Tax Cuts and Spending Reform Act of 2001

IN THE UNITED STATES CONGRESS

March 14th, 2001 A BILL

To preserve the budget surplus and provide relief to Americans that need it:

Be it enacted by the Senate and the House of Representatives in the United States of America Assembled. Section 1: Short Title


 * 1) This bill is to be referred to as the “Tax Cuts and Spending Reform Act of 2001”

Section 2: Taxation Reform


 * 1) Grants power to an independent commission of legal and economic experts under the supervision of the Department of the Treasury to search for and implement solutions that close all existing loopholes in the tax code.
 * 2) The Congressional Budget Office (CBO) estimates that this action could raise billions of dollars in revenue that is currently lost through various loopholes.
 * 3) Establishes separate tax brackets for small businesses and corporations
 * 4) Companies or businesses with no more than 500 employees shall qualify under the small businesses category.
 * 5) The new small business tax rate shall be at a rate that is equivalent to 10% less than the corporate tax rate prior to the implementation of this bill.
 * 6) Income taxes for Americans in all brackets shall be decreased by 5%.
 * 7) Creates a "Renewable Energy Credit" worth $500 that shall be available to any business or household that supplies or uses alternative energy.
 * 8) For the purpose of this bill, alternative energy shall be limited to solar, hydraulic, geothermal, and wind power.
 * 9) Creates a "College Assistance Credit" worth $1000 per child that shall be available to a family that earns less than $75,000 and has at least one child enrolled in college.
 * 10) Doubles the Earned Income Tax Credit (EITC) and the Child Tax Credit.

Section 3: Domestic Programs


 * 1) Recipients of the Supplemental Nutrition Assistance Program (SNAP) may not be able to use money from food stamps to purchase anything other than edible items.
 * 2) Food stamp recipients who violate the above may face a fine no greater than $500 or be taken off the program for no more than six months.
 * 3) Establishes a Social Security lockbox by prohibiting the federal government from borrowing Social Security funds to pay for any other program or expense.
 * 4) Permits the auditing of the welfare, Social Security, and Medicare/Medicaid programs to ensure the responsible and effective expenditure of funds.
 * 5) Allows the Pentagon to be audited by watchdog agencies just as existing safety net programs and all executive departments are.
 * 6) The Budget for the Department of Defense shall be decreased by 10% over the next fiscal year, the places in which the budget is decreased is up to the President and Secretary of Defense.

Section 4: Implementation

Once signed, all changes proposed in this bill shall take effect for the next fiscal year.