on income earned elsewhere.
(12) In keeping with the early history and democratic
traditions of the United States, the principles established in
the Constitution, and in conformance with the other territories
of the United States which have delegates but no
Representative, the residents of the District of Columbia
should be exempt from paying United States Federal income
taxes.
SEC. 3. EXCLUSION FROM GROSS INCOME FOR INCOME FROM SOURCES WITHIN THE
DISTRICT OF COLUMBIA.
(a) In General.--Subpart D of part III of subchapter N of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 938. INCOME FROM SOURCES WITHIN THE DISTRICT OF COLUMBIA.
``(a) General Rule.--In the case of an individual who is a bona
fide resident of the District of Columbia during the entire taxable
year, gross income shall not include--
``(1) income derived from sources within the District of
Columbia, and
``(2) income effectively connected with the conduct of a
trade or business by such individual within the District of
Columbia.
``(b) Deductions, etc. Allocable to Excluded Amounts Not
Allowable.--An individual shall not be allowed--
``(1) as a deduction from gross income any deductions
(other than the deduction under section 151, relating to
personal exemptions), or
``(2) any credit, properly allocable or chargeable against
amounts excluded from gross income under this section.
``(c) Bona Fide Resident and Other Applicable Rules.--For purposes
of this section, rules similar to the rules of section 876, 937,
957(c), 3401(a)(8)(D), and 7654 shall apply.''.
(b) Clerical Amendment.--The table of sections for subpart D of
part III of subchapter N of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 938. Income from sources within the District of Columbia.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
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