AN ACT

To establish a Steady State Economy in the United States of America.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled

SECTION 1. SHORT TITLE.

(a) This Act may be cited as the ‘‘Steady State Economy Act.”

SEC. 2.  FINDINGS AND DECLARATIONS.

(a) The Congress finds that—

(1) Economic growth, as measured by gross domestic product (GDP), requires a growing human population, increasing per capita consumption, or both;

(2) Consistent with the natural sciences, including basic principles of physics and biology, there are limits to economic growth within and among nations;

(3) There is a fundamental conflict between economic growth and environmental protection, including the maintenance of: clean air and water; productive soils; biological diversity; stocks of natural resources including water, timber, fisheries, minerals, and fossil fuels, and; funds of ecosystem services including nutrient cycling, pollination, waste absorption, and carbon sequestration;

(4) A well-maintained, non-degraded environment is the foundation of a productive economy. Therefore, and because of the fundamental conflict between economic growth and environmental protection, there is also a fundamental conflict between economic growth and the long-term maintenance of the economy including jobs, income, and wellbeing;

(5) A well-maintained economy is vital to national defense. Therefore, and because of the fundamental conflict between economic growth and the long-term maintenance of the economy, there is a fundamental conflict between economic growth and national security;

(6) There is abundant environmental and economic evidence that long-term limits to growth have been and are being reached and exceeded in the Nation, other nations, and globally; and

(7) There is abundant evidence that perennial fiscal and monetary efforts to stimulate GDP growth are increasingly causing environmental, economic, and social harm while resulting in fewer benefits, with the harm gradually exceeding the benefits.

(b) The Congress declares that—

(1) It is therefore the policy of the Nation to undertake a gradual but certain transition from the goal and pursuit of economic growth to the goal and pursuit of a sustainable steady state economy, with stabilized or mildly fluctuating population and per capita consumption as generally indicated, all else being equal, by a mildly fluctuating GDP;

(2) The transition to a steady state economy must be undertaken with every intent and effort to achieve and maintain the full employment of the labor force consistent with environmental protection and other aspects of economic sustainability including a balanced federal budget and the effective control of inflation;

(3) The President, President’s Cabinet, Council of Economic Advisors, Federal Reserve, and federal agency directors will immediately cease and desist from developing strategies and initiatives to grow or stimulate the economy. Existing policies, programs, and projects designed explicitly to grow or stimulate the economy shall not be extended beyond fiscal year 2027 or beyond the designated sunset date, whichever comes later;

(4) The Congressional Research Service, collaborating with the Office of Management and Budget and Council of Economic Advisers, will review and summarize the federal agency mission statements, goals, objectives, policies, programs, and practices designed for GDP growth, producing a Report on Federal Growth Incentives no later than 30 April 2027;

(5) A Commission on Economic Sustainability (“the Commission”) is hereby established to include the Administrator of the Environmental Protection Agency and the Secretaries of Agriculture, Energy, and Commerce, chaired by the Secretary of the Interior, to estimate and monitor environmentally sustainable levels of population and socially optimal levels of GDP. The Commission will produce a Report on Sustainable Population and Optimal GDP no later than 31 August 2024

(6) The Commission Chair, in collaboration with the Chairman of the Council of Economic Advisors, Secretary of Commerce, Federal Reserve Chair, and Secretary of the Treasury, drawing on the Report on Federal Growth Incentives and the Report on Sustainable Population and Optimal GDP, and pursuant to the framework provided in subsequent sections herein, will develop and deliver to the President, no later than 31 August 2027, a 25-year Steady-State Transition Plan detailing and scheduling the adjustments, modifications, additions, and deletions necessary to establish a system of government operations most conducive to a steady state economy at an estimated optimal level of GDP;

(7) The President, Cabinet secretaries, and federal agency directors shall not overlook the existence, neglect the enforcement, or underfund the performance of the Clean Air Act, Clean Water Act, Endangered Species Act, National Environmental Policy Act, or any other of the Nation’s environmental laws or regulations on grounds that said laws or regulations may interfere with the workings of the economy or slow the rate of GDP growth.

SEC.3  DEFINITIONS.

