,,ii #aaeth ,,congress #ast ,session ,s4 #aeeb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ac1 #bjag,mr4 ,flake introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow individuals to designate that up to #aj percent of their income tax liability be used to reduce the national debt1 and to require spending reductions equal to the amounts so designated4 #a4 ,short title ,this ,act may be cited as the ,debt ,buy-,down ,act4 #b4 ,designation of amounts for reduction of public debt 7a7 ,in general ,subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf 7relating to returns and records7 is amended by adding at the end the following new part3 ,,ix ,designation for reduction of public debt ,sec4 #fjig4 ,designation4 #fjig4 ,designation 7a7 ,in general ,every individual with adjusted income tax liability for any taxable year may designate that a portion of such liability 7not to exceed #aj percent thereof7 shall be used to reduce the public debt4 7b7 ,manner and time of designation ,a designation under subsection 7a7 may be made with respect to any taxable year only at the time of filing the return of tax imposed by chapter #a for the taxable year4 ,the designation shall be made on the first page of the return or on the page bearing the taxpayer's signature4 7c7 ,adjusted income tax liability ,for purposes of this section1 the adjusted income tax liability of an individual for any taxable year is the income tax liability of the individual for the taxable year determined under section #fjif7;b71 reduced by any amount designated under section #fjif7;a74 4 7b7 ,clerical amendment ,the table of parts for such subchapter ,a is amended by adding at the end the following new item3 ,part ,,ix4 ,designation for reduction of public debt 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4 #c4 ,public debt reduction trust fund 7a7 ,in general ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf 7relating to trust fund code7 is amended by adding at the end the following section3 #ieab4 ,public debt reduction trust fund 7a7 ,creation of trust fund ,there is established in the ,treasury of the ,united ,states a trust fund to be known as the ,public ,debt ,reduction ,trust ,fund1 consisting of any amount appropriated or credited to the ,trust ,fund as provided in this section or section #ifjb7;b74 7b7 ,transfers to trust fund ,there are hereby appropriated to the ,public ,debt ,reduction ,trust ,fund amounts equivalent to the amounts designated under section #fjig 7relating to designation for public debt reduction74 7c7 ,expenditures ,amounts in the ,public ,debt ,reduction ,trust ,fund shall be used by the ,secretary for purposes of paying at maturity1 or to redeem or buy before maturity1 any obligation of the ,federal ,government included in the public debt 7other than an obligation held by the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund1 or the ,department of ,defense ,military ,retirement ,fund74 ,any obligation which is paid1 redeemed1 or bought with amounts from the ,public ,debt ,reduction ,trust ,fund shall be canceled and retired and may not be reissued4 4 7b7 ,clerical amendment ,the table of sections for such subchapter is amended by adding at the end the following new item3 ,sec4 #ieab4 ,public ,debt ,reduction ,trust ,fund4 4 7c7 ,effective date ,the amendments made by this section shall apply to amounts received after the date of the enactment of this ,act4 #d4 ,taxpayer-generated sequestration of ,federal spending ,to reduce the public debt 7a7 ,sequestration ,to reduce the public debt ,part ,c of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is amended by inserting after section #bec the following new section3 #bec;,a4 ,sequestration to reduce the public debt 7a7 ,sequestration ,within #ae days after ,congress adjourns to end a session1 and on the same day as sequestration 7if any7 under sections #bea1 #beb1 and #bec1 and under section #e7;b7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 but after any sequestration required by those sections1 there shall be a sequestration equivalent to the estimated aggregate amount designated under section #fjig of the ,internal ,revenue ,code of #aihf for the last taxable year ending #a year before the beginning of that session of ,congress1 as estimated by the ,department of the ,treasury on ,october #a and as modified by the total of-- 7#a7 any amounts by which net discretionary spending is reduced by an ,act of ,congress to be below the discretionary spending limits that is enacted after the date of enactment of this section and relate to the fiscal year subject to the sequestration 7or1 in the absence of such limits1 any net deficit change from the baseline amount calculated under section #beg72 and 7#b7 the net deficit change that has resulted from all direct spending legislation enacted after the date of enactment of this section that relate to the fiscal year subject to the sequestration1 as estimated by the ,office of ,management and ,budget4 ,if the reduction in spending under paragraphs 7#a7 and 7#b7 for a fiscal year is greater than the estimated aggregate amount designated under section #fjig of the ,internal ,revenue ,code of #aihf for that fiscal year1 then there shall be no sequestration under this section4 7b7 ,applicability 7#a7 ,in general ,notwithstanding sections #bee and #bef1 and except as provided by paragraph 7#b71 each account of the ,united ,states shall be reduced by a dollar amount calculated by multiplying the level of budgetary resources in that account at that time by the uniform percentage necessary to carry out subsection 7a74 ,all obligational authority reduced under this section shall be done in a manner that makes such reductions permanent4 7#b7 ,exempt accounts ,no order issued under this section may-- 7,a7 reduce benefits payable to the old-age and survivors insurance program established under title ,,ii of the ,social ,security ,act2 7,b7 reduce retired or retainer pay payable to a member or former member of the uniformed services2 or 7,c7 reduce payments for net interest 7all of major functional category #ijj74 4 7b7 ,reports ,section #bed of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is amended-- 7#a7 in subsection 7a71 by adding at the end of the table the following new item3 ,october #a;,department of the ,treasury report to ,congress estimating amount of income tax designated pursuant to section #fjig of the ,internal ,revenue ,code of #aihf4 2 7#b7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by inserting 1 and sequestration to reduce the public debt1 after sequestration2 7,b7 by redesignating paragraph 7#e7 as paragraph 7#f72 and 7,c7 by inserting after paragraph 7#d7 the following3 7#e7 ,reports on sequestration to reduce the public debt ,the preview reports shall set forth for the budget year estimates for each of the following3 7,a7 ,the aggregate amount designated under section #fjig of the ,internal ,revenue ,code of #aihf for the last taxable year ending before the budget year4 7,b7 ,the amount of reductions required under section #bec;,a and the deficit remaining after those reductions have been made4 7,c7 ,the sequestration percentage necessary to achieve the required reduction in accounts under section #bec;,a7b74 2 and 7#c7 in subsection 7f7-- 7,a7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#e7 and 7#f71 respectively2 and 7,b7 by inserting after paragraph 7#c7 the following3 7#d7 ,reports on sequestration to reduce the public debt ,the final reports shall contain all of the information contained in the public debt taxation designation report required on ,october #a4 4 7c7 ,conforming amendment ,the table of contents in section #bej7;a7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is amended by inserting after the item relating to section #bec the following3 ,sec4 #bec;,a4 ,sequestration to reduce the public debt4 4 7d7 ,sunset ,the amendments made by this section shall cease to have force or effect after the first fiscal year during which there is no public debt4