[Congressional Record Volume 146, Number 44 (Monday, April 10, 2000)]
[Senate]
[Pages S2466-S2468]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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          LEGISLATION INSTITUTING A FEDERAL FUELS TAX HOLIDAY

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                       GRAHAM AMENDMENT NO. 3083

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
the bill (S. 2285) instituting a Federal fuels tax holiday; as follows:

       At the end add the following:

     SEC. ____. DELAY IN EFFECTIVE DATE.

       (a) Findings.--The Senate finds the following:
       (1) The social security program is the foundation upon 
     which millions of Americans rely for income during retirement 
     or in the event of disability.
       (2) For nearly two-thirds of seniors living alone, social 
     security comprises 50 percent or more of their total income.
       (3) The medicare program provides essential medical care 
     for tens of millions of older and disabled Americans.
       (4) During the 35-year history of the program, medicare has 
     helped lift elderly Americans out of poverty and has improved 
     and extended their lives.
       (5) According to the 2000 annual report of the Board of 
     Trustees of the social security trust funds--
       (A) beginning in 2016, payroll tax revenue will fall short 
     of the amount needed to pay current benefits, necessitating 
     the use of interest earned on trust fund assets and then the 
     eventual redemption of those assets; and
       (B) assets of the combined retirement and disability trust 
     funds will be exhausted in 2037.
       (6) According to the 2000 annual report of the Board of 
     Trustees of the social security trust funds, assets in the 
     medicare health insurance trust fund will be exhausted in 
     2023.
       (7) The Congressional Budget Office has prepared 3 
     estimates of the non-social security surplus for the next 10 
     years which range in size from $838,000,000,000 to 
     $1,918,000,000,000.
       (8) The presence of non-social security surpluses present 
     Congress with the opportunity to address the long-term 
     funding shortfall facing the social security and medicare 
     programs.
       (b) Delay in Effective Date.--Notwithstanding any other 
     provision of, or amendment made by, this Act, no such 
     provision or amendment shall take effect until legislation 
     has been enacted that extends the solvency of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund under section 201 of the 
     Social Security Act through 2075 and the Federal Hospital 
     Insurance Trust Fund under part A of title XVIII of such Act 
     through 2025.
                                 ______
                                 

                     LOTT AMENDMENTS NOS. 3084-3085

  (Ordered to lie on the table.)
  Mr. LOTT submitted two amendments intended to be proposed by him to 
the bill, S. 2285, supra; as follows:

                           Amendment No. 3084

       Strike all after the first word and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Fuels Tax Holiday 
     Act of 2000''.

     SEC. 2. TEMPORARY REDUCTION IN FUEL TAXES ON GASOLINE, DIESEL 
                   FUEL, KEROSENE, AVIATION FUEL, AND SPECIAL 
                   FUELS, BY 4.3 CENTS, OR TO ZERO.

