[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1524 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1524

 To repeal the retroactive application of the income, estate, and gift 
      tax rates made by the budget reconciliation act and reduce 
administrative expenses for agencies by $3,000,000,000 for each of the 
                   fiscal years 1994, 1995, and 1996.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 7 (legislative day, September 27), 1993

   Mrs. Hutchison (for herself, Mr. Brown, Mr. Burns, Mr. Coats, Mr. 
 Coverdell, Mr. Dole, Mr. Faircloth, Mr. Gramm, Mr. Hatch, Mr. Helms, 
  Mrs. Kassebaum, Mr. Kohl, Mr. Lieberman, Mr. Lott, Mr. McCain, Mr. 
   Nickles, Mr. Pressler, Mr. Shelby, Mr. Specter, Mr. Stevens, Mr. 
Thurmond, and Mr. Wallop) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To repeal the retroactive application of the income, estate, and gift 
      tax rates made by the budget reconciliation act and reduce 
administrative expenses for agencies by $3,000,000,000 for each of the 
                   fiscal years 1994, 1995, and 1996.

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

SECTION 1. REPEAL OF RETROACTIVE APPLICATION OF INCOME, ESTATE, AND 
              GIFT TAX RATE INCREASES.

    (a) Income Tax Rates.--
            (1) In general.--Section 1 of the Internal Revenue Code of 
        1986 (relating to tax imposed) is amended by adding at the end 
        the following new subsection:
    ``(i) Special Rules for Taxable Years Beginning in 1993.--In the 
case of taxable years beginning in calendar year 1993, each of the 
tables contained in subsections (a), (b), (c), (d), and (e) shall be 
applied--
            ``(1) by substituting `32.97 percent' for `36 percent',
            ``(2) by substituting `34.39 percent' for `39.6 percent', 
        and
            ``(3) by substituting for the dollar amount of tax in the 
        last rate bracket the dollar amount determined under such table 
        by making the substitution described in paragraph (1).''.
            (2) Conforming amendments.--
                    (A) Sections 531 and 541 of the Internal Revenue 
                Code of 1986 are each amended by inserting ``(34.39 
                percent in the case of taxable years beginning in 
                calendar year 1993)'' after ``39.6 percent''.
                    (B) Paragraph (1) of section 55(b) of such Code is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(C) Special rules for 1993.--In the case of any 
                taxable year beginning in the calendar year 1993, 
                subparagraph (A)(i) shall be applied by substituting--
                            ``(i) `24.79 percent' for `26 percent' in 
                        subclause (I), and
                            ``(ii) `25.58 percent' for `28 percent' in 
                        subclause (II).''
                    (C) Section 13201 of the Omnibus Budget 
                Reconciliation Act of 1993 is amended by striking 
                subsection (d).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1992.
    (b) Estate and Gift Tax Rates.--
            (1) In general.--Subsection (c) of section 13208 of the 
        Omnibus Budget Reconciliation Act of 1993 is amended by 
        striking ``December 31, 1992'' and inserting ``August 10, 
        1993''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the enactment of the 
        Omnibus Budget Reconciliation Act of 1993.

SEC. 2. REDUCTION IN ADMINISTRATIVE EXPENSES.

    (a) Budget Obligations.--
            (1) In general.--The amount obligated by all departments 
        and agencies for expenses during fiscal years 1994, 1995, and 
        1996, shall be reduced by an amount sufficient to result in a 
        reduction of $3,000,000,000 in outlays for expenses during each 
        of the fiscal years 1994, 1995, and 1996. The Director of the 
        Office of Management and Budget shall establish obligation 
        limits for each agency and department in order to carry out the 
        provisions of this section.
            (2) Discretionary spending limits.--The discretionary 
        spending limits for fiscal years 1994 through 1998 set forth in 
        section 601(a)(2) of the Congressional Budget Act of 1974 shall 
        each be reduced by $3,000,000,000 in fiscal year 1994, 
        $6,000,000,000 in fiscal year 1995, and $9,000,000,000 in each 
        of the fiscal years 1996, 1997, and 1998.
            (3) No negation of general authority of department head 
        without specific reference.--Notwithstanding any other 
        provision of this Act or any other Act (regardless of its date 
        of enactment) that purports to direct the head of a department 
        or agency to obligate an amount for salaries and expenses for 
        the purpose of obtaining a particular service or good or to 
        prohibit the head of a department or agency from obligating 
        such an amount for any particular service or good, that law 
        shall not be construed to impair or otherwise affect the duty 
        and the discretion of the head of a department or agency to 
        make determinations concerning which particular services of 
        persons and which particular goods will be obligated for in the 
        best interest of performing all of the duties assigned to the 
        department or agency, unless that provision--
                    (A) makes specific reference to this paragraph; and
                    (B) states that it is the intent of Congress in 
                that provision to negate the duty and discretion of the 
                head of that department or agency so to make such 
                determinations.
    (b) Definition.--For purposes of this section the term ``expenses'' 
means the object classes identified by the Office of Management and 
Budget in Object Classes 21-26 as follows:
            (1) 21.0: Travel and Transportation of Persons.
            (2) 22.0: Transportation of Things.
            (3) 23.2: Rental Payments to Others.
            (4) 23.3: Communications, Utilities, and Misc.
            (5) 24.0: Printing and Reproduction.
            (6) 25.1: Consulting Services.
            (7) 25.2: Other Services.
            (8) 26.0: Supplies and Materials.
Such term shall not include the expenses of the Department of Defense.

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