To amend the Internal Revenue Code of 1986 to provide that only after-tax contributions may be made to the Presidential Election Campaign Fund and that taxpayers may designate contributions for a particular national political party, and for other purposes.

February 7, 2002

Mr. WATTS of Oklahoma introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on House Administration, 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 amend the Internal Revenue Code of 1986 to provide that only after-tax contributions may be made to the Presidential Election Campaign Fund and that taxpayers may designate contributions for a particular national political party, 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 `Election Fund Free Choice and Savings Act of 2002'.

SEC. 2. CONTRIBUTIONS TO PRESIDENTIAL ELECTION CAMPAIGN FUND.

(a) IN GENERAL- Part VIII of subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to designation of income tax payments to Presidential Election Campaign Fund) is amended to read as follows:

`PART VIII--CONTRIBUTIONS TO PRESIDENTIAL ELECTION CAMPAIGN FUND

`Sec. 6096. Contributions by individuals.

`SEC. 6096. CONTRIBUTIONS BY INDIVIDUALS.

`(a) IN GENERAL- Every individual may designate for the taxable year--

`(1) that $3 ($6 in the case of a joint return) of the amounts described in subsection (b) be paid over to the Presidential Election Campaign Fund in accordance with the provisions of section 9006(a), and

`(2) that any whole dollar amount of the amount so paid over shall be paid by such Fund to any major party or minor party (as such terms are defined in section 9002) specified by such individual.

`(b) AMOUNTS WHICH MAY BE DESIGNATED- The amounts described in this subsection are--

`(1) any overpayment of the tax imposed by chapter 1 for the taxable year, and

`(2) any cash contribution which the taxpayer includes with the taxpayer's return of such tax for the taxable year.

`(c) MANNER AND TIME OF DESIGNATION- A designation under subsection (a) may be made only at the time of filing the return of the tax imposed by chapter 1 for the taxable year. Such designation shall be made in such manner as the Secretary prescribes by regulations except that such designation shall be made either on the first page of the return or on the page bearing the taxpayer's signature.

`(d) OVERPAYMENTS TREATED AS REFUNDED- For purposes of this title, any portion of an overpayment of tax designated under subsection (a) shall be treated as being refunded to the taxpayer as of the last date prescribed for filing the return of tax imposed by chapter 1 (determined without regard to extensions) or, if later, the date the return is filed.'

(b) CONFORMING AMENDMENTS-

(1) PAYMENTS TO PARTIES- Section 9006 of such Code is amended by adding at the end the following new subsection:

`(d) PAYMENT OF DESIGNATED AMOUNTS TO PARTIES- In addition to any other accounts maintained in the Fund, the Secretary shall maintain in the Fund a separate account for the national committee of each major party and minor party for the receipt of amounts designated by individuals under section 6096(a)(2), and shall deposit in each such account amounts equal to the amounts so designated.'.

(2) OTHER CONFORMING AMENDMENTS- (A) The first sentence of section 9006(b) of such Code is amended by inserting after `fund' the following: `(drawing from amounts designated by individuals under section 6096(a)(1))'.

(B) The third sentence of section 9008(a) of such Code is amended by striking `section 6096' and inserting `section 6096(a)(1)'.

(C) The second sentence of section 9037(a) of such Code is amended by striking `account,' and inserting the following: `account (drawing from amounts designated by individuals under section 6096(a)(1)),'.

(c) CLERICAL AMENDMENT- The item relating to part VIII in the table of parts for subchapter A of chapter 61 of such Code is amended to read as follows:

`Part VIII. Contributions to Presidential Election Campaign Fund.'

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

END