[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 392 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 392

   To provide for economic growth by reducing income taxes for most 
 Americans, by encouraging the purchase of American-made products, and 
 by extending transportation-related spending, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 1997

 Mr. Andrews introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
  Transportation and Infrastructure, Government Reform and Oversight, 
Banking and Financial Services, and Appropriations, for a period to be 
subsequently 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 for economic growth by reducing income taxes for most 
 Americans, by encouraging the purchase of American-made products, and 
 by extending transportation-related 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 ``Economic Growth Incentive Act of 
1997''.

              TITLE I--REDUCTION IN INDIVIDUAL INCOME TAXES

SEC. 101. 5-PERCENT DECREASE IN INDIVIDUAL INCOME TAXES FOR MOST 
              TAXPAYERS.

    (a) Rate Reductions.--Subsection (f) of section 1 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Rate reductions.--In prescribing the tables under 
        paragraph (1) which apply with respect to taxable years 
        beginning in a calendar year after 1997--
                    ``(A) `14.25%' shall be substituted for `15%',
                    ``(B) `26.6%' shall be substituted for `28%',
                    ``(C) `29.45%' shall be substituted for `31%', and
                    ``(D) `34.2%' shall be substituted for `36%'.''
    (b) Technical Amendments.--
            (1) Subparagraph (B) of section 1(f)(2) of such Code is 
        amended by inserting ``except as provided in paragraph (8),'' 
        before ``by not changing''.
            (2) Subparagraph (C) of section 1(f)(2) of such Code is 
        amended by inserting ``and the reductions under paragraph (8) 
        in the rates of tax'' before the period.
            (3) The heading for subsection (f) of section 1 of such 
        Code is amended by inserting ``Rate Reductions;'' before 
        ``Adjustments''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

       TITLE II--INCENTIVE FOR PURCHASE OF AMERICAN-MADE PROPERTY

SEC. 201. DEDUCTION FOR GENERAL SALES TAXES ON AMERICAN-MADE TANGIBLE 
              PERSONAL PROPERTY.

    (a) In General.--Subsection (a) of section 164 of the Internal 
Revenue Code of 1986 (relating to deduction for taxes) is amended by 
inserting after paragraph (5) the following new paragraph:
            ``(6) State and local general sales taxes imposed in 
        respect of qualified sales at retail of American-made 
        property.''
    (b) Definitions.--Subsection (b) of section 164 of such Code is 
amended by adding at the end thereof the following new paragraph:
            ``(5) Definitions relating to general sales taxes.--For 
        purposes of subsection (a)(6)--
                    ``(A) Qualified sales.--The term `qualified sale' 
                means any sale of property if the price (including 
                taxes and shipping (if any)) paid by the taxpayer for 
                such property and all other American-made property 
                purchased with such property in the same transaction 
                exceeds $500.
                    ``(B) American-made property.--The term `American-
                made property' means tangible personal property more 
                than 50 percent of the cost of which is attributable to 
                value added in the United States.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

               TITLE III--SURFACE TRANSPORTATION PROGRAMS

SEC. 301. OBLIGATION CEILING.

    Section 1002 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 104 note; 105 Stat. 1916-1918) is repealed.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR HIGHWAY PROGRAMS.

    Section 1003(a) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 1918-1922) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, 1999, and 2000'';
            (2) in paragraph (2)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, 1999, and 2000'';
            (3) in paragraph (3)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, 1999, and 2000'';
            (4) in paragraph (4)--
                    (A) by striking ``and'' the second place it 
                appears; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, 1999, and 2000'';
            (5) in paragraph (5)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, 1999, and 2000'';
            (6) in paragraph (6)(A) by striking ``and 1997'' and 
        inserting ``1997, 1998, 1999, and 2000'';
            (7) in paragraph (6)(B) by striking ``and 1997'' and 
        inserting ``, 1997, 1998, 1999, and 2000'';
            (8) in paragraph (6)(C) by striking ``and 1997'' and 
        inserting ``, 1997, 1998, 1999, and 2000'';
            (9) in paragraph (7) by striking ``and 1997'' and inserting 
        ``1997, 1998, 1999, and 2000''; and
            (10) in paragraph (8) by striking ``and 1997'' and 
        inserting ``1997, 1998, 1999, and 2000''.