       (a) Temporary Reduction in Fuel Taxes.--During the 
     applicable period, each rate of tax referred to in subsection 
     (b)--
       (1) shall be reduced by 4.3 cents per gallon, and
       (2) if at any time during the applicable period the 
     national average price of unleaded regular gasoline is at 
     least $2.00 per gallon (as determined on a weekly basis by 
     the Secretary of Energy), shall be suspended beginning on the 
     date which is 7 days after the announcement described in 
     subsection (d) and for the remainder of the applicable 
     period, subject to subsection (e).
       (b) Rates of Tax.--The rates of tax referred to in this 
     subsection are the rates of tax otherwise applicable under--
       (1) paragraphs (1), (2), and (3) of section 4041(a) of the 
     Internal Revenue Code of 1986 (relating to special fuels),
       (2) subsection (m) of section 4041 of such Code (relating 
     to certain alcohol fuels),
       (3)(A) in the case of the reduction under subsection 
     (a)(1), subparagraph (C) of section 4042(b)(1) of such Code 
     (relating to tax on fuel used in commercial transportation on 
     inland waterways), and
       (B) in the case of the suspension under subsection (a)(2), 
     subparagraphs (A) and (C) of such section 4042(b)(1),
       (4) clauses (i), (ii), and (iii) of section 4081(a)(2)(A) 
     of such Code (relating to gasoline, diesel fuel, and 
     kerosene),
       (5) paragraph (1) of section 4091(b) of such Code (relating 
     to aviation fuel), and
       (6) paragraph (2) of section 4092(b) of such Code (relating 
     to fuel used in commercial aviation).
       (c) Special Reduction Rules.--
       (1) In general.--Paragraph (1) of subsection (a) shall be 
     applied by substituting for ``4.3 cents''--
       (A) ``3.2 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(ii) of the Internal Revenue Code of 1986 
     (relating to liquefied petroleum),
       (B) ``2.8 cents'' in the case of fuel described in section 
     4041(a)(2)(B)(iii) of such Code (relating to liquefied 
     natural gas),
       (C) ``48.54 cents'' in the case of fuel described in 
     section 4041(a)(3)(A) of such Code (relating to compressed 
     natural gas), and
       (D) ``2.15 cents'' in the case of fuel described in section 
     4041(m)(1)(A)(ii)(I) of such Code (relating to certain 
     alcohol fuel).
       (2) Conforming rules.--
       (A) In the case of a reduction under subsection (a)(1)--
       (i) section 4081(c) of such Code shall be applied without 
     regard to paragraph (6) thereof,
       (ii) section 4091(c) of such Code shall be applied without 
     regard to paragraph (4) thereof,
       (iii) section 6421(f)(2) of such Code shall be applied by 
     disregarding ``and, in the case'' and all that follows,
       (iv) section 6421(f)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof,
       (v) section 6427(l)(3) of such Code shall be applied 
     without regard to subparagraph (B) thereof, and
       (vi) section 6427(l)(4) of such Code shall be applied 
     without regard to subparagraph (B) thereof.
       (B) In the case of a suspension under subsection (a)(2)--
       (i) section 40(e)(1) of such Code shall be applied without 
     regard to subparagraph (B) thereof,
       (ii) section 4041(d)(1) of such Code shall be applied by 
     disregarding ``if tax is imposed by

[[Page S2467]]

     subsection (a)(1) or (2) on such sale or use'', and
       (iii) section 6427(b) of such Code shall be applied without 
     regard to paragraph (2) thereof.
       (d) Announcement by Secretary of the Treasury.--Within 2 
     days of the determination by the Secretary of Energy 
     described in subsection (a)(2), the Secretary of the Treasury 
     shall announce the suspension described in such subsection or 
     the modification described in subsection (e).
       (e) Protecting Social Security Trust Funds.--If upon the 
     determination described in subsection (a)(2), the Secretary 
     of the Treasury, after consultation with the Director of the 
     Office of Management and Budget, and based on the most recent 
     available estimate of the Federal on-budget surplus for 
     fiscal years 2000 and 2001, determines that the suspension 
     described in subsection (a)(2) when added to the reduction 
     described in subsection (a)(1) would result in an aggregate 
     reduction in revenues to the Treasury exceeding such surplus 
     during the remainder of the applicable period, the Secretary 
     shall modify such suspension such that each rate of tax 
     referred to in subsection (b) is reduced in a pro rata manner 
     and such aggregate reduction does not exceed such surplus.
       (f) Maintenance of trust funds deposits.--On April 16, 
     2000, and, if necessary, on the date described in subsection 
     (a)(2), the Secretary of the Treasury shall determine the 
     amount any Federal trust fund would have received in gross 
     receipts during the applicable period had this section not 
     been enacted. Such amount shall be appropriated and 
     transferred from the general fund to the applicable trust 
     fund in the manner in which such gross receipts would have 
     been transferred by the Secretary of the Treasury and such 
     amount shall be treated as taxes received in the Treasury 
     under the applicable section of the Internal Revenue Code of 
     1986 described in subsection (b).
       (g) Applicable Period.--For purposes of this section, the 
     term ``applicable period'' means the period beginning after 
     April 15, 2000, and ending before January 1, 2001.

