Taxpayer Directed Spending "Taxpayer Allocation Act"

Economy
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The Taxpayer Allocation Act of [Year]

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 “Taxpayer Allocation Act of [Year].”

SECTION 2. TAXPAYER ALLOCATION OF FEDERAL INCOME TAX CONTRIBUTIONS.

(a) Purpose.
This Act authorizes taxpayers to direct the allocation of their federal income tax contributions to specific Federal Departments or Budget entities of their choice as part of their annual federal income tax filings.

(b) Taxpayer Instruction Mechanism.
The Internal Revenue Service (IRS), in coordination with the Department of the Treasury, shall provide a mechanism on federal income tax filings allowing taxpayers to:

  1. Designate the Federal Department or Budget entity to which their income tax contributions shall be allocated; and
  2. Specify the percentage or proportion of their tax payments to be allocated to each selected department or entity.

(c) Scope of Allocation.
Taxpayer allocations shall apply solely to the discretionary budget allocations of the Federal Government and shall not interfere with mandatory funding obligations established by law.

(d) Implementation.
The Secretary of the Treasury, in consultation with the Commissioner of the Internal Revenue Service, shall:

  1. Develop and implement systems and procedures to facilitate taxpayer designations;
  2. Ensure the confidentiality and security of taxpayer preferences; and
  3. Provide annual reports to Congress on the impact of taxpayer-directed allocations on federal budgeting.

(e) Effective Date.
This Act shall apply to taxable years beginning after December 31, [Year].

SECTION 3. LIMITATIONS AND OVERSIGHT.
(a) Congressional Oversight.
The Comptroller General of the United States shall conduct an annual review of the program to assess its effectiveness and provide recommendations for improvement.

(b) Limitations.
Nothing in this Act shall be construed to:

  1. Impede the Federal Government’s ability to meet existing legal or financial obligations;
  2. Alter the total amount of federal income tax liabilities owed by any taxpayer; or
  3. Grant taxpayers authority to reduce or eliminate contributions to any mandatory budgetary obligation.

SECTION 4. SEVERABILITY.
If any provision of this Act or the application thereof is held invalid, the remainder of this Act shall not be affected thereby.

SECTION 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be necessary to carry out this Act.

Approved [Month, Day, Year].