(a) In this Act —

(1) The term “ecological footprint” means the impact of an economy or population on natural resources and wildlife habitats, including the use or degradation of natural capital stocks, and the cumulative area required for the production and consumption of goods and services;

(2) The term ‘‘Frontline and Vulnerable Community’’ means a community in which climate change, pollution, or environmental destruction has exacerbated systemic racial, regional, social, environmental, and economic injustices;

(3) The term “growth” means an increase in the production and consumption of goods and services in the aggregate, as measured by real Gross Domestic Product (GDP), reflecting the growth of population times consumption per capita, and entailing higher throughput of materials and energy and therefore a growing ecological footprint;

(4) The term “President” means the President of the United States; and

(5) The term “steady state economy” means an economy with stabilized or mildly fluctuating real GDP, maintained by a rate of throughput within the regenerative and assimilative capacities of the ecosystem.

 

SEC. 104. EXECUTIVE ADOPTION OF STEADY STATE GOALS

(a) COMMISSION ON ECONOMIC SUSTAINABILITY

(1) DEFINITIONS.—In this subsection;

(A) The term “Commission” means the Commission on Economic Sustainability;

(B) The term “Chair” means the Chair of the Commission on Economic Sustainability;

(2) ESTABLISHMENT.— There is hereby established a Commission on Economic Sustainability.

(3) STRUCTURE.— The Commission shall be chaired by the Secretary of the Interior and shall include the Administrator of the Environmental Protection Agency and the Secretaries of Agriculture, Energy, and Commerce.

(4) REPORT ON FEDERAL GROWTH INCENTIVES.—The Chair shall produce a report that identifies all Federal activities that incentivize economic growth.

(A) “Federal Activities” shall include all funded and unfunded rules, regulations, policies, programs, laws, and initiatives implemented by all Federal commissions, departments, agencies, and offices.

(B) The Chair shall deliver this report to the President no later than January 1, 2026.

(5) REPORT ON SUSTAINABLE POPULATION AND OPTIMAL GDP.— The Chair shall produce a report that identifies environmentally sustainable levels of population and provides estimates of socially optimal levels of GDP for the United States.

(A) Chair shall deliver this report to the President no later than January 1, 2028.

(6) STEADY-STATE TRANSITION PLAN.— The Chair shall produce a 25-year plan detailing and scheduling the policy amendments, additions, and deletions necessary to establish a steady state economy at an estimated optimal level of GDP.

(A) The Chair shall reference the Report on Federal Growth Incentives and the Report on Sustainable Population and Optimal GDP when developing the plan

(B) The Chair shall deliver the plan to the President no later than January 1, 2030.

(7) COMMISSION ON ECONOMIC SUSTAINABILITY ANNUAL REPORT. — Commencing in the second year following the date of enactment of this section, and every year thereafter, the Chair shall produce an annual report for the President, made available to the public and distributed in the Federal Register, no later than the close of the calendar year summarizing —

(A)  The action taken during the previous fiscal year in the exercise of the Chair’s functions; including —

(I) An analysis of the effectiveness of that action in enabling the general duty of the Chair to be fulfilled;

(II) The Chair’s work plan for the contemporaneous fiscal year.

Sec. 105. FISCAL POLICY

(a) LUXURY TAX

(1) DEFINITIONS.—In this subsection;

(A) “consumer aircraft” refers to any aircraft produced or distributed for sale or for use, consumption, or enjoyment by private individuals or entities.

(B) “jewelry” means all articles commonly or commercially known as jewelry, whether real or imitation, including watches.

(C) “improvement” is the provision of property or a service in any manner, including by way of sale, transfer, barter, exchange, license, rental, lease, gift, or disposition, that is a provision of—

(I) tangible personal property that is installed in or on, or is affixed to, the subject item;

(II) a service that modifies the subject item and is physically performed in respect of the subject item; or

(III) a prescribed property or service.

(i) For the purposes of this subsection, the provision of property or a service is deemed not to be an improvement to a subject item if it is;

(1) the provision of a repair, cleaning, or maintenance service in respect of the subject item;

(2) the provision of tangible personal property to replace other tangible personal property that is a part of the subject item and that is damaged, defective or non-functioning; or

(3) the provision of tangible personal property or a service that specially equips or adapts the subject item.

