[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1058 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1058

   To amend the Internal Revenue Code of 1986 to create real jobs in 
  America through investment and savings incentives, to pay for such 
   incentives by decreasing Federal spending, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 28 (legislative day, April 19), 1993

 Mr. Roth (for himself, Mr. Lott, Mr. Dole, Mr. Simpson, Mr. Cochran, 
 Mr. Nickles, Mr. Mack, Mr. Craig, Mr. Bennett, Mr. Hatch, Mr. Wallop, 
  Mr. Thurmond, Mr. Stevens, Mr. Helms, Mr. Murkowski, Mr. Burns, Mr. 
    Coats, Mr. Smith, Mr. Faircloth, and Mr. Gregg) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to create real jobs in 
  America through investment and savings incentives, to pay for such 
   incentives by decreasing Federal spending, 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 ``Real Jobs for America Act of 1993''.

               TITLE I--INVESTMENT AND SAVINGS INCENTIVES

SEC. 100. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

    Subtitle A--Reductions in Cost of Capital and Tax Penalties on 
                               Investment

SEC. 101. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING GAIN 
              OR LOSS.

    (a) In General.--Part II of subchapter O of chapter 1 (relating to 
basis rules of general application) is amended by inserting after 
section 1021 the following new section:

``SEC. 1022. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING 
              GAIN OR LOSS.

    ``(a) General Rule.--
            ``(1) Indexed basis substituted for adjusted basis.--Except 
        as provided in paragraph (2), if an indexed asset which has 
        been held for more than 3 years is sold or otherwise disposed 
        of, for purposes of this title the indexed basis of the asset 
        shall be substituted for its adjusted basis.
            ``(2) Exception for depreciation, etc.--The deduction for 
        depreciation, depletion, and amortization shall be determined 
        without regard to the application of paragraph (1) to the 
        taxpayer or any other person.
    ``(b) Indexed Asset.--
            ``(1) In general.--For purposes of this section, the term 
        `indexed asset' means--
                    ``(A) stock in a corporation,
                    ``(B) tangible property (or any interest therein) 
                which is a capital asset or property used in the trade 
                or business (as defined in section 1231(b)), and
                    ``(C) the principal residence of the taxpayer 
                (within the meaning of section 1034).
            ``(2) Certain property excluded.--For purposes of this 
        section, the term `indexed asset' does not include--
                    ``(A) Creditor's interest.--Any interest in 
                property which is in the nature of a creditor's 
                interest.
                    ``(B) Options.--Any option or other right to 
                acquire an interest in property.
                    ``(C) Net lease property.--In the case of a lessor, 
                net lease property (within the meaning of subsection 
                (h)(1)).
                    ``(D) Certain preferred stock.--Stock which is 
                fixed and preferred as to dividends and does not 
                participate in corporate growth to any significant 
                extent.
                    ``(E) Stock in certain corporations.--Stock in--
                            ``(i) an S corporation (within the meaning 
                        of section 1361),
                            ``(ii) a personal holding company (as 
                        defined in section 542), and
                            ``(iii) a foreign corporation.
                    ``(F) Collectibles.--Any collectible (as defined in 
                section 408(m)(2)).
            ``(3) Exception for stock in foreign corporation which is 
        regularly traded on national or regional exchange.--Clause 
        (iii) of paragraph (2)(E) shall not apply to stock in a foreign 
        corporation the stock of which is listed on the New York Stock 
        Exchange, the American Stock Exchange, or any domestic regional 
        exchange for which quotations are published on a regular basis 
        other than--
                    ``(A) stock of a foreign investment company (within 
                the meaning of section 1246(b)), and
                    ``(B) stock in a foreign corporation held by a 
                United States person who meets the requirements of 
                section 1248 (a)(2).
    ``(c) Indexed Basis.--For purposes of this section--
            ``(1) Indexed basis.--The indexed basis for any asset is--
                    ``(A) the adjusted basis of the asset, multiplied 
                by
                    ``(B) the applicable inflation ratio.
            ``(2) Applicable inflation ratio.--The applicable inflation 
        ratio for any asset is the percentage arrived at by dividing--
                    ``(A) the CPI for the calendar year preceding the 
                calendar year in which the disposition takes place, by
                    ``(B) the CPI for the calendar year 1992 (or, if 
                later, the calendar year preceding the calendar year in 
                which the asset was acquired by the taxpayer).
        The applicable inflation ratio shall not be taken into account 
        unless it is greater than 1. The applicable inflation ratio for 
        any asset shall be rounded to the nearest one-tenth of 1 
        percent.
            ``(3) CPI.--The CPI for any calendar year shall be 
        determined under section 1(f)(4).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Treatment as separate asset.--In the case of any 
        asset, the following shall be treated as a separate asset:
                    ``(A) a substantial improvement to property,
                    ``(B) in the case of stock of a corporation, a 
                substantial contribution to capital, and
                    ``(C) any other portion of an asset to the extent 
                that separate treatment of such portion is appropriate 
                to carry out the purposes of this section.
            ``(2) Assets which are not indexed assets throughout 
        holding period.--
                    ``(A) In general.--The applicable inflation ratio 
                shall be appropriately reduced for calendar months at 
                any time during which the asset was not an indexed 
                asset.
                    ``(B) Certain short sales.--For purposes of 
                applying subparagraph (A), an asset shall be treated as 
                not an indexed asset for any short sale period during 
                which the taxpayer or the taxpayer's spouse sells short 
                property substantially identical to the asset. For 
                purposes of the preceding sentence, the short sale 
                period begins on the day after the substantially 
                identical property is sold and ends on the closing date 
                for the sale.
            ``(3) Treatment of certain distributions.--A distribution 
        with respect to stock in a corporation which is not a dividend 
        shall be treated as a disposition.
            ``(4) Section cannot increase ordinary loss.--To the extent 
        that (but for this paragraph) this section would create or 
        increase a net ordinary loss to which section 1231(a)(2) 
        applies or an ordinary loss to which any other provision of 
        this title applies, such provision shall not apply. The 
        taxpayer shall be treated as having a long-term capital loss in 
        an amount equal to the amount of the ordinary loss to which the 
        preceding sentence applies.
            ``(5) Acquisition date where there has been prior 
        application of subsection (a)(1) with respect to the 
        taxpayer.--If there has been a prior application of subsection 
        (a)(1) to an asset while such asset was held by the taxpayer, 
        the date of acquisition of such asset by the taxpayer shall be 
        treated as not earlier than the date of the most recent such 
        prior application.
            ``(6) Collapsible corporations.--The application of section 
        341(a) (relating to collapsible corporations) shall be 
        determined without regard to this section.
    ``(e) Certain Conduit Entities.--
            ``(1) Regulated investment companies; real estate 
        investment trusts; common trust funds.--
                    ``(A) In general.--Stock in a qualified investment 
                entity shall be an indexed asset for any calendar month 
                in the same ratio as the fair market value of the 
                assets held by such entity at the close of such month 
                which are indexed assets bears to the fair market value 
                of all assets of such entity at the close of such 
                month.
                    ``(B) Ratio of 90 percent or more.--If the ratio 
                for any calendar month determined under subparagraph 
                (A) would (but for this subparagraph) be 90 percent or 
                more, such ratio for such month shall be 100 percent.
                    ``(C) Ratio of 10 percent or less.--If the ratio 
                for any calendar month determined under subparagraph 
                (A) would (but for this subparagraph) be 10 percent or 
                less, such ratio for such month shall be zero.
                    ``(D) Valuation of assets in case of real estate 
                investment trusts.--Nothing in this paragraph shall 
                require a real estate investment trust to value its 
                assets more frequently than once each 36 months (except 
                where such trust ceases to exist). The ratio under 
                subparagraph (A) for any calendar month for which there 
                is no valuation shall be the trustee's good faith 
                judgment as to such valuation.
                    ``(E) Qualified investment entity.--For purposes of 
                this paragraph, the term `qualified investment entity' 
                means--
                            ``(i) a regulated investment company 
                        (within the meaning of section 851),
                            ``(ii) a real estate investment trust 
                        (within the meaning of section 856), and
                            ``(iii) a common trust fund (within the 
                        meaning of section 584).
            ``(2) Partnerships.--In the case of a partnership, the 
        adjustment made under subsection (a) at the partnership level 
        shall be passed through to the partners.
            ``(3) Subchapter s corporations.--In the case of an 
        electing small business corporation, the adjustment under 
        subsection (a) at the corporate level shall be passed through 
        to the shareholders.
    ``(f) Dispositions Between Related Persons.--
            ``(1) In general.--This section shall not apply to any sale 
        or other disposition of property between related persons except 
        to the extent that the basis of such property in the hands of 
        the transferee is a substituted basis.
            ``(2) Related persons defined.--For purposes of this 
        section, the term `related persons' means--
                    ``(A) persons bearing a relationship set forth in 
                section 267(b), and
                    ``(B) persons treated as single employer under 
                subsection (b) or (c) of section 414.
    ``(g) Transfers To Increase Indexing Adjustment or Depreciation 
Allowance.--If any person transfers cash, debt, or any other property 
to another person and the principal purpose of such transfer is--
            ``(1) to secure or increase an adjustment under subsection 
        (a), or
            ``(2) to increase (by reason of an adjustment under 
        subsection (a)) a deduction for depreciation, depletion, or 
        amortization,
the Secretary may disallow part or all of such adjustment or increase.
    ``(h) Definitions.--For purposes of this section--
            ``(1) Net lease property defined.--The term `net lease 
        property' means leased real property where--
                    ``(A) the term of the lease (taking into account 
                options to renew) was 50 percent or more of the useful 
                life of the property, and
                    ``(B) for the period of the lease, the sum of the 
                deductions with respect to such property which are 
                allowable to the lessor solely by reason of section 162 
                (other than rents and reimbursed amounts with respect 
                to such property) is 15 percent or less of the rental 
                income produced by such property.
            ``(2) Stock includes interest in common trust fund.--The 
        term `stock in a corporation' includes any interest in a common 
        trust fund (as defined in section 584(a)).
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''
    (b) Adjustment to Apply for Purposes of Determining Earnings and 
Profits.--Subsection (f) of section 312 of such Code (relating to 
effect on earnings and profits of gain or loss and of receipt of tax-
free distributions) is amended by adding at the end thereof the 
following new paragraph:
            ``(3) Effect on earnings and profits of indexed basis.--For 
        substitution of indexed basis for adjusted basis in the case of 
        the disposition of certain assets on or after January 1, 1999, 
        see section 1022(a)(1).''
    (c) Clerical Amendment.--The table of sections for part II of 
subchapter O of such chapter 1 is amended by inserting after the item 
relating to section 1021 the following new item:

