text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``National Advisory Commission on Tax 
  Reform and Simplification Act of 2001''.
  
  SEC. 2. PURPOSE.
  
      The purpose of this Act is to establish a commission to study and 
  report back to Congress recommendations on simplifying, reforming, or 
  replacing the Internal Revenue Code of 1986.
  
  SEC. 3. FINDINGS.
  
      The Congress finds the following:
              (1) The Internal Revenue Code of 1986 is overly complex, 
          imposes significant burdens on individuals, 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--especially those 
          arising from misunderstandings of the Code--could be eliminated 
          or alleviated by fundamental reform and simplification.
              (3) The Internal Revenue Service faces continual difficulty 
          in administering an overly lengthy, complex, and confusing tax 
          code.
              (4) Taxpayers and tax experts have repeatedly called for a 
          simplification of the current tax code.
              (5) The complexity of the current code places a significant 
          burden on individual filers, including extensive record 
          keeping, time requirements to prepare returns, gaining an 
          understanding of the exemptions for which they may qualify, and 
          other burdens. This has forced the majority of taxpayers to 
          turn to tax professionals to prepare their tax returns.
              (6) Congress is continually modifying and correcting the 
          Code, leading to annual uncertainty and only adding to the 
          patchwork of complexity and confusion.
              (7) 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.
              (8) 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.
  
  SEC. 4. ESTABLISHMENT OF A NATIONAL COMMISSION ON TAX REFORM AND 
                SIMPLIFICATION.
  
      (a) In General.--To carry out the purposes of this Act, there is 
  established within the legislative branch a National Advisory 
  Commission on Tax Reform and Simplification (in this Act referred to as 
  the ``Commission''), comprised of 15 members. The membership of the 
  Commission shall be as follows:
              (1) 3 members appointed by the President, 2 from the 
          executive branch of the Government and 1 from private life.
              (2) 4 members appointed by the majority leader of the 
          Senate, 1 from Members of the Senate and 3 from private life.
              (3) 2 members appointed by the minority leader of the 
          Senate, 1 from Members of the Senate and 1 from private life.
              (4) 4 members appointed by the Speaker of the House of 
          Representatives, 1 from Members of the House of Representatives 
          and 3 from private life.
              (5) 2 members appointed by the minority leader of the House 
          of Representatives, 1 from Members of the House of 
          Representatives and 1 from private life.
      (b) Sense of Congress.--It is the sense of Congress that the 
  President and congressional leadership should draw from a number of 
  important areas of expertise in composing the Commission, including tax 
  experts familiar with corporate tax issues, international tax issues, 
  small business tax issues, and family and individual tax issues.
      (c) Appointments.--Appointments to the Commission shall be made not 
  later than 45 days after the date of the enactment of this Act.
  
  SEC. 5. RULES OF THE COMMISSION.
  
      (a) Quorum.--Nine members of the Commission shall constitute a 
  quorum for conducting the business of the Commission.
      (b) Initial Meeting.--If, after 60 days from the date of the 
  enactment of this Act, 5 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) Rules.--The Commission may adopt such other rules as it 
  considers appropriate.
      (d) Vacancies.--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.
      (e) Continuation of Membership.--Any individual who appointed a 
  member to the Commission by virtue of holding a position described in 
  section 4 ceases to hold such position before the report of the 
  Commission is submitted, 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.
  
  SEC. 6. DUTIES OF THE COMMISSION.
  
      (a) In General.--The duties of the Commission shall include--
              (1) to conduct, for a period of not to exceed 18 months 
          from the date of its first meeting, the review described in 
          subsection (b); and
              (2) 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 section 10.
      (b) Review and Issuing Proposals.--The Commission shall review and, 
  when applicable, issue proposals on--
              (1) the present structure and provisions of the Internal 
          Revenue Code of 1986, especially with respect to--
                      (A) its impact on the economy (including the impact 
                  on savings, capital formation, capital investment, and 
                  international trade);
                      (B) its impact on families and the workforce 
                  (including issues relating to distribution of tax 
                  burden and impact on small businesses);
                      (C) the predictability of the tax code from year to 
                  year;
                      (D) the compliance cost to taxpayers and 
                  businesses; and
                      (E) the ability of the Internal Revenue Service to 
                  administer such provisions;
              (2) whether tax systems imposed under the laws of other 
          countries could provide more efficient, simple, and fair 
          methods of funding the revenue requirements of the Government;
              (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 Internal Revenue Code of 1986 can be 
          simplified, absent wholesale restructuring or replacement 
          thereof.
  
  SEC. 7. POWERS OF THE COMMISSION.
  
      (a) 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 Act, 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.
      (b) 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 Act.
      (c) Assistance From Federal Agencies and Offices.--
              (1) 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).
              (2) 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.
              (3) 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.
              (4) 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.
              (5) Other assistance.--In addition to the assistance set 
          forth in paragraphs (1), (2), (3), and (4), 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.
              (6) 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.
              (7) Gifts.--The Commission may accept, use, and dispose of 
          gifts or donations of services or property in carrying out its 
          duties under this Act.
  
  SEC. 8. STAFF OF THE COMMISSION.
  
      (a) 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.
      (b) 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.
  
  SEC. 9. COMPENSATION AND TRAVEL EXPENSES.
  
      (a) Compensation.--
              (1) In general.--Except as provided in paragraph (2), 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.
              (2) 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.
      (b) 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.
  
  SEC. 10. REPORT OF THE COMMISSION; TERMINATION.
  
      (a) 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 under section 6(b), 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.
      (b) Termination.--
              (1) In general.--The Commission, and all the authorities of 
          this Act, shall terminate on the date which is 90 days after 
          the date on which the report is required to be submitted under 
          subsection (a).
              (2) Concluding activities.--The Commission may use the 90-
          day period referred to in paragraph (1) for the purposes of 
          concluding its activities, including providing testimony to 
          committees of Congress concerning its report and disseminating 
          that report.
      (c) Authorization of Appropriations.--There are 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 2001 
  funds appropriated to the Department of the Treasury, ``Departmental 
  Offices'' account, for the activities of the Commission, to remain 
  available until expended.
target: National Advisory Commission on Tax Reform and Simplification Act of 2001 - Establishes within the legislative branch a National Advisory Commission on Tax Reform and Simplification which shall review and, when applicable, issue proposals on: (1) the present structure and provisions of the Internal Revenue Code; (2) whether tax systems imposed under the laws of other countries could provide more efficient, simple, and fair methods of funding the revenue requirements of the Government; (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 Internal Revenue Code can be simplified, absent wholesale restructuring or replacement.Authorizes appropriations for the Commission. Terminates the Commission after the submission of a report.
feat_title: To provide for the establishment of a commission to review and make recommendations to Congress on the reform and simplification of the Internal Revenue Code of 1986.