[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 126 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 126

To amend the Internal Revenue Code of 1986 to suspend future reductions 
  of the highest income tax rate if there exists a Federal on-budget 
                                deficit.


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                   IN THE SENATE OF THE UNITED STATES

                            January 9, 2003

 Mrs. Feinstein (for herself and Mr. Chafee) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to suspend future reductions 
  of the highest income tax rate if there exists a Federal on-budget 
                                deficit.

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

SECTION 1. SUSPENSION OF CERTAIN INCOME TAX RATE REDUCTIONS IN CASE OF 
              FEDERAL ON-BUDGET DEFICIT.

    Section 1(i) of the Internal Revenue Code of 1986 (relating to rate 
reductions after 2000) is amended by redesignating paragraph (3) as 
paragraph (4) and by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Suspension of highest rate reductions in case of 
        federal on-budget deficit.--Notwithstanding the table contained 
        in paragraph (2)--
                    ``(A) Initial determination.--If the Secretary 
                determines on October 1, 2003, that there exists a 
                Federal on-budget deficit for the fiscal year beginning 
                on such date, the reduction in the highest rate under 
                such table to 37.6 percent shall be suspended until the 
                beginning of the first calendar year following the 
                first succeeding October 1 on which it is determined 
                that such a deficit does not exist.
                    ``(B) Subsequent determination.--On October 1 of 
                the year following the first calendar year described in 
                subparagraph (A), if the Secretary determines that a 
                Federal on-budget deficit exists for the fiscal year 
                beginning on such date, the reduction in the highest 
                rate under such table to 35.0 percent shall be 
                suspended until the beginning of the first calendar 
                year following the first succeeding October 1 on which 
                it is determined that such a deficit does not exist.
                    ``(C) Data for determination.--Any determination by 
                the Secretary under this paragraph with respect to any 
                fiscal year shall be based on the most recent budgetary 
                data for such fiscal year submitted to Congress under 
                section 1106 of title 31, United States Code.''.
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