     SEC. 3. FLOOR STOCKS CREDIT.

       (a) In General.--If--
       (1) before a tax reduction date, a tax referred to in 
     section 2(b) has been imposed on any liquid, and
       (2) on such date such liquid is held by a dealer and has 
     not been used and is intended for sale,
     there shall be credited (without interest) to the person who 
     paid such tax (hereafter in this section referred to as the 
     ``taxpayer''), against the taxpayer's subsequent semi-monthly 
     deposit of such tax, an amount equal to the excess of the tax 
     paid by the taxpayer over the amount of such tax which would 
     be imposed on such liquid had the taxable event occurred on 
     the tax reduction date.
       (b) Certification Necessary To File Claim for Credit.--
       (1) In general.--In any case where liquid is held by a 
     dealer (other than the taxpayer) on the tax reduction date, 
     no credit amount with respect to such liquid shall be allowed 
     to the taxpayer under subsection (a) unless the taxpayer 
     files with the Secretary--
       (A) a certification that the taxpayer has given a credit to 
     such dealer with respect to such liquid against the dealer's 
     first purchase of liquid from the taxpayer subsequent to the 
     tax reduction date, and
       (B) a certification by such dealer that such dealer has 
     given a credit to a succeeding dealer (if any) with respect 
     to such liquid against the succeeding dealer's first purchase 
     of liquid from such dealer subsequent to the tax reduction 
     date.
       (2) Reasonableness of claims certified.--Any certification 
     made under paragraph (1) shall include an additional 
     certification that the claim for credit was reasonable based 
     on the taxpayer's or dealer's past business relationship with 
     the succeeding dealer.
       (c) Definitions.--For purposes of this section--
       (1) the terms ``dealer'' and ``held by a dealer'' have the 
     respective meanings given to such terms by section 6412 of 
     the Internal Revenue Code of 1986; except that the term 
     ``dealer'' includes a position holder, and
       (2) the term ``tax reduction date'' means April 16, 2000, 
     or the date described in section 2(a)(2).
       (d) Certain Rules To Apply.--Rules similar to the rules of 
     subsections (b) and (c) of section 6412 of such Code shall 
     apply for purposes of this section.

     SEC. 4. FLOOR STOCKS TAX.

