text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Date Certain Tax Code Replacement 
  Act''.
  
  SEC. 2. PURPOSE.
  
      The purpose of this Act is to set a date certain for replacing the 
  Internal Revenue Code of 1986 with a simple and fair alternative.
  
  SEC. 3. TERMINATION OF INTERNAL REVENUE CODE OF 1986.
  
      (a) In General.--No tax shall be imposed by the Internal Revenue 
  Code of 1986--
              (1) for any taxable year beginning after December 31, 2005; 
          and
              (2) in the case of any tax not imposed on the basis of a 
          taxable year, on any taxable event or for any period after 
          December 31, 2005.
      (b) Exception.--Subsection (a) shall not apply to taxes imposed 
  by--
              (1) chapter 2 of such Code (relating to tax on self-
          employment income);
              (2) chapter 21 of such Code (relating to Federal Insurance 
          Contributions Act); and
              (3) chapter 22 of such Code (relating to Railroad 
          Retirement Tax Act).
  
  SEC. 4. NATIONAL COMMISSION ON TAX REFORM AND
                SIMPLIFICATION.
  
      (a) Findings.--The Congress finds the following:
              (1) The Internal Revenue Code of 1986 is overly complex, 
          imposes significant burdens on individuals and businesses and 
          the economy, is extremely difficult for the Internal Revenue 
          Service to administer, and is in need of fundamental reform and 
          simplification.
              (2) Many of the problems encountered by taxpayers in 
          dealing with the Internal Revenue Service could be eliminated 
          or alleviated by fundamental reform and simplification.
              (3) The Federal Government's present fiscal outlook for 
          continuing and sustained budget surpluses provides a unique 
          opportunity for the Congress to consider measures for 
          fundamental reform and simplification of the tax laws.
              (4) Recent efforts to simplify or reform the tax laws have 
          not been successful due in part to the difficulty of developing 
          broad-based, nonpartisan support for proposals to make such 
          changes.
              (5) Many of the problems with the Internal Revenue Service 
          stem from the overly complex tax code the agency is asked to 
          administer.
      (b) Establishment.--
              (1) In general.--To carry out the purposes of this section, 
          there is established within the legislative branch a National 
          Commission on Tax Reform and Simplification (in this section 
          referred to as the ``Commission'').
              (2) Composition.--The Commission shall be composed of 15 
          members, as follows:
                      (A) Three members appointed by the President, two 
                  from the executive branch of the Government and one 
                  from private life.
                      (B) Four members appointed by the majority leader 
                  of the Senate, one from Members of the Senate and three 
                  from private life.
                      (C) Two members appointed by the minority leader of 
                  the Senate, one from Members of the Senate and one from 
                  private life.
                      (D) Four members appointed by the Speaker of the 
                  House of Representatives, one from Members of the House 
                  and three from private life.
                      (E) Two members appointed by the minority leader of 
                  the House of Representatives, one from Members of the 
                  House and one from private life.
              (3) Chair.--The Commission shall elect a Chair (or two Co-
          Chairs) from among its members.
              (4) Meetings, quorums, vacancies.--After its initial 
          meeting, the Commission shall meet upon the call of the Chair 
  (Co-Chairs, if elected) or a majority of its members. Nine members of 
  the Commission shall constitute a quorum. Any vacancy in the Commission 
  shall not affect its powers, but shall be filled in the same manner in 
  which the original appointment was made. Any meeting of the Commission 
  or any subcommittee thereof may be held in executive session to the 
  extent that the Chair (Co-Chairs, if elected) or a majority of the 
  members of the Commission or subcommittee determine appropriate.
              (5) Continuation of membership.--If--
                      (A) any individual who appointed a member to the 
                  Commission by virtue of holding a position described in 
                  paragraph (2) ceases to hold such position before the 
                  report of the Commission is submitted under subsection 
                  (g); or
                      (B) a member was appointed to the Commission as a 
                  Member of Congress and the member ceases to be a Member 
                  of Congress, or was appointed to the Commission because 
                  the member was not an officer or employee of any 
                  government and later becomes an officer or employee of 
                  a government,
          that member may continue as a member for not longer than the 
          30-day period beginning on the date that such individual ceases 
          to hold such position or such member ceases to be a Member of 
          Congress or becomes such an officer or employee, as the case 
          may be.
              (6) Appointment; initial meeting.--
                      (A) Appointment.--It is the sense of the Congress 
                  that members of the Commission should be appointed not 
                  more than 60 days after the date of the enactment of 
                  this Act.
                      (B) Initial meeting.--If, after 60 days from the 
                  date of the enactment of this Act, eight or more 
                  members of the Commission have been appointed, members 
                  who have been appointed may meet and select the Chair 
                  (or Co-Chairs) who thereafter shall have the authority 
                  to begin the operations of the Commission, including 
                  the hiring of staff.
      (c) Functions of the Commission.--
              (1) In general.--The functions of the Commission shall be--
                      (A) to conduct, for a period of not to exceed 18 
                  months from the date of its first meeting, the review 
                  described in paragraph (2); and
                      (B) to submit to the Congress a report of the 
                  results of such review, including recommendations for 
                  fundamental reform and simplification of the Internal 
                  Revenue Code of 1986, as described in subsection (g).
              (2) Review.--The Commission shall review--
                      (A) the present structure and provisions of the 
                  Internal Revenue Code of 1986, especially with respect 
                  to--
                              (i) its impact on the economy (including 
                          the impact on savings, capital formation and 
                          capital investment);
                              (ii) its impact on families and the 
                          workforce (including issues relating to 
                          distribution of tax burden);
                              (iii) the compliance cost to taxpayers; and
                              (iv) the ability of the Internal Revenue 
                          Service to administer such provisions;
                      (B) whether tax systems imposed under the laws of 
                  other countries could provide more efficient and fair 
                  methods of funding the revenue requirements of the 
                  government;
                      (C) whether the income tax should be replaced with 
                  a tax imposed in a different manner or on a different 
                  base; and
                      (D) whether the Internal Revenue Code of 1986 can 
                  be simplified, absent wholesale restructuring or 
                  replacement thereof.
      (d) Powers of the Commission.--
              (1) In general.--The Commission or, on the authorization of 
