[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2099 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2099

   To provide that cost-of-living adjustments to payments made under 
Federal law and to Federal tax benefits shall be determined using a new 
                              price index.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 1997

Mr. Smith of Michigan introduced the following bill; which was referred 
 to the Committee on Ways and Means, and in addition to the Committees 
 on Education and the Workforce, National Security, Government Reform 
 and Oversight, and Transportation and Infrastructure, for a period to 
      be susequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
   To provide that cost-of-living adjustments to payments made under 
Federal law and to Federal tax benefits shall be determined using a new 
                              price index.

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

SECTION 1. COST-OF-LIVING ADJUSTMENTS TO PAYMENTS MADE UNDER FEDERAL 
              LAW AND FEDERAL TAX BENEFITS DETERMINED USING PRICE 
              INDEX.

    (a) In General.--Notwithstanding any other provision of law, the 
Consumer Price Index for Government Use (CPI-G) established by 
subsection (c) shall be used to determine the amount of any cost-of-
living or similar adjustment--
            (1) under the Internal Revenue Code of 1986, and
            (2) to any payment referred to in subsection (b)) made 
        under Federal law which is otherwise subject to such an 
        adjustment using a price index which includes prices of tobacco 
        products or distilled spirits (or both).
    (b) Payments Affected.--The payments referred to in this subsection 
are:
            (1) Benefits payable under the Social Security Act.
            (2) Retirement benefits payable to former employees of the 
        United States or to former members of the Armed Forces of the 
        United States.
            (3) Payments on account of the death or disability of any 
        employee or former employee of the United States.
            (4) Tier 1 railroad retirement benefits.
    (c) Publication of New Index.--
            (1) In general.--Not later than August 1, 1998, the Bureau 
        of Labor Statistics shall publish a Consumer Price Index for 
        Government Use (CPI-G).
            (2) Index.--The Consumer Price Index for Government Use 
        (CPI-G) shall be based on the Consumer Price Index for All 
        Urban Consumers, except that it shall exclude prices for 
        tobacco products and distilled spirits.
    (d) Transition to New Index.--If, in determining an amount for any 
period, an adjustment takes into account periods before October 1, 
1998, and periods after September 30, 1998--
            (1) the Consumer Price Index for Government Use shall be 
        treated as being used for all periods, and
            (2) the amount being adjusted shall be treated as being the 
        amount which, had such Index been used for all prior periods, 
        would result in the amount in effect for the immediately 
        preceding period.
    (e) Effective Date.--The section shall apply to adjustments after 
September 30, 1997.
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