       (a) Imposition of Tax.--In the case of any liquid on which 
     a tax referred to in section 2(b) would have been imposed 
     during the applicable period but for the enactment of this 
     Act, and which is held on the floor stocks tax date by any 
     person, there is hereby imposed a floor stocks tax in an 
     amount equal to the excess of--
       (1) the tax referred to in section 2(b) which would be 
     imposed on such liquid had the taxable event occurred on the 
     floor stocks tax date, over
       (2) the amount of such tax previously paid (if any) with 
     respect to such liquid.
       (b) Liability for Tax and Method of Payment.--
       (1) Liability for tax.--A person holding a liquid on the 
     floor stocks tax date to which the tax imposed by subsection 
     (a) applies shall be liable for such tax.
       (2) Method of payment.--The tax imposed by subsection (a) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (3) Time for payment.--The tax imposed by subsection (a) 
     shall be paid on or before the date which is 45 days after 
     the floor stocks tax date.
       (c) Definitions.--For purposes of this section--
       (1) Held by a person.--A liquid shall be considered as 
     ``held by a person'' if title thereto has passed to such 
     person (whether or not delivery to the person has been made).
       (2) Floor stocks tax date.--The term ``floor stocks tax 
     date'' means January 1, 2001.
       (3) Applicable period.--The term ``applicable period'' 
     means the period beginning after April 15, 2000, and ending 
     before January 1, 2001.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury or the Secretary's delegate.
       (d) Exception for Exempt Uses.--The tax imposed by 
     subsection (a) shall not apply to any liquid held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax referred to in section 2(b) is allowable 
     for such use.
       (e) Exception for Fuel Held in Vehicle Tank.--No tax shall 
     be imposed by subsection (a) on any liquid held in the tank 
     of a motor vehicle, motorboat, vessel, or aircraft.
       (f) Exception for Certain Amounts of Fuel.--
       (1) In general.--No tax shall be imposed by subsection (a) 
     on any liquid held on the floor stocks tax date by any person 
     if the aggregate amount of such liquid held by such person on 
     such date does not exceed 2,000 gallons. The preceding 
     sentence shall apply only if such person submits to the 
     Secretary (at the time and in the manner required by the 
     Secretary) such information as the Secretary shall require 
     for purposes of this paragraph.
       (2) Exempt fuel.--For purposes of paragraph (1), there 
     shall not be taken into account any liquid held by any person 
     which is exempt from the tax imposed by subsection (a) by 
     reason of subsection (d) or (e).
       (3) Controlled groups.--For purposes of this subsection--
       (A) Corporations.--
       (i) In general.--All persons treated as a controlled group 
     shall be treated as 1 person.
       (ii) Controlled group.--The term ``controlled group'' has 
     the meaning given to such term by subsection (a) of section 
     1563 of the Internal Revenue Code of 1986; except that for 
     such purposes the phrase ``more than 50 percent'' shall be 
     substituted for the phrase ``at least 80 percent'' each place 
     it appears in such subsection.
       (B) Nonincorporated persons under common control.--Under 
     regulations prescribed by the Secretary, principles similar 
     to the principles of subparagraph (A) shall apply to a group 
     of persons under common control if 1 or more of such persons 
     is not a corporation.
       (g) Other Law Applicable.--All provisions of law, including 
     penalties, applicable with respect to the taxes imposed by 
     chapter 31 or 32 of such Code shall, insofar as applicable 
     and not inconsistent with the provisions of this section, 
     apply with respect to the floor stock taxes imposed by 
     subsection (a) to the same extent as if such taxes were 
     imposed by such chapter.

     SEC. 5. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO 
                   CONSUMERS.

       (a) Passthrough to Consumers.--
       (1) Sense of congress.--It is the sense of Congress that--
       (A) consumers immediately receive the benefit of the 
     reduction in taxes under this Act, and
       (B) transportation motor fuels producers and other dealers 
     take such actions as necessary to reduce transportation motor 
     fuels prices to reflect such reduction, including immediate 
     credits to customer accounts representing tax refunds allowed 
     as credits against excise tax deposit payments under the 
     floor stocks refund provisions of this Act.
       (2) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study of the reduction of taxes under 
     this Act to determine whether there has been a passthrough of 
     such reduction.
       (B) Report.--Not later than September 30, 2000, the 
     Comptroller General of the United States shall report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives the results of the 
     study conducted under subparagraph (A).
                                  ____


                           Amendment No. 3085

       On page 2, strike lines 7 and 8.
                                 ______
                                 

                        BURNS AMENDMENT NO. 3086

  (Ordered to lie on the table.)
  Mr. BURNS submitted an amendment intended to be proposed by him to 
the bill, S. 2285, supra; as follows:

       Strike all after the first word, and insert:

     SEC. 2. REPEAL OF 4.3-CENT AVIATION FUEL EXCISE TAXES.

       (a) In General.--Section 4091(b)(1) of the Internal Revenue 
     Code of 1986 (relating to rate of tax) is amended by striking 
     ``21.8 cents'' and inserting ``17.5 cents''.
       (b) Conforming Amendments.--
       (1) Section 4091(b)(3)(A) of the Internal Revenue Code of 
     1986 is amended to read as follows:
       ``(A) The rate of tax specified in paragraph (1) shall be 
     zero after September 30, 2007.''.

