[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 927 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 927

   To provide for a tax reduction in the case of low economic growth.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2001

Mr. Obey (for himself, Mr. Moran of Virginia, and Mr. Frank) introduced 
  the following bill; which was referred to the Committee on Ways and 
Means, and in addition to the Committee on the Budget, 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 a tax reduction in the case of low economic growth.

    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 ``Standby Authority to Fight Economic 
Recession Tax Cut Act of 2001''.

SEC. 2. TAX REDUCTION IN THE EVENT OF LOW GROWTH.

    (a) Low-Growth Report.--
            (1) In general.--At any time, the Director of the Office of 
        Management and Budget (hereafter in this section referred to as 
        the ``Director'') may notify the President and the Congress if 
        the Director--
                    (A) determines that paragraph (2) was met for the 2 
                quarters preceding the quarter during which the 
                notification is given, or
                    (B)(i) projects that paragraph (2) will be met for 
                the quarter during which the notification is given, and
                    (ii) determines that such paragraph was met for the 
                preceding quarter.
            (2) Requirement.--This paragraph is met if either--
                    (A) economic growth as measured by the change in 
                real Gross Domestic Product (GDP) at an annual rate is 
                estimated to be less than 1.5 percent, or
                    (B) there is a decrease in the number of employed 
                individuals.
        Nothing in this section shall be construed as preventing the 
        Director from taking into account estimates which are subject 
        to revision.
    (b) Presidential Authorization of Temporary Tax Reductions.--
            (1) Presidential declaration.--After notification under 
        subsection (a), the President may issue a declaration that 
        temporary income tax reductions are required for a specified 
        calendar year to provide a quick and necessary fiscal stimulus 
        to the economy. Any such declaration shall be transmitted to 
        the Congress.
            (2) Temporary tax modifications.--If the President 
        transmits a declaration under paragraph (1) to the Congress, 
        effective for taxable years beginning in the calendar year 
        specified in such declaration--
                    (A) the rates applicable to the first income 
                bracket in the tax tables contained in section 1 of the 
                Internal Revenue Code of 1986 shall be reduced by a 
                number of percentage points (not to exceed 3 percentage 
                points) specified in such declaration,
                    (B) the amounts set fourth as tax in such tables 
                shall be adjusted to reflect such rate reduction, and
                    (C) the withholding tables or procedures prescribed 
                under section 3402(a) of such Code shall be modified as 
                specified in such declaration (including having 
                different withholding rates apply to portions of a 
                calendar year).

SEC. 3. TREATMENT UNDER PAY-AS-YOU-GO PROCEDURES.

    Any reduction or increase in receipts resulting from section 2 of 
this Act shall not be considered for any purpose under the Balanced 
Budget and Emergency Deficit Control Act of 1985.
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