I 116TH CONGRESS 2D SESSION H. R. 8601 To assess the State by State impact of Federal taxation and spending. IN THE HOUSE OF REPRESENTATIVES OCTOBER 16, 2020 Mr. FOSTER (for himself, Mr. TAYLOR, Mrs. BUSTOS, Ms. SCHAKOWSKY, Mr. ZELDIN, Mr. GOTTHEIMER, Mr. SMITH of New Jersey, and Mr. ALLRED) introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To assess the State by State impact of Federal taxation and spending. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Payer State Trans- 4 parency Act of 2020’’. 5 SEC. 2. CALCULATION OF FEDERAL TAX BURDENS AND 6 OUTLAYS. 7 (a) STATE BY STATE CALCULATION OF FEDERAL 8 TAX BURDENS.— 9 VerDate Sep 11 2014 01:48 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8601.IH H8601 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8601 IH (1) IN GENERAL.—The Secretary of Commerce, 1 acting through the Director of the Bureau of Eco- 2 nomic Analysis, shall calculate the Federal tax bur- 3 den of each State for each calendar year. 4 (2) CALCULATION OF FEDERAL TAX BUR- 5 DEN.—For purposes of calculating the Federal tax 6 burden of each State under paragraph (1), the Sec- 7 retary shall— 8 (A) treat Federal taxes paid by an indi- 9 vidual as a burden on the State in which such 10 individual resides; and 11 (B) treat Federal taxes paid by a legal 12 business entity as a burden on each State in 13 which economic activity of such entity is per- 14 formed in the same proportion that the eco- 15 nomic activity of such entity in such State 16 bears to the economic activity of such entity in 17 all the States. 18 (b) STATE BY STATE CALCULATION OF FEDERAL 19 OUTLAYS.— 20 (1) IN GENERAL.—The Director of the Office of 21 Management and Budget, in coordination with the 22 Council of Economic Advisers and the Secretary of 23 the Treasury, shall calculate the total amount of 24 VerDate Sep 11 2014 01:48 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8601.IH H8601 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8601 IH Federal outlays received by each State in each fiscal 1 year. 2 (2) TREATMENT OF CONTRACT AWARDS.—For 3 purposes of calculating the amount of Federal out- 4 lays received by a State under paragraph (1), a Fed- 5 eral contract award shall be treated as a Federal 6 outlay received by each State in which performance 7 under the award takes place in the same proportion 8 that such performance in such State bears to such 9 performance in all the States. 10 (c) STATE DEFINED.—In this section the term 11 ‘‘State’’ means each of the several States. 12 SEC. 3. JOINT REPORT. 13 Not later than the date that is 180 days after the 14 beginning of each calendar year, the Secretary of Com- 15 merce and the Director of the Office of Management and 16 Budget shall— 17 (1) jointly submit to Congress a report con- 18 taining the results of the calculations described in 19 section 2 with respect to such calendar year; and 20 (2) publish the report on a publicly accessible 21 website of the Bureau of Economic Analysis. 22 Æ VerDate Sep 11 2014 01:48 Nov 01, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H8601.IH H8601 pbinns on DSKJLVW7X2PROD with BILLS