To amend the Internal Revenue Code of 1986 to provide a refund of up to $300 to individuals for payroll taxes paid in 2000.

October 3, 2001

Ms. SOLIS (for herself, Mr. BORSKI, Mr. KUCINICH, Ms. LEE, Mr. CLEMENT, Mr. CLAY, Mr. FILNER, Mr. OWENS, Ms. WATERS, Mr. NADLER, Ms. WATSON of California, Mr. OLVER, Mr. BISHOP, Mr. BROWN of Ohio, Mrs. CHRISTENSEN, Mr. WYNN, Mr. DAVIS of Illinois, Mr. SANDERS, and Mr. UDALL of Colorado) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide a refund of up to $300 to individuals for payroll taxes paid in 2000.

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 `Working Families Tax Rebate Act of 2001'.

SEC. 2. REFUND OF PAYROLL TAXES.

(a) IN GENERAL- Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to abatements, credits, and refunds) is amended by adding at the end the following new section:

`SEC. 6429. REFUND OF PAYROLL TAXES.

`(a) IN GENERAL- Each individual shall be treated as having made a payment against the tax imposed by chapter 1 for such individual's first taxable year beginning in 2000 in an amount equal to the payroll tax refund amount for such taxable year.

`(b) PAYROLL TAX REFUND AMOUNT-

`(1) IN GENERAL- For purposes of subsection (a), the payroll tax refund amount is the lesser of--

`(A) $300, or

`(B) the amount of the individual's social security taxes (as defined in section 24(d)(2)) for such year,

reduced by the advance refund amount (if any) received by the individual under section 6428(e).

`(2) JOINT RETURNS- For purposes of paragraph (1), in the case of an advance refund amount made under section 6428(e) with respect to a joint return, half of such refund amount shall be treated as having been made to each individual filing such return.

`(c) TIMING OF PAYMENTS- In the case of any overpayment attributable to this section, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before December 31, 2001.

`(d) NO INTEREST- No interest shall be allowed on any overpayment attributable to this section.'.

(b) CLERICAL AMENDMENT- The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item:

END