[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3482 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3482

              To cut, cap, and balance the Federal budget.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2012

Mr. Lee (for himself, Mr. Paul, Mr. DeMint, Mr. Coburn, Mr. Blunt, Mr. 
Risch, Mr. Toomey, Mr. Graham, Mr. Isakson, Mr. Vitter, Mr. Rubio, Mr. 
    Cornyn, Mr. Crapo, Mr. Johnson of Wisconsin, Mr. Alexander, Mr. 
Chambliss, Mr. Barrasso, Mr. Hatch, Mr. Thune, Mr. Boozman, Mr. Inhofe, 
 Mr. Wicker, and Mr. Portman) introduced the following bill; which was 
         read twice and referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL


 
              To cut, cap, and balance the Federal budget.

    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 ``Cut, Cap, and Balance Act of 2012''.

                              TITLE I--CUT

SEC. 101. REDUCTION OF 2013 SPENDING.

    For purposes of section 302(a) of the Congressional Budget Act of 
1974, the estimated allocation of the appropriate levels of budget 
totals for fiscal year 2013 for the Senate Committee on Appropriations 
shall be--
            (1) $985,000,000,000 in total new budget authority; and
            (2) $1,118,000,000,000 in total budget outlays.

                             TITLE II--CAP

SEC. 201. SENSE OF CONGRESS.

    It is the sense of Congress that Congress should enact 
comprehensive tax reform that lowers marginal rates, broadens the base, 
and simplifies the tax code to increase economic growth while 
generating revenues that are in line with the historical average of 18% 
of GDP.

SEC. 202. MODIFICATION OF THE CONGRESSIONAL BUDGET ACT.

    Title III of the Congressional Budget Act of 1974 is amended by 
inserting at the end the following:

``SEC. 316. DISCRETIONARY SPENDING LIMITS.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause the discretionary spending limits as set forth in this section to 
be exceeded.
    ``(b) Limits.--In this section, the term `discretionary spending 
limits' has the following meaning:
            ``(1) For fiscal year 2013--
                    ``(A) for the defense category (budget function 
                050), $546,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $439,000,000,000 in budget authority.
            ``(2) For fiscal year 2014--
                    ``(A) for the defense category (budget function 
                050), $556,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $440,000,000,000 in budget authority.
            ``(3) For fiscal year 2015--
                    ``(A) for the defense category (budget function 
                050), $566,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $439,000,000,000 in budget authority.
            ``(4) For fiscal year 2016--
                    ``(A) for the defense category (budget function 
                050), $577,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $439,000,000,000 in budget authority.
            ``(5) For fiscal year 2017--
                    ``(A) for the defense category (budget function 
                050), $590,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $441,000,000,000 in budget authority.
            ``(6) For fiscal year 2018--
                    ``(A) for the defense category (budget function 
                050), $603,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $440,000,000,000 in budget authority.
            ``(7) For fiscal year 2019--
                    ``(A) for the defense category (budget function 
                050), $616,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $440,000,000,000 in budget authority.
            ``(8) For fiscal year 2020--
                    ``(A) for the defense category (budget function 
                050), $630,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $440,000,000,000 in budget authority.
            ``(9) For fiscal year 2021--
                    ``(A) for the defense category (budget function 
                050), $644,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $442,000,000,000 in budget authority.
            ``(10) For fiscal year 2022--
                    ``(A) for the defense category (budget function 
                050), $654,000,000,000 in budget authority; and
                    ``(B) for the non-defense category, 
                $449,000,000,000 in budget authority.
    ``(c) Adjustments.--After the reporting of a bill or joint 
resolution relating to oversees deployments described in subsection 
(d), or the offering of an amendment thereto or the submission of a 
conference report thereon--
            ``(1) the Chairman of the Senate Committee on the budget 
        may adjust the discretionary spending limits provided in this 
        section, the budgetary aggregates in the concurrent resolution 
        on the budget most recently adopted by the Senate and the House 
        of Representatives, and allocations pursuant to section 302(a) 
        of the Congressional Budget Act of 1974, by the amount of new 
        budget authority in that measure for that purpose and the 
        outlays flowing therefrom; and
            ``(2) following any adjustment under paragraph (1), the 
        Senate Committee on Appropriations may report appropriately 
        revised suballocations pursuant to section 302(b) of the 
        Congressional Budget Act of 1974 to carry out this subsection.
    ``(d) Overseas Deployments.--If a bill or joint resolution is 
reported making appropriations for fiscal year 2013 or 2014 that 
provides funding for overseas deployments and activities undertaken as 
a result of a declaration of war or Congressional authorization of 
force, the allowable adjustments provided for in subsection (c) shall 
not exceed the following:
            ``(1) For fiscal year 2013, $90,000,000,000 in budget 
        authority.
            ``(2) For fiscal year 2014, $20,000,000,000 in budget 
        authority.
    ``(e) Point of Order in the Senate.--
            ``(1) Waiver.--The provisions of this section shall be 
        waived or suspended in the Senate only--
                    ``(A) by the affirmative vote of two-thirds of the 
                Members, duly chosen and sworn; or
                    ``(B) in the case of defense budget authority, if 
                Congress declares war or authorizes the use of force.
            ``(2) Appeal.--Appeals in the Senate from decisions of the 
        Chair relating to any provision of this section shall be 
        limited to one hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the measure. An 
        affirmative vote of two-thirds of the Members of the Senate, 
        duly chosen and sworn, shall be required to sustain an appeal 
        of the ruling of the Chair on a point of order raised under 
        this section.

