[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1160 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1160

 To amend the Internal Revenue Code of 1986 to provide that new income 
tax deductions, credits, exclusions and other benefits shall be allowed 
  only if the projected Federal budget deficit meets certain deficit 
                                targets.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 1995

 Mr. Browder introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that new income 
tax deductions, credits, exclusions and other benefits shall be allowed 
  only if the projected Federal budget deficit meets certain deficit 
                                targets.

    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 ``Balanced Budget Dividend Act''.

SEC. 2. NEW INCOME TAX BENEFITS TO BE ALLOWED ONLY IF FEDERAL BUDGET 
              DEFICIT MEETS CERTAIN TARGETS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

  ``Subpart H--New Income Tax Benefits To Be Allowed Only If Federal 
                  Budget Deficit Meets Certain Targets

                              ``Sec. 54. New income tax benefits to be 
                                        allowed only if Federal budget 
                                        deficit meets certain targets.

``SEC. 54. NEW INCOME TAX BENEFITS TO BE ALLOWED ONLY IF FEDERAL BUDGET 
              DEFICIT MEETS CERTAIN TARGETS.

    ``(a) In General.--No new income tax benefit shall be allowed for 
any taxable year if, for the applicable Federal fiscal year, there is a 
deficit reduction shortfall.
    ``(b) Deficit Reduction Shortfall.--For purposes of this section--
            ``(1) In general.--There is a deficit reduction shortfall 
        for any fiscal year if the projected deficit for such fiscal 
        year exceeds the target deficit for such fiscal year.
            ``(2) Projected deficit.--The term `projected deficit' 
        means, with respect to any fiscal year, the amount specified in 
        the first concurrent resolution on the budget for such year as 
        the projected Federal budget deficit for such year.
            ``(3) Target deficit.--
                    ``(A) In general.--The term `target deficit' means, 
                with respect to any fiscal year, the amount specified 
                in the first concurrent resolution on the budget for 
                such year to be the target deficit for such year in 
                order to achieve a balanced Federal budget.
                    ``(B) Target to be specified.--There is a deficit 
                reduction shortfall for any fiscal year if--
                            ``(i) there is no target deficit for such 
                        fiscal year,
                            ``(ii) the target deficit is not less than 
                        the target deficit for the preceding fiscal 
                        year, or
                            ``(iii) the 5-year deficit projections in 
                        the resolution referred to in subparagraph (A) 
                        do not show steady progress toward elimination 
                        of the Federal budget deficit.
                In the case in which the preceding fiscal year referred 
                to in clause (ii) is fiscal year 1995, the target 
                deficit for such year shall be treated as being the 
                projected deficit for such year.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) New income tax benefit.--The term `new income tax 
        benefit' means any credit, deduction, exclusion, or other 
        benefit under this chapter--
                    ``(A) which is enacted after December 31, 1994, and
                    ``(B) which (without regard to this section) would 
                result in a reduction in revenues received in the 
                Treasury under this chapter.
        Such term includes the portion of any benefit enacted on or 
        before such date to the extent that the reduction referred to 
        in subparagraph (B) is attributable to amendments made after 
        such date.
            ``(2) Applicable federal fiscal year.--The term `applicable 
        Federal fiscal year' means, with respect to any taxable year, 
        the fiscal year ending during the calendar year in which or 
        with which such taxable year ends.
            ``(3) Concurrent resolution on the budget.--The term 
        `concurrent resolution on the budget' has the meaning given to 
        such term by section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974.
    ``(d) Termination.--This section shall not apply with respect to 
any fiscal year after the first fiscal year for which the Federal 
budget is in balance.''
    (b) Clerical Amendment.--The table of subparts for such part IV is 
amended by adding at the end the following new item:

                              ``Subpart H. New income tax benefits to 
                                        be allowed only if Federal 
                                        budget deficit meets certain 
                                        targets.''
    (c) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after September 30, 1995.
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