[[Page S2468]]

       (2) Section 4091(c)(1) of such Code is amended--
       (A) by striking ``13.4 cents'' both places it appears and 
     inserting ``9.1 cents'', and
       (B) by striking ``14 cents'' and inserting ``9.7 cents''.
       (3) Section 4091(c) of such Code is amended by striking 
     paragraph (4) and by redesignating paragraph (5) as paragraph 
     (4).
       (4) Section 4092(b)(2) of such Code is amended by inserting 
     ``and before the date of the enactment of the ____ Act,'' 
     after ``1995,''.
       (5) Section 4081(a)(2)(A)(ii) of such Code is amended by 
     striking ``19.3 cents'' and inserting ``15 cents''.
       (6) Section 4081(d)(2) of such Code is amended to read as 
     follows:
       ``(2) Aviation gasoline.--The rate of tax specified in 
     subsection (a)(2)(A)(ii) shall be zero after September 30, 
     2007.''.
       (7) Section 4041(c)(3) of such Code is amended to read as 
     follows:
       ``(3) Termination.--The rate of the taxes imposed by 
     paragraph (1) shall be zero after September 30, 2007.''.
       (8) Section 6421(f)(2)(B) of such Code is amended by 
     striking ``financing rate'' and all that follows and 
     inserting ``financing rate.''.
       (9) Section 6427(l)(4)(B) of such Code is amended by 
     inserting ``and before the date of the enactment of the ____ 
     Act,'' after ``1995,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
                                 ______
                                 

                     TORRICELLI AMENDMENT NO. 3087

  (Ordered to lie on the table.)
  Mr. TORRICELLI submitted an amendment intended to be proposed by him 
to the bill, S. 2285, supra; as follows:

       At the end add the following:

     SEC. ____. MODIFICATIONS TO DISASTER CASUALTY LOSS DEDUCTION.

       (a) Lower Adjusted Gross Income Threshold.--Paragraph (2) 
     of section 165(h) of the Internal Revenue Code of 1986 
     (relating to treatment of casualty gains and losses) is 
     amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) In general.--If the personal casualty losses for any 
     taxable year exceed the personal casualty gains for such 
     taxable year, such losses shall be allowed for the taxable 
     year only to the extent of the sum of--
       ``(i) the amount of the personal casualty gains for the 
     taxable year, plus
       ``(ii) so much of such excess attributable to losses 
     described in subsection (i) as exceeds 5 percent of the 
     adjusted gross income of the individual (determined without 
     regard to any deduction allowable under subsection (c)(3))'', 
     plus
       ``(iii) so much of such excess attributable to losses not 
     described in subsection (i) as exceeds 10 percent of the 
     adjusted gross income of the individual.

     For purposes of this subparagraph, personal casualty losses 
     attributable to losses not described in subsection (i) shall 
     be considered before such losses attributable to losses 
     described in subsection (i).'', and
       (2) by striking ``10 percent'' in the heading and inserting 
     ``percentage''.
       (b) Above-The-Line Deduction.--Section 62(a) of the 
     Internal Revenue Code of 1986 (defining adjusted gross 
     income) is amended by inserting after paragraph (17) the 
     following:
       ``(18) Certain disaster losses.--The deduction allowed by 
     section 165(c)(3) to the extent attributable to losses 
     described in section 165(i).''
       (c) Election To Take Disaster Loss Deduction for Preceding 
     or Succeeding 2 Years.--Paragraph (1) of section 165(i) of 
     the Internal Revenue Code of 1986 (relating to disaster 
     losses) is amended--
       (1) by inserting ``or succeeding'' after ``preceding'', and
       (2) by inserting ``or succeeding'' after ``preceding'' in 
     the heading.
       (d) Effective Date.--The amendments made by this section 
     shall apply to losses sustained in taxable years beginning 
     after December 31, 1998.

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