                              ``Sec. 1022. Indexing of certain assets 
                                        for purposes of determining 
                                        gain or loss.''
    (d) Effective Date.--The amendments made by this section shall 
apply to dispositions on or after January 1, 1993, in taxable years 
ending after such date.

SEC. 102. MODIFICATION TO MINIMUM TAX DEPRECIATION RULES.

    (a) General Rule.--Paragraph (1) of section 56(a) (relating to 
depreciation) is amended by redesignating subparagraphs (B), (C), and 
(D) as subparagraphs (C), (D), and (E), respectively, and by inserting 
after subparagraph (A) the following new subparagraph:
                    ``(B) Treatment of certain personal property placed 
                in service after june 30, 1993.--
                            ``(i) In general.--In the case of any 
                        property to which this subparagraph applies, 
                        the depreciation deduction allowable under 
                        section 167 shall be determined under the 
                        alternative system under section 168(g), except 
                        that the method of depreciation used shall be 
                        the method used for purposes of section 168.
                            ``(ii) Property to which subparagraph 
                        applies.--This subparagraph shall apply to any 
                        tangible property placed in service after June 
                        30, 1993, except that this subparagraph shall 
                        not apply to any residential rental property or 
                        nonresidential real property (within the 
                        meaning of section 168(e)).
                            ``(iii) Coordination with subparagraph 
                        (a).--Subparagraph (A) shall not apply to any 
                        property to which this subparagraph applies.''
    (b) Elimination of ACE Depreciation Adjustment.--Clause (i) of 
section 56(g)(4)(A) (relating to depreciation adjustments for computing 
adjusted current earnings) is amended by adding at the end thereof the 
following new sentence: ``The preceding sentence shall not apply to any 
property to which subsection (a)(1)(B) applies, and the depreciation 
deduction with respect to such property shall be determined under the 
rules of subsection (a)(1)(B).''
    (c) Conforming Amendments.--Section 56(g)(4) is amended by striking 
subparagraphs (E), (F), and (G) and by redesignating subparagraph (I) 
as subparagraph (E).
    (d) Effective Dates.--
            (1) In general.--Except as provided in this subsection, the 
        amendments made by this section shall apply to property placed 
        in service after June 30, 1993.
            (2) Conforming changes.--The amendments made by subsection 
        (c) shall apply to exchanges, acquisitions, and ownership 
        changes after the date of the enactment of this Act.
            (3) Coordination with transitional rules.--The amendments 
        made by this section shall not apply to any property to which 
        paragraph (1) of section 56(a) of the Internal Revenue Code of 
        1986 does not apply by reason of subparagraph (D)(i) thereof 
        (as redesignated by subsection (a) of this section).