``SEC. 317. CERTAIN MANDATORY SPENDING LIMITS.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause total on-budget mandatory spending, except as excluded in 
subsection (b), to exceed the limits specified in subsection (c).
    ``(b) Exempt From Specified Limits.--The mandatory components of 
the following functions are exempt from the limits specified in 
subsection (c):
            ``(1) Social Security, function 650.
            ``(2) Medicare, function 570.
            ``(3) Veterans Benefits and Services, function 700.
            ``(4) Net Interest, function 900.
    ``(c) Limits on Remaining Mandatory Spending.--The total combined 
budget authority for all mandatory spending not exempted in subsection 
(b) shall not exceed the following limits:
            ``(1) For fiscal year 2013, $759,000,000,000 in budget 
        authority.
            ``(2) For fiscal year 2014, $697,000,000,000 in budget 
        authority.
            ``(3) For fiscal year 2015, $662,000,000,000 in budget 
        authority.
            ``(4) For fiscal year 2016, $641,000,000,000 in budget 
        authority.
            ``(5) For fiscal year 2017, $628,000,000,000 in budget 
        authority.
            ``(6) For fiscal year 2018, $629,000,000,000 in budget 
        authority.
            ``(7) For fiscal year 2019, $642,000,000,000 in budget 
        authority.
            ``(8) For fiscal year 2020, $653,000,000,000 in budget 
        authority.
            ``(9) For fiscal year 2021, $661,000,000,000 in budget 
        authority.
            ``(10) For fiscal year 2022, $688,000,000,000 in budget 
        authority.
    ``(d) Point of Order in the Senate.--
            ``(1) Waiver.--The provisions of this section shall be 
        waived or suspended in the Senate only by the affirmative vote 
        of two-thirds of the Members, duly chosen and sworn.
            ``(2) Appeal.--Appeals in the Senate from decisions of the 
        Chair relating to any provision of this section shall be 
        limited to one hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the measure. An 
        affirmative vote of two-thirds of the Members of the Senate, 
        duly chosen and sworn, shall be required to sustain an appeal 
        of the ruling of the Chair on a point of order raised under 
        this section.

``SEC. 318. LIMITS FOR SOCIAL SECURITY.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause total mandatory spending for Social Security (function 650) to 
exceed the limits specified in subsection (b).
    ``(b) Limits.--
            ``(1) In general.--For purposes of this section the limits 
        are as follows:
                    ``(A) For fiscal year 2013, total outlays shall be 
                $812,950,000,000.
                    ``(B) For fiscal year 2014, total outlays shall be 
                $855,960,000,000.
                    ``(C) For fiscal year 2015, total outlays shall be 
                $900,380,000,000.
                    ``(D) For fiscal year 2016, total outlays shall be 
                $948,300,000,000.
                    ``(E) For fiscal year 2017, total outlays shall be 
                $1,002,220,000,000.
                    ``(F) For fiscal year 2018, total outlays shall be 
                $1,060,820,000,000.
                    ``(G) For fiscal year 2019, total outlays shall be 
                $1,124,720,000,000.
                    ``(H) For fiscal year 2020, total outlays shall be 
                $1,193,610,000,000.
                    ``(I) For fiscal year 2021, total outlays shall be 
                $1,264,910,000,000.
                    ``(J) For fiscal year 2022, total outlays shall be 
                $1,339,660,000,000.
            ``(2) Exception.--If the Congressional Budget Office 
        determines that projected outlays are expected to exceed the 
        limits specified above due to changes in cost-of-living 
        adjustments contained in present law subsection (c) shall not 
        apply.
    ``(c) Point of Order in the Senate.--
            ``(1) Waiver.--The provisions of this section shall be 
        waived or suspended in the Senate only by the affirmative vote 
        of two-thirds of the Members, duly chosen and sworn.
            ``(2) Appeal.--Appeals in the Senate from decisions of the 
        Chair relating to any provision of this section shall be 
        limited to one hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the measure. An 
        affirmative vote of two-thirds of the Members of the Senate, 
        duly chosen and sworn, shall be required to sustain an appeal 
        of the ruling of the Chair on a point of order raised under 
        this section.

