[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6290 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6290
To provide economic stimulus through advanced refundable tax credits to
all individuals during the COVID-19 crisis, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2020
Ms. Omar (for herself and Ms. Norton) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide economic stimulus through advanced refundable tax credits to
all individuals during the COVID-19 crisis, and for other purposes.
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 ``Reinvestment to Ensure a Livable
Income for Every Family Act of 2020'' or the ``RELIEF Act of 2020''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) COVID-19 has contributed to major disruptions to the
United States society and economy, putting the health and
financial well-being of many Americans at risk;
(2) direct economic stimulus such as advanced refundable
tax credits, referred to as universal emergency rebates in this
Act, can help bring much needed relief to people who need
short-term payments now in order to get by during this crisis;
(3) these direct payments should supplement the immediate,
substantial expansion of existing social insurance programs
including but not limited to unemployment insurance,
supplemental nutrition assistance program, Medicaid, as well as
relief for small businesses and other emergency economic
measures;
(4) as soon as possible and not later than two weeks after
the date of the enactment of this Act, the Secretary of the
Treasury, in consultation with the Commissioner of the Social
Security Administration and the Commissioner of the Internal
Revenue Service, must establish a program for sending direct
emergency rebates, in the form of electronic and paper
payments, on a monthly basis, for every individual residing in
the United States and its territories;
(5) every qualifying adult over the age of 18 would receive
$1,000 and every qualifying dependent child under the age of 18
would receive $500;
(6) only the top 1 percent of income earners would have
post taxes on these benefits in the next filing season and the
rest of Americans would not face any tax penalties or extra
costs, and so would be held harmless for any overpayments or
other delivery errors; and
(7) these advanced refundable tax credits would be
transferred every month until the COVID-19 pandemic is formally
declared and certified as ended from the Secretary of the
Treasury and the Secretary of Health and Human Services.
SEC. 3. ESTABLISHMENT OF 2020 UNIVERSAL EMERGENCY REBATES FOR
INDIVIDUALS.
(a) In General.--Section 6429 of the Internal Revenue Code of 1986
is amended to read as follows:
``SEC. 6429. 2020 UNIVERSAL REBATES FOR INDIVIDUALS.
``(a) In General.--In the case of an eligible taxpayer, there shall
be allowed as a credit against tax imposed by subtitle A for the first
taxable year beginning in 2020 an amount equal to the lesser of--
``(1) net income tax liability, or
``(2) $1,000 ($2,000 in the case of a joint return).
``(b) Special Rules.--
``(1) In general.--In the case of an eligible taxpayer
described in paragraph (2)--
``(A) the amount determined under subsection (a)
shall not be less than $1,000 ($2,000 in the case of a
joint return), and
``(B) the amount determined under subsection (a)
(after application of subparagraph (A)) shall be
increased by the product of $500 multiplied by the
number of qualifying children (within the meaning of
section 24(c)) of the taxpayer.
``(2) Eligible taxpayer described.--A taxpayer is described
in this paragraph if the taxpayer--
``(A) is at least 18 years of age as of December
31, 2020,
``(B) is a resident of the United States, or
``(C) is not a dependent of another taxpayer.
``(c) Treatment of Credit.--The credit allowed by subsection (a)
shall be treated as allowed by subpart C of part IV of subchapter A of
chapter 1.
``(d) Coordination With Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (g).
Any failure to so reduce the credit shall be treated as arising
out of a mathematical or clerical error and assessed according
to section 6213(b)(1). Taxpayers would be held harmless.
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (g) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.
``(e) Advance Refunds and Credits.--
``(1) In general.--Each individual who was an eligible
individual for such individual's first taxable year beginning
in 2019 shall be treated as having made a payment against the
tax imposed by chapter 1 for such first taxable year in an
amount equal to the advance refund amount for such taxable
year.
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if this section (other than subsection (f) and
this subsection) had applied to such taxable year.
``(3) Timing of payments.--The Secretary shall, subject to
the provisions of this title, refund or credit any overpayment
attributable to this section as rapidly as possible on a
monthly basis and a pro rata amount for partial universal
emergency rebate period in the first month of the
implementation of this Act. No refund or credit shall be made
or allowed under this subsection after the COVID-19 outbreak is
over, as declared by the Secretary of the Treasury and the
Secretary of Health and Human Services lifting designations of
national economic turmoil and public health emergency,
respectively.
``(4) Pro rata amounts.--The pro rata amount for each
partial universal emergency rebate period shall be calculated
by multiplying the monthly amount for a full universal
emergency rebate that would be paid to the beneficiary based on
household size for such a period by the percentage calculated
by dividing the number of days of the partial universal
emergency rebate period by the number of days of the month.
``(5) Congressional extension of payments.--The last cycle
of payments will come up in the following quarter after the
COVID-19 pandemic is certified to be over by the Secretary of
the Treasury and the Secretary of Health and Human Services.
Congress will have until such quarter is done to reexamine and
decide if there is still further economic need to extend these
payments.
``(6) No interest.--No interest shall be allowed on any
overpayment attributable to this section.''.
(b) Treatment of Possessions.--
(1) Payment to possessions.--
(A) Mirror code possession.--The Secretary of
Treasury shall make a payment to each possession of the
United States with a mirror code tax system in an
amount equal to the loss to that possession. Such
amount shall be determined by the information provided
by the Government of the respective possession.