          the Commission, any subcommittee or member thereof, may, for 
          the purpose of carrying out the provisions of this section, 
          hold such hearings and sit and act at such times and places, 
          take such testimony, receive such evidence, and administer such 
          oaths, as the Commission or such designated subcommittee or 
          designated member may deem advisable.
              (2) Contracting.--The Commission may, to such extent and in 
          such amounts as are provided in appropriation Acts, enter into 
          contracts to enable the Commission to discharge its duties 
          under this section.
              (3) Assistance from federal agencies and offices.--
                      (A) Information.--The Commission is authorized to 
                  secure directly from any executive department, bureau, 
                  agency, board, commission, office, independent 
                  establishment, or instrumentality of the Government, as 
                  well as from any committee or other office of the 
                  legislative branch, such information, suggestions, 
                  estimates, and statistics as it requires for the 
                  purposes of its review and report. Each such 
                  department, bureau, agency, board, commission, office, 
                  establishment, instrumentality, or committee shall, to 
                  the extent not prohibited by law, furnish such 
                  information, suggestions, estimates, and statistics 
                  directly to the Commission, upon request made by the 
                  Chair (Co-Chairs, if elected).
                      (B) Treasury department.--The Secretary of the 
                  Treasury is authorized on a nonreimbursable basis to 
                  provide the Commission with administrative services, 
                  funds, facilities, staff, and other support services 
                  for the performance of the Commission's functions.
                      (C) General services administration.--The 
                  Administrator of General Services shall provide to the 
                  Commission on a nonreimbursable basis such 
                  administrative support services as the Commission may 
                  request.
                      (D) Joint committee on taxation.--The staff of the 
                  Joint Committee on Taxation is authorized on a 
                  nonreimbursable basis to provide the Commission with 
                  such legal, economic, or policy analysis, including 
                  revenue estimates, as the Commission may request.
                      (E) Other assistance.--In addition to the 
                  assistance set forth in subparagraphs (A), (B), (C), 
                  and (D), departments and agencies of the United States 
                  are authorized to provide to the Commission such 
                  services, funds, facilities, staff, and other support 
                  services as they may deem advisable and as may be 
                  authorized by law.
              (4) Postal services.--The Commission may use the United 
          States mails in the same manner and under the same conditions 
          as departments and agencies of the United States.
              (5) Gifts.--The Commission may accept, use, and dispose of 
          gifts or donations of services or property in carrying out its 
          duties under this section.
      (e) Staff of the Commission.--
              (1) In general.--The Chair (Co-Chairs, if elected), in 
          accordance with rules agreed upon by the Commission, may 
          appoint and fix the compensation of a staff director and such 
          other personnel as may be necessary to enable the Commission to 
          carry out its functions without regard to the provisions of 
          title 5, United States Code, governing appointments in the 
          competitive service, and without regard to the provisions of 
          chapter 51 and subchapter III or chapter 53 of such title 
          relating to classification and General Schedule pay rates, 
          except that no rate of pay fixed under this subsection may 
          exceed the equivalent of that payable to a person occupying a 
          position at level V of the Executive Schedule under section 
          5316 of title 5, United States Code. Any Federal Government 
          employee may be detailed to the Commission without 
          reimbursement from the Commission, and such detailee shall 
          retain the rights, status, and privileges of his or her regular 
          employment without interruption.
              (2) Consultant services.--The Commission is authorized to 
          procure the services of experts and consultants in accordance 
          with section 3109 of title 5, United States Code, but at rates 
          not to exceed the daily rate paid a person occupying a position 
          at level IV of the Executive Schedule under section 5315 of 
          title 5, United States Code.
      (f) Compensation and Travel Expenses.--
              (1) Compensation.--
                      (A) In general.--Except as provided in subparagraph 
                  (B), each member of the Commission may be compensated 
                  at not to exceed the daily equivalent of the annual 
                  rate of basic pay in effect for a position at level IV 
                  of the Executive Schedule under section 5315 of title 
                  5, United States Code, for each day during which that 
                  member is engaged in the actual performance of the 
                  duties of the Commission.
                      (B) Exception.--Members of the Commission who are 
                  officers or employees of the United States or Members 
                  of Congress shall receive no additional pay on account 
                  of their service on the Commission.
              (2) Travel expenses.--While away from their homes or 
          regular places of business in the performance of services for 
          the Commission, members of the Commission shall be allowed 
          travel expenses, including per diem in lieu of subsistence, in 
          the same manner as persons employed intermittently in the 
          Government service are allowed expenses under section 5703(b) 
          of title 5, United States Code.
      (g) Report of the Commission; Termination.--
              (1) Report.--Not later than 18 months after the date of the 
          first meeting of the Commission, the Commission shall submit a 
          report to the Committee on Ways and Means of the House of 
          Representatives and the Committee on Finance of the Senate. The 
          report of the Commission shall describe the results of its 
          review (as described in subsection (c)(2)), shall make such 
          recommendations for fundamental reform and simplification of 
          the Internal Revenue Code of 1986 as the Commission considers 
          appropriate, and shall describe the expected impact of such 
          recommendations on the economy and progressivity and general 
          administrability of the tax laws.
              (2) Termination.--
                      (A) In general.--The Commission, and all the 
                  authorities of this section, shall terminate on the 
                  date which is 90 days after the date on which the 
                  report is required to be submitted under paragraph (1).
                      (B) Concluding activities.--The Commission may use 
                  the 90-day period referred to in subparagraph (A) for 
                  the purposes of concluding its activities, including 
                  providing testimony to committees of Congress 
                  concerning its report and disseminating that report.
      (h) Authorization of Appropriations.--There is authorized to be 
  appropriated such sums as may be necessary for the activities of the 
  Commission. Until such time as funds are specifically appropriated for 
  such activities, $2,000,000 shall be available from fiscal year 2002 
  funds appropriated to the Treasury Department, ``Departmental Offices'' 
  account, for the activities of the Commission, to remain available 
  until expended.
  