(D) “Luxury goods” refers to —

            (I) Yachts;

            (II) Consumer Aircraft;

            (III) Personal transportation whose cost exceeds $70,000;

            (IV) Jewelry, clothing, and accessories whose price exceeds $10,000; and

            (V) Residential property of 5,000 square feet or more.

(E) “Sale” refers to the transfer of ownership of an item pursuant to an agreement between a seller and a purchaser, the item being delivered or made available in the United States in relation to the agreement.

(I) In this Act, a seller transfers ownership of a subject item to a purchaser even if, at the time ownership is transferred, the seller retains partial ownership or transfers partial ownership to any third person.

(II) In this Act, the sale of a subject item to a purchaser is completed at the earlier of—

(i) the time at which possession of the subject item is transferred to the purchaser or to another person, and

(ii) the time at which ownership of the subject item is transferred to the purchaser.

(F) “Secretary” refers to the Secretary of the Treasury.

(G) “Yacht” refers to any vessel used exclusively for pleasure that measures more than sixteen feet in length from end to end over the deck, excluding sheer.

 (2) PROHIBITIONS.

(A) It shall be unlawful to manufacture for sale, offer for sale, or distribute in commerce the following items—

(1) Yachts over 80 feet in length;

(2) Consumer aircraft designed for over 4 passengers; and

(3) Residential properties of 25,000 square feet or more.

(3) CONSUMPTION AND PRODUCTION AND CAPS.

(A) Per capita consumer spending on luxury goods shall not exceed $228,000.00 per annum.

(B) Annual production volume of luxury goods in the United States shall not exceed the production volume of 2024.

(C) The annual caps established by this subsection shall be reduced by 10% for each year following enactment of this Act.

(3) FREQUENT FLYER TAX.— There is hereby imposed an escalating tax applied to on commercial airlines over a one-year period.

(A) The Secretary shall develop a tax schedule for outbound flights starting at the rate of zero for the first outbound flight and increasing progressively with each outbound flight thereafter.

(B) The schedule shall be designed to cap the total amount of flights in order to stay within the United States’ share of the global carbon budget for aviation as determined at the 2015 Paris Climate Agreement (24 billion tons of CO2).

(C) The Secretary shall complete this schedule no later than July 1, 2025.

(D) OPERATION.— The Administrator of the Federal Aviation Administration (FAA) shall create a database with information on the number of flights each passenger has taken.

(I) Passengers shall submit their passport numbers to the relevant airlines before purchasing tickets.

(II) Airlines will send passport numbers to the FAA providing the number of flights the passenger has taken and the level of tax they should be charged.

(III) Once a ticket has been sold, airlines will send a notification to the operator of the database, confirming that submission of the passport number by the passenger resulted in a payment and a flight.

(IV) Airlines will be taxed in proportion to the tax schedule established by the Secretary in paragraph (a)(1) of this section.

(E) EXCEPTIONS.— Exempted passengers are—

(I)  Flight crew; cabin attendants; persons escorting a passenger or goods; persons undertaking repair, maintenance, safety, or security work or ensuring the hygienic preparation and handling of food and drink; children below the age of 2 years who are not allocated a separate seat; children below the age of 12 years and in the lowest class of travel; persons carried free of charge under a statutory obligation; and passengers on connecting flights; and

(II)  Passengers and crew on emergency/public service flights.

(4) TAX ON CONSUMER AIRCRAFT.

(A) GENERAL RULE.— There is hereby imposed on the first sale of any consumer aircraft a tax equal to ten (10) percent of the price to the extent such price exceeds $557,000.00 in 2022.

(B) EXCEPTIONS.— The tax imposed by this section shall not apply to the sale of any aircraft if more than 80 percent of the flights taken by the purchaser are for the express purpose of trade or business.

(I) On the income tax return for each of the first taxable years ending after the date an aircraft on which no tax was imposed by paragraph (2) was placed in service, the taxpayer filing such return shall demonstrate to the satisfaction of the Secretary that the use of such aircraft during each such year met the requirement of paragraph (2).

(II) The tax imposed by this section shall not apply to the sale of any aircraft for use by the purchaser exclusively:

(i) in the aerial application of seeds or fertilizers;

(ii) in a trade or business of providing flight training; or

(iii) in a trade or business of transporting persons or property.

(5) TAX ON YACHTS

(A) GENERAL RULE.— There is hereby imposed on the first sale of any yacht a tax equal to ten (10) percent of the price to the extent such price exceeds $223,000.00.