(B) Other possessions.--The Secretary of Treasury
shall make a payment to each possession of the United
States which does not have a mirror code tax system in
an amount estimated by the Secretary of the Treasury as
being equal to the aggregate benefits that would have
been provided to residents of such possession if a
mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless
such possession has a plan, which has been approved by
the Secretary of the Treasury, under which such
possession will promptly distribute such payment to the
residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes under section 6428 of the Internal Revenue Code of
1986 (as amended by this section) to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of the amendments
made by this section; or
(B) who is eligible for payment under a plan
described in paragraph (1)(B).
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the North Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code system'' means, with
respect to any possession in the United States, the
income tax system of such possession if the income tax
lability of the residents of such possession under such
system is determined by reference to the income tax
laws of the United States as if such possession were
the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the
payments under this subsection shall be treated in the
same manner as a refund due from the credit allowed
under section 6428 of the Internal Revenue Code of 1986
(as amended by this section).
(c) Refunds Disregarded in the Administration of Federal Programs
and Federally Assisted Programs.--Any credit or refund allowed or made
to any individual by reason of section 6248 of the Internal Revenue
Code of 1986 (as amended by this section) or by reason of subsection
(c) of this section shall not be taken into account as resources for
the enacted month and the following months until funds are formally
halted by decree from the Departments of the Treasury and the Health
and Human Services, for purposes of determining eligibility of such
individual or any other individual for benefits or assistance, under
any Federal program or under any State or local program financed in
whole or in part with Federal funds.
(d) Appropriations To Carry Out Rebates.--
(1) In general.--Immediately upon the enactment of this
Act, the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2020.
(A) Department of the treasury.--
(i) For an additional amount for
``Department of the Treasury--Financial
Management Service--Salaries and Expenses'',
$76,370,000, to remain available until
September 30, 2021.
(ii) For an additional amount for
``Department of the Treasury--Internal Revenue
Service--Operations Support'', $180,185,000, to
remain available until September 30, 2021.
(iii) For an additional amount for
``Department of the Treasury--Internal Revenue
Service--Taxpayer Services'', $65,300,000, to
remain available until September 30, 2021.
(B) Social security administration.--For an
additional amount for ``Social Security
Administration--Limitation on Administrative
Expenses'', $39,000,000, to remain available until
September 30, 2021.
(2) Reports.--No later than 15 days after enactment of this
Act, the Secretary of the Treasury shall submit a plan to the
Committees on Appropriations of the House of Representatives
and the Senate detailing the expected use of the funds provided
by paragraph (1)(A). Beginning 90 days after enactment of this
Act, the Secretary of the Treasury shall submit a quarterly
report to the Committees on Appropriations of the House of
Representatives and the Senate detailing the actual expenditure
of funds provided in paragraph (1)(A) and the expected
expenditure of such funds in the subsequent quarter.
SEC. 4. ADDITIONAL APPLICATION PROCESSES.
The Secretary of the Treasury shall establish an expedited process
by which individuals may provide necessary information to apply for and
streamline access to temporary payments for universal emergency rebates
outside the annual tax return process utilizing--
(1) information from the beneficiary's most recent tax
return if the beneficiary has filed previously and such return
is for 2018 or 2019; and
(2) any additional or alternative information submission
deemed necessary by the Secretary of the Treasury to facilitate
application and prompt delivery of the universal emergency
rebates.
SEC. 5. TREATMENT OF UNIVERSAL EMERGENCY REBATES FOR INCOME TAX
PURPOSES.
Notwithstanding any other provision of law, no amount received as a
universal emergency rebate shall be treated as income for the purpose
of calculating Federal, State, or local tax liability.
SEC. 6. POST-TAXES ON HIGH-INCOME EARNERS.
(a) In General.--There is hereby imposed a tax on 2020 Universal
Emergency Rebates for top income earners for tax year 2020 equal to 100
percent of the applicable amount.
(1) Applicable amount.--The term ``applicable amount''
shall be lesser of--
(A) the amount paid to a taxpayer under section 3;
or
(B) 5 percent of the amount by which the taxpayer's
adjusted gross income exceeds the threshold amount.
(2) Threshold amount.--The term ``threshold amount'' shall
be--
(A) $500,000 in the case of a taxpayer making a
joint return under section 6103 or a surviving spouse
(as defined in section 2(a)); or
(B) $250,000 in the case of a married taxpayer (as
defined in section 7703) filing a separate return \1/2\
the dollar amount under (a).
(b) Tax Mechanism.--The Secretary of the Treasury, in consultation
with the Commissioner of the Internal Revenue Service, shall establish
a system to record, collect, and notify top 1-percent income earners of
taxes needing to be paid on their emergency rebates.
SEC. 7. REPORTS REGARDING LONG-TERM ECONOMIC RESILIENCY TOOLS.
Not later than 365 days after the date of enactment of this Act,
and annually thereafter, the Director of the Congressional Budget
Office, in consultation with the Secretary of Treasury and Chair of the
Federal Reserve, shall submit to Congress a report on how the United
States Government could establish and implement alternative fiscal
stimulus and economic stabilization policies, such as guaranteed
income, to improve readiness for future extreme downturn caused by
depressions, pandemics, and climate change catastrophes.
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