``SEC. 319. LIMITS FOR MEDICARE.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause total mandatory spending for Medicare (function 570) to exceed 
the limits specified in subsection (b).
    ``(b) Limits.--For purposes of this section the limits are as 
follows:
            ``(1) For fiscal year 2013, total outlays shall be 
        $515,440,000,000.
            ``(2) For fiscal year 2014, total outlays shall be 
        $539,840,000,000.
            ``(3) For fiscal year 2015, total outlays shall be 
        $564,400,000,000.
            ``(4) For fiscal year 2016, total outlays shall be 
        $613,340,000,000.
            ``(5) For fiscal year 2017, total outlays shall be 
        $630,980,000,000.
            ``(6) For fiscal year 2018, total outlays shall be 
        $654,100,000,000.
            ``(7) For fiscal year 2019, total outlays shall be 
        $717,110,000,000.
            ``(8) For fiscal year 2020, total outlays shall be 
        $769,480,000,000.
            ``(9) For fiscal year 2021, total outlays shall be 
        $822,530,000,000.
            ``(10) For fiscal year 2022, total outlays shall be 
        $910,200,000,000.
    ``(c) Point of Order in the Senate.--
            ``(1) Waiver.--The provisions of this section shall be 
        waived or suspended in the Senate only by the affirmative vote 
        of two-thirds of the Members, duly chosen and sworn.
            ``(2) Appeal.--Appeals in the Senate from decisions of the 
        Chair relating to any provision of this section shall be 
        limited to one hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the measure. An 
        affirmative vote of two-thirds of the Members of the Senate, 
        duly chosen and sworn, shall be required to sustain an appeal 
        of the ruling of the Chair on a point of order raised under 
        this section.

``SEC. 320. LIMITS FOR MANDATORY FUNCTION 700 SPENDING.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause total mandatory spending for Veterans Benefits and Services 
(function 700) to exceed the limits specified in subsection (b).
    ``(b) Limits.--For purposes of this section the limits are as 
follows:
            ``(1) For fiscal year 2013, total outlays shall not exceed 
        $73,160,000,000.
            ``(2) For fiscal year 2014, total outlays shall not exceed 
        $73,620,000,000.
            ``(3) For fiscal year 2015, total outlays shall not exceed 
        $75,320,000,000.
            ``(4) For fiscal year 2016, total outlays shall not exceed 
        $82,300,000,000.
            ``(5) For fiscal year 2017, total outlays shall not exceed 
        $79,360,000,000.
            ``(6) For fiscal year 2018, total outlays shall not exceed 
        $76,070,000,000.
            ``(7) For fiscal year 2019, total outlays shall not exceed 
        $83,530,000,000.
            ``(8) For fiscal year 2020, total outlays shall not exceed 
        $85,760,000,000.
            ``(9) For fiscal year 2021, total outlays shall not exceed 
        $88,000,000,000.
            ``(10) For fiscal year 2022, total outlays shall not exceed 
        $95,940,000,000.
    ``(c) Point of Order in the Senate.--
            ``(1) Waiver.--The provisions of this section shall be 
        waived or suspended in the Senate only by the affirmative vote 
        of two-thirds of the Members, duly chosen and sworn.
            ``(2) Appeal.--Appeals in the Senate from decisions of the 
        Chair relating to any provision of this section shall be 
        limited to one hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the measure. An 
        affirmative vote of two-thirds of the Members of the Senate, 
        duly chosen and sworn, shall be required to sustain an appeal 
        of the ruling of the Chair on a point of order raised under 
        this section.''.