(B) EXCEPTIONS.— The tax imposed by this section shall not apply to the sale of any yacht for use by the purchaser exclusively in the active conduct of—

(I) a trade or business of commercial fishing;

(II)  transporting persons or property for compensation or hire; or

(III) any other trade or business unless the yacht is to be used predominantly in any activity constituting entertainment, amusement, or recreation as specified in industries assigned a North American Industry Classification System code beginning with 71.

(6) PASSENGER VEHICLES.

(A) IMPOSITION OF TAX.— There is hereby imposed on the 1st retail sale of any passenger vehicle a tax equal to ten (10) percent of the price to the extent that such price exceeds $70,000.

(B) PASSENGER VEHICLE.— For purposes of subsection (a), the term ‘passenger vehicle’ means any 4-wheeled vehicle—

(I) that is manufactured primarily for personal transportation use on public streets, roads, and highways; and

          (II) that is rated at 6,000 pounds unloaded gross vehicle weight or less.

(C) SPECIAL RULES.—

(I) Trucks and Vans.— In the case of a truck or van, paragraph (2)(b) shall be applied by substituting ‘gross vehicle weight’ for ‘unloaded gross vehicle weight’.

(II) Limousines.— In the case of a limousine, paragraph (1) shall be applied without regard to paragraph (2) thereof.

(6) JEWELRY.

(A) IMPOSITION OF TAX.— There is hereby imposed on the 1st retail sale of any jewelry a tax equal to ten (10) percent of the price for which so sold to the extent such price exceeds $10,000.

(7) FURS, CLOTHING, AND ACCESSORIES.

(A) IMPOSITION OF TAX.— There is hereby imposed on the 1st retail sale of the following articles a tax equal to ten (10) percent of the price for which so sold to the extent such price exceeds $10,000—

(I) Articles made of fur;

(II) Articles of which such fur is a major component;

(III) Articles of clothing or footwear intended to be worn on or about the human body; and

(IV) Handbags, luggage, umbrellas, wallets, and other goods commonly or commercially known as accessories.

(8) SECOND AND VACATION PROPERTIES.

(A) IMPOSITION OF TAX.— There is hereby imposed on all second home and vacation properties a tax of 10% of the assessed value of the home.

(I) For the purposes of this section, a second home and vacation property are defined as residential properties visited for at least 14 days per year or used as a residence for at least 10% of the days it is rented out.

(9) INFLATION.

(A) GENERAL RULE.— All taxes established by this act shall be adjusted annually based on an inflation index as determined by the Administrator.

(10) SPECIAL RULES.

(A) USE TREATED AS SALE.— If any person uses an article taxable under this Act (including any use after importation) before the first sale of such article, then such person shall be liable for tax under this subchapter in the same manner as if such article were sold to him.

(B) LEASES CONSIDERED AS SALES.— Except as otherwise provided in this subsection, the qualified lease of an article (including any renewal or any extension of a lease or any subsequent lease of such article) by any person shall be considered a sale of such article.

(I) QUALIFIED LEASE.— For purposes of subsection (b), the term ‘qualified lease’ means —

(i) any lease in the case of a yacht or an aircraft; and

(ii) any long-term lease  in the case of any passenger vehicle.

(C) COMPUTATION OF TAX.— In the case of a qualified lease of an article which is treated as the first sale of such article, the tax shall be computed on the lowest price for which the article is sold by vendors in the ordinary course of trade.

(D) DETERMINATION OF PRICE.— In determining price for purposes of this subchapter —

(I) there shall be included any charge incident to placing the article in condition ready for use

(II) there shall be excluded —

(i) the amount of the tax imposed by this Act; and

(ii) if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee.

SEC. 14. IMPLEMENTATION.

(a) This Act shall take effect on January 1, 2028.

 

SEC.109. LABOR AND INCOME

(a) SALARY CAP.

(1) DEFINITIONS.—In this section —

(A) The term “Secretary” means the Secretary of Labor;

(B) The term “employee” means any individual employed by a business or any of its subsidiaries, whether as a full-time, part-time, seasonal, or temporary worker; and

(C) The term “salaries” means the sum total of remuneration for services performed by an employee for an employer, including—

(I) wages, bonuses, and tips;

(II) any elective deferrals, and;

(III) gains realized from the sale, exchange, or other disposition of stock acquired under a qualified stock option.