                Subtitle B--Investment in Small Business

SEC. 111. INCREASE IN EXPENSE TREATMENT FOR SMALL BUSINESS.

    (a) General Rule.--Paragraph (1) of section 179(b) (relating to 
dollar limitation) is amended by striking ``$10,000'' and inserting 
``$25,000''.
    (b) Indexation.--Section 179(b) is amended by adding at the end the 
following new paragraph:
            ``(5) Indexation.--In the case of any taxable year 
        beginning after 1994, the $25,000 amount under paragraph (1) 
        shall be increased by an amount equal to such dollar amount 
        multiplied by the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, except that section 1(f)(3)(B) shall be applied by 
        substituting `1993' for `1989'. The amount determined under the 
        preceding sentence shall be rounded to the nearest multiple of 
        $100.''
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after June 30, 1992.

  Subtitle C--Increased Savings Through Individual Retirement Accounts

                         PART I--IRA DEDUCTION

SEC. 121. RESTORATION OF IRA DEDUCTION.

    (a) In General.--Section 219 (relating to deduction for retirement 
savings) is amended by striking subsection (g) and by redesignating 
subsection (h) as subsection (g).
    (b) Technical and Conforming Amendments.--
            (1) Subsection (f) of section 219 is amended by striking 
        paragraph (7).
            (2) Paragraph (5) of section 408(d) is amended by striking 
        the last sentence.
            (3) Section 408(o) is amended by adding at the end thereof 
        the following new paragraph:
            ``(5) Termination.--This subsection shall not apply to any 
        designated nondeductible contribution for any taxable year 
        beginning after December 31, 1995.''
            (4) Subsection (b) of section 4973 is amended by striking 
        the last sentence.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 1995.
            (2) Special accounts.--For purposes of applying section 
        408A of the Internal Revenue Code of 1986 (as added by section 
        131), the amendments made by this section shall apply to 
        taxable years beginning after December 31, 1993 (and to 
        qualified transfers after the date of the enactment of this 
        Act).

SEC. 122. INFLATION ADJUSTMENT FOR DEDUCTIBLE AMOUNT.

    (a) In General.--Section 219, as amended by section 121, is amended 
by redesignating subsection (g) as subsection (h) and by inserting 
after subsection (f) the following new subsection:
    ``(g) Cost-of-Living Adjustments.--
            ``(1) In general.--If the cost-of-living amount for any 
        calendar year is equal to or greater than $500, then each 
        applicable dollar amount (as previously adjusted under this 
        subsection) for any taxable year beginning in any subsequent 
        calendar year shall be increased by $500.
            ``(2) Cost-of-living amount.--The cost-of-living amount for 
        any calendar year is the excess (if any) of--
                    ``(A) $2,000, increased by the cost-of-living 
                adjustment for such calendar year, over
                    ``(B) the applicable dollar amount in effect under 
                subsection (b)(1)(A) for taxable years beginning in 
                such calendar year.
            ``(3) Cost-of-living adjustment.--For purposes of this 
        subsection--
                    ``(A) In general.--The cost-of-living adjustment 
                for any calendar year is the percentage (if any) by 
                which--
                            ``(i) the CPI for such calendar year, 
                        exceeds
                            ``(ii) the CPI for 1994.
                    ``(B) CPI for any calendar year.--The CPI for any 
                calendar year shall be determined in the same manner as 
                under section 1(f)(4).
            ``(4) Applicable dollar amount.--For purposes of this 
        subsection, the term `applicable dollar amount' means the 
        dollar amount in effect under any of the following provisions:
                    ``(A) Subsection (b)(1)(A).
                    ``(B) Subsection (c)(2)(A)(i).
                    ``(C) The last sentence of subsection (c)(2).''
    (b) Conforming Amendments.--
            (1) Section 408(a)(1) is amended by striking ``in excess of 
        $2,000 on behalf of any individual'' and inserting ``on behalf 
        of any individual in excess of the amount in effect for such 
        taxable year under section 219(b)(1)(A)''.
            (2) Section 408(b)(2)(B) is amended by striking ``$2,000'' 
        and inserting ``the dollar amount in effect under section 
        219(b)(1)(A)''.
            (3) Section 408(d)(5) is amended by striking ``$2,250'' and 
        inserting ``the dollar amount in effect for such taxable year 
        under section 219(c)(2)(A)(i)''.
            (4) Section 408(j) is amended by striking ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 123. COORDINATION OF IRA DEDUCTION LIMIT WITH ELECTIVE DEFERRAL 
              LIMIT.

    (a) In General.--Section 219(b) (relating to maximum amount of 
deduction) is amended by adding at the end thereof the following new 
paragraph:
            ``(4) Coordination with elective deferral limit.--The 
        amount determined under paragraph (1) or subsection (c)(2) with 
        respect to any individual for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the maximum amount of elective deferrals of 
                the individual which are excludable from gross income 
                for the taxable year under section 402(g)(1), over
                    ``(B) the amount so excluded.''
    (b) Conforming Amendment.--Section 219(c) is amended by adding at 
the end thereof the following new paragraph:
            ``(3) Cross reference.--

                                ``For reduction in paragraph (2) 
amount, see subsection (b)(4).''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

                  PART II--NONDEDUCTIBLE TAX-FREE IRAs

SEC. 131. ESTABLISHMENT OF NONDEDUCTIBLE TAX-FREE INDIVIDUAL RETIREMENT 
              ACCOUNTS.

    (a) In General.--Subpart A of part I of subchapter D of chapter 1 
(relating to pension, profit-sharing, stock bonus plans, etc.) is 
amended by inserting after section 408 the following new section:

``SEC. 408A. INDIVIDUAL RETIREMENT PLUS ACCOUNTS.