SEC. 203. STATUTORY ENFORCEMENT OF SPENDING CAPS THROUGH SEQUESTRATION.

    The Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended by inserting after section 253 the following:

``SEC. 253A. ENFORCEMENT OF DISCRETIONARY AND MANDATORY CAPS.

    ``(a)  Annual Report and Sequestration Order.--
            ``(1) Report.--Not later than 30 calendar days following 
        the start of each fiscal year, the Office of Management and 
        Budget shall make publicly available and cause to be printed in 
        the Federal Register an annual report containing expected 
        budget authority and outlays for the categories and limits 
        established in sections 316 through 320 of the Congressional 
        Budget Act of 1974. The limits established in such sections 
        shall be enforced without regard to the waiver of such limits 
        by either House.
            ``(2) Order.--If the annual report issued by OMB, as 
        required by paragraph (1), shows any category exceeding 
        specified spending caps, OMB shall prepare and the President 
        shall issue and include in that report a sequestration order 
        that, upon issuance, shall reduce budgetary resources by an 
        amount sufficient to bring spending in line with that 
        category's statutory cap.
            ``(3) Effective date.--The sequestration order shall take 
        effect no later than 60 days after completion by the OMB.
    ``(b) Calculating a Sequestration.--
            ``(1) In general.--OMB shall calculate the uniform 
        percentage each program within a category that has exceeded its 
        spending cap shall be reduced to bring that category's budget 
        authority and/or outlays in line with the limits referred to in 
        subsection (a)(1).
            ``(2) Implementation.--The sequesters shall be implemented 
        as follows:
                    ``(A) For the discretionary limits in section 316 
                of the Congressional Budget Act of 1974, pursuant to 
                section 251 with each category sequestered separately.
                    ``(B) For the mandatory limits in section 317 of 
                the Congressional Budget Act of 1974, pursuant to the 
                Statutory Pay-As-You-Go Act of 2010, except that 
                section 7 of such Act shall not apply.
                    ``(C) For the Social Security limits in section 318 
                of the Congressional Budget Act of 1974, the Social 
                Security Administration shall modify the program so 
                that all benefits and administrative expenses are 
                reduced in a uniform fashion by a percentage sufficient 
                to allow the program to operate under its cap.
                    ``(D) For the Medicare limit in section 319 of the 
                Congressional Budget Act of 1974, the Centers for 
                Medicare & Medicaid Services (CMS) shall modify the 
                program so that all outlays are reduced by a uniform 
                percentage sufficient to bring the program under its 
                cap.
                    ``(E) For the Veterans Benefits and Services limit 
                in section 320 of the Congressional Budget Act of 1974, 
                the Secretary of Defense and the Secretary of Veterans 
                Affairs shall modify the program so that the program 
                operates under its spending cap.
    ``(c) Modification of Presidential Order.--
            ``(1) In general.--At any time after the Director of OMB 
        issues a sequestration report, Congress may override the order 
        through the passage of a law that either waves or supersedes 
        the spending limitations for that category of Federal spending 
        for that fiscal year.
            ``(2) Senate.--In the Senate, any motion to move to 
        consideration of a bill to waive, modify, or in any way alter a 
        sequestration order shall be subject to a point of order that 
        can only be waived through an affirmative vote of two-thirds of 
        the Members, duly chosen and sworn. This point of order shall 
        not apply to defense spending while the nation is engaged in a 
        conflict which has been justified through a declaration of war 
        or a Congressional authorization of force.''.

SEC. 204. CONFORMING AMENDMENTS.

