[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 865 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 865

To ensure that any peace dividend is invested in America's families and 
                           deficit reduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1993

 Mr. Solomon introduced the following bill; which was referred jointly 
 to the Committees on Government Operations, Rules, and Ways and Means

_______________________________________________________________________

                                 A BILL


 
To ensure that any peace dividend is invested in America's families and 
                           deficit reduction.

    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 ``Ronald Reagan Peace Dividend 
Investment Act of 1993''.

SEC. 2. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 1974.

    (a) In general.--Title VI of the Congressional Budget Act of 1974 
is amended by adding after section 606 the following new section:

``SEC. 606A. ALLOCATION OF REDUCTIONS IN DISCRETIONARY DEFENSE 
              SPENDING.

    ``(a) In General.--If pursuant to section 251(a)(7) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 outlays within 
accounts under major functional category 050 (defense programs) for 
fiscal year 1994 or 1995 are estimated to be below the such outlays for 
fiscal year 1993, the difference shall be used to reduce the deficit 
and to increase the personal income tax exemption as provided in 
subsection (c).
    ``(b) Adjustment to Discretionary Spending Limits.--The amounts by 
which aggregate outlays for defense programs (functional category 050) 
in fiscal year 1994 or 1995 are estimated to be below such outlays for 
fiscal year 1993, then the discretionary spending limits calculated 
pursuant to section 251(b) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 shall be adjusted for this difference as follows:
            ``(1) Outlay adjustment.--The adjustment for fiscal years 
        1994 and 1995 shall be an amount equal to such difference in 
        such fiscal years.
            ``(2) Budget authority adjustment.--The adjustment for 
        fiscal year 1994 shall be an amount equal to the outlay 
        difference for fiscal year 1993 divided by the aggregate spend 
        out rate for the defense discretionary appropriations enacted 
        for fiscal year 1993 multiplied by the baseline inflator for 
        fiscal year 1994. The adjustment for fiscal year 1995 shall be 
        an amount equal to the adjustment to the discretionary spending 
        limit for budget authority for fiscal year 1994 multiplied by 
        the baseline inflator for fiscal year 1995.
            ``(3) Definition.--For purposes of this subsection, the 
        term `baseline inflator' has the meaning given to it in section 
        251(b)(1)(B)(ii) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
    ``(c) Allocation of Adjustments.--The adjustments in the 
discretionary spending limits for outlays described in subsection 
(b)(1) shall be allocated in the following manner:
            ``(1) Deficit reduction.--The maximum deficit amount 
        calculated pursuant to section 253 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 for any of fiscal years 
        1994 and 1995 shall be reduced by an amount equal to the change 
        in the estimated deficit resulting from such reduced outlays 
        and the reduction in revenue described in paragraph (2).
            ``(2) Personal exemption.--The Secretary of the Treasury 
        shall increase the personal exemption amount for individuals as 
        determined under section 151 of the Internal Revenue Code of 
        1986 by an amount estimated to reduce receipts in the calendar 
        year beginning during such fiscal year by an amount equal to 
        one-half of the adjustment described in subsection (b)(1) to 
        the discretionary spending limit for outlays for that fiscal 
        year.
    ``(d) Permitting of Peace Dividend Investment.--Legislation 
affecting receipts as a result of the requirements of section (c)(2) 
shall not be considered legislation that increases the deficit for 
purposes of section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985.
    ``(e) Adjustments to Congressional Budget Totals.--The reductions 
in the maximum deficit amount and revenues required by subsection (c) 
shall be reflected in the concurrent resolution on the budget and the 
committee spending allocations for fiscal years 1994 and 1995.
    ``(f) Point of Order.--
            ``(1) It shall not be in order in the House of 
        Representatives or the Senate to consider any bill, resolution, 
        amendment, or conference report that would reduce defense 
        spending below its fiscal year 1993 level if such bill, 
        resolution, amendment, or conference report does not allocate 
        the total amount of reduced new budget authority or outlays 
        between deficit reduction and increases in the personal income 
        tax exemption as provided in this section.
            ``(2) For purposes of this subsection, the levels of 
        defense spending for a fiscal year shall be determined on the 
        basis of estimates made by the Committee on the Budget.''.
    (b) Point of Order.--The last sentence of section 904(d) of the 
Congressional Budget Act of 1974 is amended by striking ``and 606(c)'' 
and inserting ``606(c), and 606A''.

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