SEC. 303. DONOR STATE BONUS AMOUNTS.

    Section 1013(c)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 157 note; 105 Stat. 1940) is amended 
by adding at the end the following new subparagraphs:
                    ``(G) For fiscal year 1998 $514,000,000.
                    ``(H) For fiscal year 1999 $514,000,000.
                    ``(I) For fiscal year 2000 $514,000,000.''.

SEC. 304. APPORTIONMENT ADJUSTMENTS.

    (a) Hold Harmless.--Section 1015(a)(1) of the Intermodal Surface 
Transportation Efficiency Act of 1991 (23 U.S.C. 104 note; 105 Stat. 
1943) is amended by striking ``1997'' and inserting ``2000''.
    (b) 90-Percent of Payment Adjustments.--Section 1015(b)(1) of such 
Act is amended by striking ``1997'' and inserting ``2000''.
    (c) Authorization of Appropriations.--Section 1015(e) of such Act 
is amended by striking ``1997'' and inserting ``2000''.

SEC. 305. SET-ASIDE FOR 4R PROJECTS.

    Section 118(c)(2)(A) of title 23, United States Code, is amended by 
striking ``fiscal year 1997'' and inserting ``each of fiscal years 
1997, 1998, 1999, and 2000''.

SEC. 306. DISCRETIONARY BRIDGE PROGRAM.

    Section 144(g)(1) of title 23, United States Code, is amended by 
striking ``and 1997'' each place it appears and inserting ``1997, 1998, 
1999, and 2000''.

SEC. 307. NATIONAL HIGH-SPEED GROUND TRANSPORTATION PROGRAMS.

    Section 1036(d)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (105 Stat. 1986) is amended--
            (1) in subparagraph (A) by striking ``fiscal year 1995'' 
        and inserting ``each of fiscal years 1995, 1998, 1999, and 
        2000''; and
            (2) in subparagraph (B) by striking ``and 1996'' and 
        inserting ``1996, 1998, 1999, and 2000''.

SEC. 308. HIGHWAY TIMBER BRIDGE PROGRAM.

    Section 1039(e) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 144 note; 105 Stat. 1991) is amended by striking 
``and 1997'' and inserting ``1997, 1998, 1999, and 2000''.

SEC. 309. HIGHWAY USE TAX EVASION PROJECTS.

    Section 1040(f)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992-1993) is 
amended by striking ``and 1997'' and inserting ``1997, 1998, 1999, and 
2000''.

SEC. 310. SCENIC BYWAYS PROGRAM.

    Section 1047(d) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1998) is amended by striking 
``and 1997'' and inserting ``1997, 1998, 1999, and 2000''.

SEC. 311. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.

    Section 1064(c) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 129 note; 105 Stat. 2005) is amended by striking 
``fiscal year 1997'' and inserting ``each of fiscal years 1997, 1998, 
1999, and 2000''.

SEC. 312. HIGHWAY SAFETY AUTHORIZATION OF APPROPRIATIONS.

    Section 2005 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2079) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and'' the second place it 
                appears; and
                    (B) by inserting after ``1997'' the following: 
                ``and, $171,000,000 for each of fiscal years 1998, 
                1999, and 2000''; and
            (2) in paragraph (2) by striking ``1997'' and inserting 
        ``2000''.

SEC. 313. HIGHWAY SAFETY OBLIGATION CEILINGS.

    Section 2009 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2080) is amended by striking subsections (a) and 
(b) and inserting the following:
    ``Sums authorized to be appropriated by this title and the 
amendments made by this title shall not be subject to any obligation 
limitation.''.

SEC. 314. FEDERAL TRANSIT ACT AUTHORIZATIONS.