    (a) In General.--The Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended--
            (1) in section 250(c)(1) (2 U.S.C. 900(c)(1)), by striking 
        ``shall mean the amounts specified in section 251 of this Act'' 
        and inserting ``shall mean the amounts specified in section 316 
        of the Congressional Budget Act of 1974'';
            (2) in section 251 (2 U.S.C. 901), by striking subsections 
        (b) and (c);
            (3) by striking section 251A (2 U.S.C. 901a);
            (4) in section 254 (2 U.S.C. 904)--
                    (A) in subsection (c)(2), by striking ``under 
                section 251'' and inserting ``under section 316 of the 
                Congressional Budget Act of 1974''; and
                    (B) in subsection (f)(2)(A), by striking ``under 
                section 251'' and inserting ``under section 316 of the 
                Congressional Budget Act of 1974''; and
            (5) in the table of contents, by striking the item relating 
        to section 251A.
    (b) Congressional Budget Act of 1974.--The Congressional Budget Act 
of 1974 is amended--
            (1) in section 302(a)(3)(A) (2 U.S.C. 633(a)(3)(A)), by 
        striking ``section 251(c) of that Act'' and inserting ``section 
        316'';
            (2) in section 312(b)(1) (2 U.S.C. 643(b)(1)), by striking 
        ``section 251(c) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985'' and inserting ``section 316'';
            (3) in section 314 (2 U.S.C. 645)--
                    (A) in subsection (a), by striking ``section 251(b) 
                of the Balanced Budget and Emergency Deficit Control 
                Act of 1985'' and inserting ``section 316''; and
                    (B) by striking subsections (d), (e), and (f); and
            (4) in section 904(c)(2) (2 U.S.C. 621 note) by striking 
        ``312(c), and 314(e)'' and inserting ``312(c)''.
    (c) Budget Control Act of 2011.--Section 106 of the Budget Control 
Act of 2011 (2 U.S.C. 631 note) is repealed.
    (d) Other Laws.--
            (1) The matter under the heading ``emergency forest service 
        firefighting fund'' under the heading ``Forest Service'' under 
        the heading ``DEPARTMENT OF AGRICULTURE'' under title II of the 
        Department of the Interior and Related Agencies Appropriations 
        Act, 1992 (Public Law 102-154; 105 Stat. 1015; 16 U.S.C. 556e) 
        by striking ``: Provided further, That hereafter'' and all that 
        follows and inserting a period.
            (2) Section 5006(d) of the Oil Pollution Act of 1990 (33 
        U.S.C. 2736(d)) is amended by striking ``: Provided, That'' and 
        all that follows and inserting a period.
            (3) The matter under the heading ``Disaster Relief'' under 
        the heading ``FEDERAL EMERGENCY MANAGEMENT AGENCY'' under 
        chapter II of title I of the Dire Emergency Supplemental 
        Appropriations and Transfers for Relief From the Effects of 
        Natural Disasters, for Other Urgent Needs, and for Incremental 
        Cost of ``Operation Desert Shield/Desert Storm'' Act of 1992 
        (Public Law 102-229; 105 Stat. 1711; 42 U.S.C. 5203) is amended 
        by striking ``: Provided further, That hereafter'' and all that 
        follows and inserting a period.
            (4) Section 2602(e) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8621(e)) is amended by 
        striking ``Funds appropriated pursuant to this subsection'' and 
        all that follows and inserting a period.
            (5) The matter under the heading ``emergency department of 
        the interior firefighting fund'' under the heading ``Bureau of 
        Land Management'' under title I of the Department of the 
        Interior and Related Agencies Appropriations Act, 1992 (Public 
        Law 102-154; 105 Stat. 991; 43 U.S.C. 1474a) is amended by 
        striking ``: Provided further, That'' and all that follows and 
        inserting a period.

                           TITLE III--BALANCE

SEC. 301. REQUIREMENT THAT BBA BE SUBMITTED TO STATES.

    (a) In General.--The Secretary of the Treasury shall not exercise 
the additional borrowing authority under subsection (b) of section 3101 
of title 31, United States Code until the date that the Archivist of 
the United States transmits to the States S.J. Res. 10 as introduced on 
March 31, 2011, a balanced budget amendment to the Constitution, or a 
similar amendment provided it requires that total outlays not exceed 
total receipts, that contains a spending limitation as a percentage of 
GDP, and requires that tax increases be approved by a super-majority 
vote in both houses of Congress, for their ratification.
    (b) Amendment to Title 31.--Effective on the date that the 
Archivist of the United States transmits to the States S.J. Res. 10, a 
balanced budget amendment to the Constitution, or a similar amendment 
provided it requires that total outlays not exceed total receipts, that 
contains a spending limitation as a percentage of GDP, and requires 
that tax increases be approved by a super-majority vote in both houses 
of Congress, for their ratification, subsection (b) of section 3101 of 
title 31, United States Code, is amended by striking the dollar 
limitation contained in such subsection and inserting 
$17,400,000,000,000.
                                 <all>