(2)  OCCUPATION-SPECIFIC SALARY CAPS.—The Secretary shall develop and implement maximum occupation-specific salary caps.

(A) CAPS.—The Secretary shall update annually the maximum annual salary of each Standard Occupational Classification (SOC) major occupational group, such that the maximum annual salary for each detailed occupation within that major occupational group is 1.8 times the 90th percentile of salaries for that major occupational group.

(B) SECTORS.—These maximum salaries shall apply to all occupations classified under the following SOC Codes—

(I) Management Occupations (SOC Code 110000);

(II) Business and Financial Operations Occupations (SOC Code 130000);

(III) Computer and Mathematical Occupations (SOC Code 150000);

(IV) Architecture and Engineering Occupations (SOC Code 170000);

(V) Life, Physical, and Social Science Occupations (SOC Code 190000);

(VI) Community and Social Services Occupations (SOC Code 210000);

(VII) Legal Occupations (SOC Code 230000);

(VIII) Education Instruction and Library Occupations (SOC Code 250000);

(XV) Arts, Design, Entertainment, Sports, and Media Occupations (SOC Code 270000);

(XVI) Healthcare Practitioners and Technical Occupations (SOC Code 290000);

(XVII) Healthcare Support Occupations (SOC Code 310000);

(XIX) Protective Service Occupations (SOC Code 330000);

(XX) Food Preparation and Serving Related Occupations (SOC Code 350000);

(XXI) Building and Grounds Cleaning and Maintenance Occupations (SOC Code 370000);

(XXII) Personal Care and Service Occupations (SOC Code 390000);

(XXIII) Sales and Related Occupations (SOC Code 410000);

(XXIV) Office and Administrative Support Occupations (SOC Code 430000);

(XXV) Farming, Fishing, and Forestry Occupations (SOC Code 450000);

(XXVI) Construction and Extraction (SOC Code 470000);

(XXVII) Installation, Maintenance, and Repair Workers (SOC Code 490000);

(XXVIII) Production Occupation (SOC Code 510000); and

(XXIX) Transportation and Material Moving Occupation (SOC Code 530000).

(C) APPLICATION.—This salary cap shall apply to—

(I) Corporations subject to Securities and Exchange Commission filing; and

(II) Corporations with gross revenues of at least $100,000,000 a year.

(D) ESTABLISHMENT.—The Secretary shall set occupation-specific salary caps annually, beginning no later than January 1, 2027.

(E) REGULATIONS.—The Secretary shall issue regulations as necessary to prevent avoidance of the purposes of this Act, including regulations to prevent the manipulation of the salary ratio by changes to the composition of the workforce (including by using the services of contractors rather than employees).

(F) ENFORCEMENT AND PENALTIES.—The Office of Labor-Management Standards shall be responsible for enforcing this section and the regulations promulgated under this part.

(I) PETITION—The Office of Labor-Management Standards shall have the power to petition any court of appeals of the United States or any district court of the United States, within any circuit or district where excessive salaries have occurred, for the enforcement of such order and for appropriate temporary relief, issuance of a restraining order, or both.

(II) INJUNCTIONS—The Office of Labor-Management Standards shall have power, upon issuance of a complaint as provided in paragraph (1) to petition any United States district court for a restraining order against parties targeted in the complaint.

(G) PENALTIES.—Companies in violation of this section will be subject to criminal penalties of up to $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both punishments, in the discretion of the court.

(H)  SELF-EMPLOYMENT AND EMPLOYEE-OWNER INCOME CAPS.— All net earnings from self-employment or employee-ownership exceeding $400,000 in a taxable year shall be taxed as ordinary income at 100%.