    Section 5338 of title 49, United States Code, is amended--
            (1) in subsection (a)(1)(E) by striking ``the fiscal year 
        ending September 30, 1997'' and inserting ``each of fiscal 
        years 1997, 1998, 1999, and 2000''; and
            (2) in subsection (b)(1)(E) by striking ``the fiscal year 
        ending September 30, 1997'' and inserting ``each of fiscal 
        years 1997, 1998, 1999, and 2000''.

SEC. 315. REDUCTION IN FEDERAL TRANSIT ACT AUTHORIZATIONS FOR BUDGET 
              COMPLIANCE.

    Section 3038 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2138) is repealed.

SEC. 316. MOTOR CARRIER SAFETY GRANT PROGRAM.

    Section 31104(a)(5) of title 49, United States Code, is amended by 
striking ``the fiscal year ending September 30, 1997'' and inserting 
``each of fiscal years 1997, 1998, 1999, and 2000''.

SEC. 317. 3-YEAR EXTENSION OF HIGHWAY TRUST FUND EXPENDITURES.

    Subsections (c)(1) and (d)(3) of section 9503 of the Internal 
Revenue Code of 1986, as amended by this Act, are each amended by 
striking ``1997'' and inserting ``2000''.

                  TITLE IV--RELIEF FROM CREDIT CRUNCH

SEC. 401. LOOSENING OF REQUIREMENTS ON LOAN LOSS RESERVES ENCOURAGED.

    (a) Findings.--The Congress hereby finds that--
            (1) the economy of the United States has been in a 
        sustained period of slow growth;
            (2) credit for commercial and consumer loans and leases has 
        become more difficult to obtain over the past three years, 
        resulting in a ``credit crunch'';
            (3) the banking industry has adopted a cautious credit 
        policy in response to the state of the economy and the problems 
        experienced by the savings and loan industry;
            (4) the Federal Reserve has lowered its reserve 
        requirements on member banks for both checking and savings 
        deposits over the past two years in an effort to stimulate the 
        economy, with only moderate success; and
            (5) the loosening of the requirements on loan loss reserves 
        by State banking authorities and the appropriate Federal 
        banking agencies, as that term is defined in section 3(q) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), might 
        help stimulate the economy.
    (b) Declaration.--It is the sense of the Congress that--
            (1) the current ``credit crunch'' should be eased by making 
        it easier for businesses and individuals to obtain loans and 
        leases; and
            (2) State banking authorities and the appropriate Federal 
        banking agencies, as that term is defined in section 3(q) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), should 
        more sensibly apply the requirements on loan loss reserves so 
        as not to punish or restrain responsible borrowers.

                   TITLE V--CAP ON FEDERAL EMPLOYMENT

SEC. 501. CAP ON FEDERAL EMPLOYMENT.

    (a) Employment Cap.--Notwithstanding any other provision of law, 
the total number of individuals employed by the Federal Government may 
not exceed the number of individuals employed by the Federal Government 
on the date of the enactment of this Act.
    (b) Rescission of Appropriations.--Notwithstanding any other 
provision of law, there are hereby rescinded all unobligated amounts 
that were appropriated before the date of the enactment of this Act to 
pay salary, wages, or benefits for a position in the employment of the 
Federal Government that is not filled on that date.

            TITLE VI--REDUCTION IN FEDERAL OVERHEAD EXPENSES

SEC. 601. REDUCTION OF AMOUNTS AVAILABLE TO FEDERAL AGENCIES FOR PAYING 
              OVERHEAD EXPENSES.

    (a) Rescission of Appropriations.--Notwithstanding any other 
provision of law, there is hereby rescinded an amount equal to 10 
percent of all unobligated amounts that were appropriated before the 
date of the enactment of this Act to pay overhead expenses of any 
Federal agency.
    (b) Reduction in Authorizations.--The amount authorized to be 
appropriated for any fiscal year to pay overhead expenses of any 
Federal agency is hereby reduced by 10 percent.
    (c) Overhead Expenses Defined.--For purposes of this section, the 
term ``overhead expenses'' means any expense incurred by a Federal 
agency, except--
            (1) the payment of salaries and wages of employees of the 
        agency; and
            (2) direct spending (as that term is defined in section 250 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985).
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