    ``(a) General Rule.--Except as provided in this section, an 
individual retirement plus account shall be treated for purposes of 
this title in the same manner as an individual retirement plan.
    ``(b) Individual Retirement Plus Account.--For purposes of this 
title, the term `individual retirement plus account' means an 
individual retirement plan which is designated at the time of 
establishment of the plan as an individual retirement plus account.
    ``(c) Treatment of Contributions.--
            ``(1) No deduction allowed.--No deduction shall be allowed 
        under section 219 for a contribution to an individual 
        retirement plus account.
            ``(2) Contribution limit.--The aggregate amount of 
        contributions for any taxable year to all individual retirement 
        plus accounts maintained for the benefit of an individual shall 
        not exceed the excess (if any) of--
                    ``(A) the maximum amount allowable as a deduction 
                under section 219 with respect to such individual for 
                such taxable year, over
                    ``(B) the amount so allowed.
            ``(3) Special rules for qualified transfers.--
                    ``(A) In general.--No rollover contribution may be 
                made to an individual retirement plus account unless it 
                is a qualified transfer.
                    ``(B) Limit not to apply.--The limitation under 
                paragraph (2) shall not apply to a qualified transfer 
                to an individual retirement plus account.
    ``(d) Tax Treatment of Distributions.--
            ``(1) In general.--Except as provided in this subsection, 
        any amount paid or distributed out of an individual retirement 
        plus account shall not be included in the gross income of the 
        distributee.
            ``(2) Exception for earnings on contributions held less 
        than 5 years.--
                    ``(A) In general.--Any amount distributed out of an 
                individual retirement plus account which consists of 
                earnings allocable to contributions made to the account 
                during the 5-year period ending on the day before such 
                distribution shall be included in the gross income of 
                the distributee for the taxable year in which the 
                distribution occurs.
                    ``(B) Ordering rule.--
                            ``(i) First-in, first-out rule.--
                        Distributions from an individual retirement 
                        plus account shall be treated as having been 
                        made--
                                    ``(I) first from the earliest 
                                contribution (and earnings allocable 
                                thereto) remaining in the account at 
                                the time of the distribution, and
                                    ``(II) then from other 
                                contributions (and earnings allocable 
                                thereto) in the order in which made.
                            ``(ii) Allocations between contributions 
                        and earnings.--Any portion of a distribution 
                        allocated to a contribution (and earnings 
                        allocable thereto) shall be treated as 
                        allocated first to the earnings and then to the 
                        contribution.
                            ``(iii) Allocation of earnings.--Earnings 
                        shall be allocated to a contribution in such 
                        manner as the Secretary may by regulations 
                        prescribe.
                            ``(iv) Contributions in same year.--Except 
                        as provided in regulations, all contributions 
                        made during the same taxable year may be 
                        treated as 1 contribution for purposes of this 
                        subparagraph.
                    ``(C) Cross reference.--

                                ``For additional tax for early 
withdrawal, see section 72(t).
            ``(3) Qualified transfer.--
                    ``(A) In general.--Paragraph (2) shall not apply to 
                any distribution which is transferred in a qualified 
                transfer to another individual retirement plus account.
                    ``(B) Contribution period.--For purposes of 
                paragraph (2), the individual retirement plus account 
                to which any contributions are transferred shall be 
                treated as having held such contributions during any 
                period such contributions were held (or are treated as 
                held under this subparagraph) by the individual 
                retirement plus account from which transferred.
            ``(4) Special rules relating to certain transfers.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, in the case of a qualified transfer 
                to an individual retirement plus account from an 
                individual retirement plan or qualified plan which is 
                not an individual retirement plus account--
                            ``(i) there shall be included in gross 
                        income any amount which, but for the qualified 
                        transfer, would be includible in gross income, 
                        but
                            ``(ii) section 72(t) shall not apply to 
                        such amount.
                    ``(B) 4-year ratable inclusion.--In the case of any 
                qualified transfer described in subparagraph (A) which 
                is made during the phase-in period, any amount 
                includible in gross income under subparagraph (A) with 
                respect to such contribution shall be includible 
                ratably over the 4-taxable year period beginning in the 
                taxable year in which the amount was paid or 
                distributed out of the individual retirement plan.
                    ``(C) Phase-in period.--For purposes of 
                subparagraph (B), the term `phase-in period' means the 
                period beginning on the date of the enactment of this 
                section and ending on the last day of the 2d calendar 
                year following the calendar year in which such date of 
                enactment occurs.''
    ``(e) Qualified Transfer.--For purposes of this section--
            ``(1) In general.--The term `qualified transfer' means a 
        transfer to an individual retirement plus account--
                    ``(A) from another such account; or
                    ``(B) from an individual retirement plan or 
                qualified plan, but only if such transfer meets the 
                requirements of section 408(d)(3).
            ``(2) Qualified plan.--The term `qualified plan' means any 
        trust or contract described in section 72(e)(5)(D) (i) or (ii).
    (b) Early Withdrawal Penalty.--Section 72(t), as amended by section 
141(c), is amended by adding at the end thereof the following new 
paragraph:
            ``(8) Rules relating to special individual retirement 
        accounts.--In the case of an individual retirement plus account 
        under section 408A--
                    ``(A) this subsection shall only apply to 
                distributions out of such account which consist of 
                earnings allocable to contributions made to the account 
                during the 5-year period ending on the day before such 
                distribution, and
                    ``(B) paragraph (2)(A)(i) shall not apply to any 
                distribution described in subparagraph (A).''
    (c) Excess Contributions.--Section 4973(b) is amended by adding at 
the end thereof the following new sentence: ``For purposes of 
paragraphs (1)(B) and (2)(C), the amount allowable as a deduction under 
section 219 shall be computed without regard to section 408A.''
    (d) Conforming Amendment.--The table of sections for subpart A of 
part I of subchapter D of chapter 1 is amended by inserting after the 
item relating to section 408 the following new item:

                              ``Sec. 408A. Individual retirement plus 
                                        accounts.''
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 1993.
            (2) Qualified transfers in 1993.--The amendments made by 
        this section shall apply to any qualified transfer after the 
        date of the enactment of this Act.

                  PART III--PENALTY-FREE DISTRIBUTIONS

SEC. 141. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY 
              TO PURCHASE FIRST HOMES, TO PAY HIGHER EDUCATION OR 
              FINANCIALLY DEVASTATING MEDICAL EXPENSES, OR BY THE LONG-
              TERM UNEMPLOYED.