SEC. 110. HOUSING AND TRANSPORTATION

(a) MILEAGE FEE

(1) DEFINITIONS.—In this section —

(A) The term “Department” means the Department of the Treasury;

(B) The term “Secretary” means the Secretary of the Treasury;

(C) The term “vehicle” means any air-based, land-based, or seafaring recreational or commercial motor carrier meeting the federal safety standards set forth in the Department of Defense’s commercial vehicle classification guide, whose sole purpose is to provide transportation services for passengers or commodities;

(D) The term “subject vehicle” means a vehicle for which the fees established by this part are applicable;

(E) The term “heavy truck” means vehicles classified as 2 through 13 inclusive in the Federal Highway Administration Vehicle Category Classification System;

(F) The term “passenger automobile” means all sedans, coupes, sport utility vehicles, and station wagons manufactured primarily for the purpose of carrying passengers;

(G) The term “personally identifying information” means any data that identifies or describes a person including, but not limited to, travel pattern data, addresses, telephone numbers, email addresses, photographs, bank account information, and credit card numbers;

(H) The term “registered owner” means a person other than a vehicle dealer, who is required to register a subject vehicle; and

(I) The term “onboard vehicle metering system” means the technology that tracks a vehicle’s miles traveled from a product’s point of origin to the point of receipt.

(2) MILEAGE FEE.—  There is hereby imposed upon the owner of all subject vehicles a mileage fee.

(A) FEE STRUCTURE.— The fee shall be structured according to the following formulas—

(I) Air-based vehicle, 20 cents per mile;

(II) Maritime vehicle, 15 cents per mile;

(III) Heavy truck, 10 cents per mile;

(IV) Rail, 5 cents per mile; and

(V) Passenger vehicle, 2.5 cents per mile.

(B) COMMENCEMENT.— This fee shall be paid by registered owners of subject vehicles on June 1 of each calendar year, commencing June 1, 2027.

(I) The mileage fee shall begin to accrue from the date on which the registered owner is first required to register the subject vehicle.

(C) LEASE.— During the term of a lease, the lessee of a subject vehicle shall pay the mileage fee for metered use by the subject vehicle.

(D) UNCREWED VEHICLES.— The mileage fee shall be paid by the registered owner of all uncrewed subject vehicles, including remotely or automatically controlled drones.

(E) EXCEPTIONS.— This section shall not apply to a vehicle that is owned by a State, any political subdivision of a State, or the Federal government.

(F) METHODS.— The Secretary shall establish methods for recording and reporting the miles traveled by all subject vehicles. These methods shall be chosen from a non-exhaustive list of onboard vehicle metering systems that vary by mode of travel: automated GPS for road-based vehicles and maritime vehicles, black-box GPS systems for air-based vehicles, and on-train monitoring recorders for rail.

(I) CONSIDERATIONS.— When taking action under this section the Secretary shall consider—

(i) The accuracy of the data collected;

(ii) The security of the technology;

(iii) The technology’s resistance to falsification;

(iv) Ease of audit compliance; and

(v) Other relevant factors that the Department deems important.

(II) PRIVACY.— The system established to collect the mileage fee under this section may not involve the collection of any personally identifying information beyond what is necessary to properly calculate, report, and collect the fees established in this Act.

(G) IMPLEMENTATION.— The Secretary shall complete and disseminate methods for recording miles traveled by subject vehicles no later than January 1, 2027.

(H) PASSENGER RAIL TRUST FUND. —There is established in the Treasury a ‘Passenger Rail Trust Fund’, to which no less than 50% of all revenue raised by this part will be appropriated.

(I) PURPOSE.— The purpose of this fund is to improve publicly operated passenger rail facilities, modernize the rail fleet, provide the capital necessary for railway development, and conserve the supply of natural resources through reductions in energy consumption and increasing efficiency.

(II) MANAGEMENT.— It shall be the duty of the Secretary to manage all revenue allocated in the ‘Passenger Rail Trust Fund’ for the purposes specified in subsection (b).

(I) HIGHWAY TRUST FUND.— No less than 50% of all revenue raised by this section will be allocated to the Highway Trust Fund.

(J) FEE RATE ADJUSTMENT.—  The Secretary shall adjust the fees imposed by this section no later than January 1, 2028 and on January 1 of each year thereafter.

(I) The Secretary shall consider issues of inflation, equity, efficiency, and ecological health when making these adjustments.

Kl) ENFORCEMENT.—  On request of the Secretary, the Attorney General may bring a civil action in a court of competent jurisdiction to enforce compliance with this Act.

(L) PENALTIES.— Any person who violates the provisions of this Act, or any person who willfully and knowingly makes or reports false statements in any documents or reports required under this Act, shall be subject to the penalties specified in Part 20 of the IRS Handbook.