HR 1193 IH

To provide for full voting representation in the Congress for the citizens of the District of Columbia, to amend the Internal Revenue Code of 1986 to provide that individuals who are residents of the District of Columbia shall be exempt from Federal income taxation until such full voting representation takes effect, and for other purposes.

March 22, 2001

Ms. NORTON introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To provide for full voting representation in the Congress for the citizens of the District of Columbia, to amend the Internal Revenue Code of 1986 to provide that individuals who are residents of the District of Columbia shall be exempt from Federal income taxation until such full voting representation takes effect, 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 `No Taxation Without Representation Act of 2001'.

SEC. 2. FINDINGS.

Congress finds that--

(1) The residents of the District of Columbia are the only Americans who pay federal income taxes are denied voting representation in the House and the Senate.

(2) The principle of one person, one vote requires that residents who have met every element of American citizenship should have every benefit of American citizenship, including voting representation in the House and the Senate.

(3) The residents of the District of Columbia are twice denied equal representation because they do not have voting representation as other tax-paying Americans do and they are required to pay federal income taxes unlike the Americans who live in the territories.

(4) Despite the denial of voting representation, Americans in the nation's capital are second per capita in income taxes paid to the federal government.

(5) Unequal voting representation in our representative democracy is inconsistent with the founding principles of the nation and the strongly held principles of American people today.

SEC. 3. REPRESENTATION IN CONGRESS FOR DISTRICT OF COLUMBIA.

Notwithstanding any other provision of law, the community of American citizens who are residents of the District constituting the seat of government of the United States shall have full voting representation in the Congress.

SEC. 4. EXEMPTION FROM TAX FOR INDIVIDUALS WHO ARE RESIDENTS OF THE DISTRICT OF COLUMBIA.

(a) IN GENERAL- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 138 the following new section:

`SEC. 138A. RESIDENTS OF THE DISTRICT OF COLUMBIA.

`(a) EXEMPTION FOR RESIDENTS DURING YEARS WITHOUT FULL VOTING REPRESENTATION IN CONGRESS- This section shall apply with respect to any taxable year during which residents of the District of Columbia are not represented in the House of Representatives and Senate by individuals who are elected by the voters of the District and who have the same voting rights in the House of Representatives and Senate as Members who represent States.

`(b) RESIDENTS FOR ENTIRE TAXABLE YEAR- An individual who is a bona fide resident of the District of Columbia during the entire taxable year shall be exempt from taxation under this chapter for such taxable year.

`(c) TAXABLE YEAR OF CHANGE OF RESIDENCE FROM DISTRICT OF COLUMBIA-

`(1) IN GENERAL- In the case of an individual who has been a bona fide resident of the District of Columbia for a period of at least 2 years before the date on which such individual changes his residence from the District of Columbia, income which is attributable to that part of such period of District of Columbia residence before such date shall not be included in gross income and shall be exempt from taxation under this chapter.

`(2) DEDUCTIONS, ETC. ALLOCABLE TO EXCLUDED AMOUNTS NOT ALLOWABLE- An individual shall not be allowed--

`(A) as a deduction from gross income any deductions (other than the deduction under section 151, relating to personal exemptions), or

`(B) any credit,

properly allocable or chargeable against amounts excluded from gross income under this subsection.

`(d) DETERMINATION OF RESIDENCY-

`(1) IN GENERAL- For purposes of this section, the determination of whether an individual is a bona fide resident of the District of Columbia shall be made under regulations prescribed by the Secretary.

`(2) INDIVIDUALS REGISTERED TO VOTE IN OTHER JURISDICTIONS- No individual may be treated as a bona fide resident of the District of Columbia for purposes of this section with respect to a taxable year if at any time during the year the individual is registered to vote in any other jurisdiction.'.

(b) NO WAGE WITHHOLDING- Paragraph (8) of section 3401(a) of such Code is amended by adding at the end the following new subparagraph:

`(E) for services for an employer performed by an employee if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of the District of Columbia unless section 138A is not in effect throughout such calendar year; or'.

(c) CLERICAL AMENDMENT- The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 138 the following new item:

`Sec. 138A. Residents of the District of Columbia.'

(d) EFFECTIVE DATE-

(1) IN GENERAL- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2) WITHHOLDING- The amendment made by subsection (b) shall apply to remuneration paid after the date of the enactment of this Act.

END