    (a) In General.--Paragraph (2) of section 72(t) (relating to 
exceptions to 10-percent additional tax on early distributions from 
qualified retirement plans) is amended by adding at the end thereof the 
following new subparagraph:
                    ``(D) Distributions from certain plans for first 
                home purchases or educational expenses.--Distributions 
                to an individual from an individual retirement plan, or 
                from amounts attributable to employer contributions 
                made pursuant to elective deferrals described in 
                subparagraph (A) or (C) of section 402(g)(3) or section 
                501(c)(18)(D)(iii)--
                            ``(i) which are qualified first-time 
                        homebuyer distributions (as defined in 
                        paragraph (6)); or
                            ``(ii) to the extent such distributions do 
                        not exceed the qualified higher education 
                        expenses (as defined in paragraph (7)) of the 
                        taxpayer for the taxable year.''
    (b) Financially Devastating Medical Expenses.--
            (1) In general.--Section 72(t)(3)(A) is amended by striking 
        ``(B),''.
            (2) Certain lineal descendants and ancestors treated as 
        dependents.--Subparagraph (B) of section 72(t)(2) is amended by 
        striking ``medical care'' and all that follows and inserting 
        ``medical care determined--
                            ``(i) without regard to whether the 
                        employee itemizes deductions for such taxable 
                        year, and
                            ``(ii) by treating such employee's 
                        dependents as including--
                                    ``(I) all children and 
                                grandchildren of the employee or such 
                                employee's spouse, and
                                    ``(II) all ancestors of the 
                                employee or such employee's spouse.''
            (3) Conforming amendment.--Subparagraph (B) of section 
        72(t)(2) is amended by striking ``or (C)'' and inserting ``, 
        (C) or (D)''.
    (c) Definitions.--Section 72(t) is amended by adding at the end 
thereof the following new paragraphs:
            ``(6) Qualified first-time homebuyer distributions.--For 
        purposes of paragraph (2)(D)(i)--
                    ``(A) In general.--The term `qualified first-time 
                homebuyer distribution' means any payment or 
                distribution received by an individual to the extent 
                such payment or distribution is used by the individual 
                before the close of the 60th day after the day on which 
                such payment or distribution is received to pay 
                qualified acquisition costs with respect to a principal 
                residence of a first-time homebuyer who is such 
                individual or the spouse, child, or grandchild of such 
                individual.
                    ``(B) Qualified acquisition costs.--For purposes of 
                this paragraph, the term `qualified acquisition costs' 
                means the costs of acquiring, constructing, or 
                reconstructing a residence. Such term includes any 
                usual or reasonable settlement, financing, or other 
                closing costs.
                    ``(C) First-time homebuyer; other definitions.--For 
                purposes of this paragraph--
                            ``(i) First-time homebuyer.--The term 
                        `first-time homebuyer' means any individual 
                        if--
                                    ``(I) such individual (and if 
                                married, such individual's spouse) had 
                                no present ownership interest in a 
                                principal residence during the 3-year 
                                period ending on the date of 
                                acquisition of the principal residence 
                                to which this paragraph applies, and
                                    ``(II) subsection (a)(6), (h), or 
                                (k) of section 1034 did not suspend the 
                                running of any period of time specified 
                                in section 1034 with respect to such 
                                individual on the day before the date 
                                the distribution is applied pursuant to 
                                subparagraph (A).
                            ``(ii) Principal residence.--The term 
                        `principal residence' has the same meaning as 
                        when used in section 1034.
                            ``(iii) Date of acquisition.--The term 
                        `date of acquisition' means the date--
                                    ``(I) on which a binding contract 
                                to acquire the principal residence to 
                                which subparagraph (A) applies is 
                                entered into, or
                                    ``(II) on which construction or 
                                reconstruction of such a principal 
                                residence is commenced.
                    ``(D) Special rule where delay in acquisition.--If 
                any distribution from any individual retirement plan 
                fails to meet the requirements of subparagraph (A) 
                solely by reason of a delay or cancellation of the 
                purchase or construction of the residence, the amount 
                of the distribution may be contributed to an individual 
                retirement plan as provided in section 408(d)(3)(A)(i) 
                (determined by substituting `120 days' for `60 days' in 
                such section), except that--
                            ``(i) section 408(d)(3)(B) shall not be 
                        applied to such contribution, and
                            ``(ii) such amount shall not be taken into 
                        account in determining whether section 
                        408(d)(3)(A)(i) applies to any other amount.
            ``(7) Qualified higher education expenses.--For purposes of 
        paragraph (2)(D)(ii)--
                    ``(A) In general.--The term `qualified higher 
                education expenses' means tuition, fees, books, 
                supplies, and equipment required for the enrollment or 
                attendance of--
                            ``(i) the taxpayer,
                            ``(ii) the taxpayer's spouse, or
                            ``(iii) the taxpayer's child (as defined in 
                        section 151(c)(3)) or grandchild,
                at an eligible educational institution (as defined in 
                section 135(c)(3)).
                    ``(B) Coordination with savings bond provisions.--
                The amount of qualified higher education expenses for 
                any taxable year shall be reduced by any amount 
                excludable from gross income under section 135.''
    (d) Penalty-Free Distributions for Certain Unemployed 
Individuals.--Paragraph (2) of section 72(t) is amended by adding at 
the end thereof the following new subparagraph:
            ``(E) Distributions to unemployed individuals.--A 
        distribution from an individual retirement plan (other than a 
        plan referred to in subclause (I) or (II) of paragraph 
        (6)(A)(iii)) to an individual after separation from employment, 
        if--
                    ``(i) such individual has received unemployment 
                compensation for 12 consecutive weeks under any Federal 
                or State unemployment compensation law by reason of 
                such separation, and
                    ``(ii) such distributions are made during any 
                taxable year during which such unemployment 
                compensation is paid or the succeeding taxable year.
        To the extent provided in regulations, a self-employed 
        individual shall be treated as meeting the requirements of 
        clause (i) if, under Federal or State unemployment 
        compensation, the individual would have received unemployment 
        compensation for 12 consecutive weeks but for the fact the 
        individual was self-employed.''
    (e) Special Rule for Certain Disaster Victims.--For purposes of 
section 72(t)(6) of the Internal Revenue Code of 1986, an individual 
whose principal residence was destroyed or substantially damaged by 
Hurricane Andrew, Hurricane Iniki, or Typhoon Omar shall be treated as 
a first-time homebuyer with respect to such residence if the individual 
rebuilds it or with respect to any other principal residence acquired 
to replace such residence.
    (f) Conforming Amendments.--
            (1) Section 401(k)(2)(B)(i) is amended by striking ``or'' 
        at the end of subclause (III), by striking ``and'' at the end 
        of subclause (IV) and inserting ``or'', and by inserting after 
        subclause (IV) the following new subclause:
                                    ``(V) the date on which qualified 
                                first-time homebuyer distributions (as 
                                defined in section 72(t)(6)) or 
                                distributions for qualified higher 
                                education expenses (as defined in 
                                section 72(t)(7)) are made, and''.
            (2) Section 403(b)(11) is amended by striking ``or'' at the 
        end of subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``, or'', and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) for qualified first-time homebuyer 
                distributions (as defined in section 72(t)(6)) or for 
                the payment of qualified higher education expenses (as 
                defined in section 72(t)(7)).''
    (g) Effective Date.--The amendments made by this section shall 
apply to payments and distributions after December 31, 1993.