  SEC. 5. TIMING OF IMPLEMENTATION.
  
      In order to ensure an easy transition and effective implementation, 
  the Congress hereby declares that any new Federal tax system shall be 
  approved by Congress in its final form no later than July 4, 2005. If a 
  new Federal tax system is not so approved by July 4, 2005, then 
  Congress shall be required to vote to reauthorize the Internal Revenue 
  Code of 1986.
target: Date Certain Tax Code Replacement Act - Prohibits the imposition of any tax by the Internal Revenue Code: (1) for any taxable year beginning after December 31, 2005; and (2) in the case of any tax not imposed on the basis of a taxable year, on any taxable event or for any period after December 31, 2005. Excepts the: (1) tax on self-employment income (chapter 2 of the Code); (2) Federal Insurance Contributions Act (chapter 21 of the Code); and (3) Railroad Retirement Tax Act (chapter 22 of the Code).Establishes the National Commission on Tax Reform and Simplification to review: (1) the present structure and provisions of the Code; (2) whether the tax systems of other countries could provide more efficient and fair methods of funding government revenue requirements; (3) whether the income tax should be replaced with a tax imposed in a different manner or on a different base; and (4) whether the Code can be simplified, absent wholesale restructuring or replacement. Requires a Commission report to Congress on review results, with recommendations for Code reform and simplification. Terminates the Commission 90 days after such report.Authorizes appropriations (with interim funding).Declares that any new Federal tax system should be approved by Congress in its final form before July 4, 2005, and, if not, Congress should be required to vote to reauthorize the Code.
feat_title: To terminate the Internal Revenue Code of 1986.