SEC. 142. CONTRIBUTIONS MUST BE HELD AT LEAST 5 YEARS IN CERTAIN CASES.

    (a) In General.--Section 72(t), as amended by section 131(b), is 
amended by adding at the end thereof the following new paragraph:
            ``(9) Certain contributions must be held 5 years.--
                    ``(A) In general.--Paragraph (2)(A)(i) shall not 
                apply to any amount distributed out of an individual 
                retirement plan (other than an individual retirement 
                plus account) which is allocable to contributions made 
                to the plan during the 5-year period ending on the date 
                of such distribution (and earnings on such 
                contributions).
                    ``(B) Ordering rule.--For purposes of this 
                paragraph, distributions shall be treated as having 
                been made--
                            ``(i) first from the earliest contribution 
                        (and earnings allocable thereto) remaining in 
                        the account at the time of the distribution, 
                        and
                            ``(ii) then from other contributions (and 
                        earnings allocable thereto) in the order in 
                        which made.
                Earnings shall be allocated to contributions in such 
                manner as the Secretary may prescribe.
                    ``(C) Special rule for rollovers.--
                            ``(i) Pension plans.--Subparagraph (A) 
                        shall not apply to distributions out of an 
                        individual retirement plan which are allocable 
                        to rollover contributions to which section 
                        402(c), 403(a)(4), or 403(b)(8) applied.
                            ``(ii) Contribution period.--For purposes 
                        of subparagraph (A), amounts shall be treated 
                        as having been held by a plan during any period 
                        such contributions were held (or are treated as 
                        held under this clause) by any individual 
                        retirement plan from which transferred.
                    ``(D) Plus accounts.--For rules applicable to 
                individual retirement plus accounts under section 408A, 
                see paragraph (8).''
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions (and earnings allocable thereto) which are made after 
the date of the enactment of this Act.

  Subtitle D--Incentives for Private Businesses To Hire New Employees

SEC. 151. REFUNDABLE TAX CREDIT FOR HIRING NEW EMPLOYEES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
(relating to refundable credits) is amended by redesignating section 35 
as section 36 and by inserting after section 34 the following new 
section:

``SEC. 35. EMPLOYMENT TAXES ON NEW EMPLOYEES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this subtitle for the taxable year an amount 
equal to the employment taxes paid on the qualified wages of eligible 
new employees of the employer.
    ``(b) Eligible New Employees.--For purposes of this section--
            ``(1) In general.--The term `eligible new employee' means, 
        with respect to any employer, an employee who first begins work 
        for the employer during the period beginning July 1, 1993, and 
        ending June 30, 1994, and
            ``(2) Replacement employees not counted.--
                    ``(A) In general.--The number of employees treated 
                as eligible new employees for any payroll period shall 
                not exceed the excess (if any) of--
                            ``(i) the number of full-time employees of 
                        the employer during the payroll period, over
                            ``(ii) the average number of full-time 
                        employees of the employer during the 12-month 
                        period ending on June 30, 1993.
                    ``(B) Ordering rule.--If subparagraph (A) results 
                in a reduction in the number of employees who may be 
                treated as eligible new employees for any payroll 
                period, such reduction shall come from employees with 
                the highest wages for such period.
    ``(c) Employment Taxes; Wages.--For purposes of this section--
            ``(1) Employment taxes.--The term `employment taxes' 
        means--
                    ``(A) the amount of the taxes imposed by 
                subsections (a) and (b) of section 3111 (relating to 
                Social Security taxes),
                    ``(B) the amount of the taxes imposed by section 
                3221 (relating to tier 1 railroad retirement taxes), 
                and
                    ``(C) the tax imposed by section 3301 (relating to 
                unemployment taxes).
            ``(2) Qualified wages.--
                    ``(A) In general.--The term `qualified wages' 
                means, with respect to any employee, wages paid or 
                incurred by the employer which are attributable to 
                services rendered by the employee during the 6-month 
                period beginning with the day the employee begins work 
                for the employer. Such term shall not include wages 
                treated as qualified first-year wages under section 51.
                    ``(B) Wages.--The term `wages' means any wages with 
                respect to which employment taxes are required to be 
                paid.
    ``(d) Special Rules.--Rules similar to the rules of subsections 
(f), (h), (i), and (k) of section 51 and the rules of section 52 shall 
apply for purposes of this section.''
    (b) Coordination With Refund Provision.--For purposes of section 
1324(b)(2) of title 31 of the United States Code, section 35 of the 
Internal Revenue Code of 1986 shall be considered to be a credit 
provision of the Internal Revenue Code of 1954 enacted before January 
1, 1978.
    (c) Conforming Amendments.--(1) Subparagraph (A) of section 
51(i)(1) is amended by inserting ``, or, if the taxpayer is an entity 
other than a corporation, to any individual who owns, directly or 
indirectly, more than 50 percent of the capital and profits interests 
in the entity,'' after ``of the corporation''.
    (2) The table of sections for subpart C of part IV of subchapter A 
of chapter 1 is amended by striking the item relating to section 35 and 
inserting the following new items:

``Sec. 35. Employment taxes on new employees.
``Sec. 36. Overpayments of tax.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 152. REPEAL OF LUXURY EXCISE TAXES.

    (a) In General.--Chapter 31 (relating to retail excise taxes) is 
amended by striking subchapter A and by redesignating subchapters B and 
C as subchapters A and B, respectively.
    (b) Conforming Amendments.--
            (1) The material preceding paragraph (1) of section 4221(a) 
        is amended by striking ``subchapter A or C of chapter 31'' and 
        inserting ``section 4051''.
            (2) Subsection (a) of section 4221 is amended by striking 
        the last sentence.
            (3) Subsection (c) of section 4221 is amended by striking 
        ``section 4001(c), 4002(b), 4003(c), 4004(a), or 4053(a)(6)'' 
        and inserting ``section 4053(a)(6)''.
            (4) Paragraph (1) of section 4221(d) is amended by striking 
        ``taxes imposed by subchapter A or C of chapter 31'' and 
        inserting ``the tax imposed by section 4051''.
            (5) Subsection (d) of section 4222 is amended by striking 
        ``sections 4001(c), 4002(b), 4003(c), 4004(a), 4053(a)(6)'' and 
        inserting ``sections 4053(a)(6)''.
            (6) Section 4293 is amended by striking ``subchapter A of 
        chapter 31,''.
            (7) The table of subchapters for chapter 31 is amended to 
        read as follows:

                              ``Subchapter A. Special fuels.
                              ``Subchapter B. Heavy trucks and 
                                        trailers.''
    (c) Exemption From Luxury Excise Tax for Certain Equipment 
Installed on Passenger Vehicles for Use by Disabled Individuals.--
            (1) In general.--Paragraph (3) of section 4004(b) (relating 
        to separate purchase of article and parts and accessories 
        therefor), as in effect on the day before the date of the 
        enactment of this Act, is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (A),
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C),
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) the part or accessory is installed on a 
                passenger vehicle to enable or assist an individual 
                with a disability to operate the vehicle, or to enter 
                or exit the vehicle, by compensating for the effect of 
                such disability, or'', and
                    (D) by inserting after subparagraph (C) the 
                following flush sentence:
        ``The price of any part or accessory (and its installation) to 
        which paragraph (1) does not apply by reason of this paragraph 
        shall not be taken into account under paragraph (2)(A).''
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the amendments made by 
        section 11221(a) of the Omnibus Budget Reconciliation Act of 
        1990.
            (3) Period for filing claims.--If refund or credit of any 
        overpayment of tax resulting from the application of the 
        amendments made by this subsection is prevented at any time 
        before the close of the 1-year period beginning on the date of 
        the enactment of this Act by the operation of any law or rule 
        of law (including res judicata), refund or credit of such 
        overpayment (to the extent attributable to such amendments) 
        may, nevertheless, be made or allowed if claim therefore is 
        filed before the close of such 1-year period.
    (d) Effective Date.--Except as provided in subsection (c)(2), the 
amendments made by this section shall take effect on January 1, 1993.

SEC. 153. APPLICATION OF PASSIVE LOSS RULES TO RENTAL REAL ESTATE 
              ACTIVITIES.

    (a) Rental Real Estate Activities of Persons in Real Property 
Business Not Automatically Treated as Passive Activities.--Subsection 
(c) of section 469 (defining passive activity) is amended by adding at 
the end thereof the following new paragraph:
            ``(7) Special rules for taxpayers in real property 
        business.--
                    ``(A) In general.--If this paragraph applies to any 
                taxpayer for a taxable year--
                            ``(i) paragraph (2) shall not apply to any 
                        rental real estate activity of such taxpayer 
                        for such taxable year, and
                            ``(ii) this section shall be applied as if 
                        each interest of the taxpayer in rental real 
                        estate were a separate activity.
                Notwithstanding clause (ii), a taxpayer may elect to 
                treat all interests in rental real estate as 1 
                activity. Nothing in the preceding provisions of this 
                subparagraph shall be construed as affecting the 
                determination of whether the taxpayer materially 
                participates with respect to any interest in a limited 
                partnership as a limited partner.
                    ``(B) Taxpayers to whom paragraph applies.--This 
                paragraph shall apply to a taxpayer for a taxable year 
                if more than one-half of the personal services 
                performed in trades or businesses by the taxpayer 
                during such taxable year are performed in real property 
                trades or businesses in which the taxpayer materially 
                participates.
                    ``(C) Real property trade or business.--For 
                purposes of this paragraph, the term `real property 
                trade or business' means any real property development, 
                redevelopment, construction, reconstruction, 
                acquisition, conversion, rental, operation, management, 
                leasing, or brokerage trade or business.
                    ``(D) Special rules for subparagraph (b).--
                            ``(i) Closely held c corporations.--In the 
                        case of a closely held C corporation, the 
                        requirements of subparagraph (B) shall be 
                        treated as met for any taxable year if more 
                        than 50 percent of the gross receipts of such 
                        corporation for such taxable year are derived 
                        from real property trades or businesses in 
                        which the corporation materially participates.
                            ``(ii) Personal services as an employee.--
                        For purposes of subparagraph (B), personal 
                        services performed as an employee shall not be 
                        treated as performed in real property trades or 
                        businesses. The preceding sentence shall not 
                        apply if such employee is a 5-percent owner (as 
                        defined in section 416(i)(1)(B)) in the 
                        employer.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 469(c) is amended by striking 
        ``The'' and inserting ``Except as provided in paragraph (7), 
        the''.
            (2) Clause (iv) of section 469(i)(3)(E) is amended by 
        inserting ``or any loss allowable by reason of subsection 
        (c)(7)'' after ``loss''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1992.

                      TITLE II--DEFICIT REDUCTIONS

      Subtitle A--Extension of the Caps on Discretionary Spending

SEC. 201. EXTENSION OF THE CAPS.

    (a) Fiscal Year 1993.--For fiscal year 1993, the discretionary 
spending limits established in section 601(a)(2) of the Congressional 
Budget Act of 1974 as in effect on the date of enactment of this Act 
for the three categories for such fiscal year shall be reduced by an 
aggregate amount of $1,200,000,000, with each individual category being 
reduced by the amount of savings in such category resulting from the 
enactment of section 211.
    (b) Fiscal Years 1994 and 1995.--The overall discretionary spending 
limits established in section 601(a)(2) of the Congressional Budget Act 
of 1974 for fiscal years 1994 and 1995 as in effect on the date of 
enactment of this Act are reduced by--
            (1) $3,991,000,000 in outlays for fiscal year 1994; and
            (2) $7,135,000,000 in outlays for fiscal year 1995.
    (c) Fiscal Years 1996, 1997, and 1998.--
            (1) In general.--For fiscal years 1996, 1997, and 1998, 
        there shall be caps on discretionary spending as provided in 
        section 601(a)(2) of the Congressional Budget Act of 1974 for 
        fiscal years 1994 and 1995, subject to the provisions of 
        paragraphs (2) and (3).
            (2) Level of limits.--The discretionary limits on new 
        budget authority and outlays for fiscal years 1996, 1997, and 
        1998 shall be--
                    (A) the levels assumed in H. Con. Res. 64, agreed 
                to March 31, 1993, for such fiscal years, reduced by
                    (B)(i) $8,001,000,000, in outlays for fiscal year 
                1996;
                    (ii) $9,022,000,000, in outlays for fiscal year 
                1997; and
                    (iii) $9,843,000,000, in outlays for fiscal year 
                1998.
            (3) Extension of law.--The provisions of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 and the 
        Congressional Budget Act of 1974 relating to the enforcement of 
        the discretionary spending limit for fiscal years 1994 and 1995 
        are extended through fiscal year 1998 for the purpose of 
        enforcing the limits set forth in this subsection.

                       Subtitle B--Spending Cuts

SEC. 211. ADMINISTRATIVE EXPENSES.

    (a) In General.--Of the amounts provided in previous fiscal year 
1993 appropriations Acts and available budget authority under previous 
appropriations Acts, such amounts of budgetary resources are rescinded 
so as to equal $1,200,000,000 in outlays as provided in subsections (b) 
and (c).
    (b) OMB Reductions.--
            (1) In general.--The Director of the Office of Management 
        and Budget shall make uniform percentage reductions in budget 
        authority in Federal agency administrative expenses, except 
        that no reduction shall be made in current rates of pay under 
        current law.
            (2) No appropriations act.--To the extent budgetary 
        resources are not provided in appropriations Acts, the Director 
        shall make the same uniform percentage reduction as required in 
        paragraph (1) in Federal administrative expenses as determined 
        in section 256(h) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
    (c) Definition.--For the purposes of this section, Federal agency 
administrative expenses are defined as object classes 10 (excluding 
object classes 12.1, 12.2, and 13.0), 20 (excluding object class 23.1), 
and 30.

SEC. 212. PERMANENT ELIMINATION OF THE ALTERNATIVE-FORM-OF-ANNUITY 
              OPTION EXCEPT FOR INDIVIDUALS WITH A CRITICAL MEDICAL 
              CONDITION.

    (a) Civil Service Retirement System; Federal Employees' Retirement 
System.--Sections 8343a and 8420a of title 5, United States Code, are 
each amended--
            (1) in subsection (a) by striking ``an employee or Member 
        may,'' and inserting ``any employee or Member who has a life-
        threatening affliction or other critical medical condition 
        may,''; and
            (2) by striking subsection (f).
    (b) Foreign Service Retirement and Disability System.--Section 
807(e)(1) of the Foreign Service Act of 1980 (22 U.S.C. 4047(e)(1)) is 
amended by striking ``a participant may,'' and inserting ``any 
participant who has a life-threatening affliction or other critical 
medical condition may,''.
    (c) Central Intelligence Agency Retirement and Disability System.--
Section 294(a) of the Central Intelligence Agency Retirement Act (50 
U.S.C. 2143(a)), as set forth in section 802 of the CIARDS Technical 
Corrections Act of 1992 (Public Law 102-496; 106 Stat. 3196), is 
amended by striking ``a participant may,'' and inserting ``any 
participant who has a life-threatening affliction or other critical 
medical condition may,''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on January 1, 1994, and shall apply with respect to 
any annuity commencing on or after that date.

SEC. 213. GROUP HEALTH PLAN INFORMATION REPORTING.

    (a) In General.--Subsection (a) of section 6051 of the Internal 
Revenue Code of 1986 (relating to receipts for employees) is amended--
            (1) by striking ``and'' at the end of paragraph (8),
            (2) by striking the period at the end of paragraph (9) and 
        inserting ``, and'', and
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) whether a group health plan (as defined in section 
        6103(l)(12)(E)(ii) is available to the employee and the plan 
        coverage (single or family) elected by such employee (if 
        any).''.
    (b) Disclosure of Information.--Paragraph (12) of section 6103(l) 
of the Internal Revenue Code of 1986 (relating to disclosure of returns 
and return information for purposes other than tax administration) is 
amended--
            (1) by striking ``the Administrator of the Health Care 
        Financing Administration, disclose to the Administrator'' in 
        subparagraph (B) and inserting ``the applicable official, 
        disclose to such official'',
            (2) by adding at the end of subparagraph (B) the following 
        new clause:
                    ``(iv) With respect to each such medicare 
                beneficiary and spouse (if any), the group health plan 
                information required under section 6051(a)(10).'',
            (3) by striking the matter preceding clause (i) of 
        subparagraph (C) and inserting the following:
                    ``(C) Disclosure by official.--With respect to the 
                information disclosed under subparagraph (B), the 
                applicable official may disclose--'',
            (4) by striking ``as having received wages from the 
        employer'' in subparagraph (C)(i),
            (5) by striking ``such Administrator'' each place it 
        appears in subparagraph (C)(iii) and inserting ``such 
        official'',
            (6) by striking clause (iii) of subparagraph (E), and 
        inserting the following new clause:
                            ``(iii) Applicable official.--The term 
                        `applicable official' means--
                                    ``(I) the Administrator of the 
                                Health Care Financing Administration,
                                    ``(II) the Secretary of Defense,
                                    ``(III) the Secretary of Veterans 
                                Affairs, and
                                    ``(IV) the Director of the Office 
                                of Personnel Management.'',
            (7) by striking ``qualified employer'' each place it 
        appears and inserting ``employer'',
            (8) by striking subparagraph (F), and
            (9) by inserting ``and group health plan'' in the heading 
        thereof.
    (c) Data Bank.--Paragraph (5) of section 1862(b) of the Social 
Security Act (42 U.S.C. 1395y(b)) is amended by adding at the end 
thereof the following new subparagraph:
                    ``(F) Medicare secondary payer data bank.--The 
                Secretary shall collect and store in a data bank 
                established for purposes of this subsection the 
                information provided to the Secretary by entities as 
                described in this paragraph along with such further 
                information on medicare secondary payer situations as 
                the Secretary deems appropriate not later than July 1, 
                1994.''.
    (d) Conforming Amendments.--Paragraph (5) of section 1862(b) of the 
Social Security Act (42 U.S.C. 1395y(b)) is amended--
            (1) by striking ``a qualified employer (as defined in 
        section 6103(l)(12)(D)(iii) of such Code)'' in subparagraph 
        (C)(i) and inserting ``an employer'', and
            (2) by striking clause (iii) of subparagraph (C).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1992.

SEC. 214. ADDITIONAL SPENDING REDUCTIONS.

    It is the sense of the Congress that the reductions in 
discretionary spending as set forth in section 201 of this Act shall be 
achieved by--
            (1) reducing Federal aid for mass transit;
            (2) eliminating highway demonstration programs;
            (3) modifying the Service Contact Act by eliminating the 
        successorship provision;
            (4) reducing Federal employment by 150,000 employees;
            (5) reducing Federal Government administrative expenses;
            (6) modifying vacation leave for Federal managers;
            (7) reducing legislative branch administrative expenses;
            (8) eliminating the Interstate Commerce Commission;
            (9) closing and privatizing the Federal Helium Reserve;
            (10) reducing Legal Services funding by 50 per cent;
            (11) terminating the Copyright Royalty Commission; and
            (12) reducing funding for the European Bank for 
        Reconstruction and Development, the Special Defense Acquisition 
        Fund, and freezing funding for International Development 
        Authority.

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