[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[House]
[Pages 30732-30733]
[From the U.S. Government Publishing Office, www.gpo.gov]



   PRIVILEGES OF THE HOUSE--RETURNING TO THE SENATE S. 4, SOLDIERS', 
      SAILORS', AIRMEN'S, AND MARINES' BILL OF RIGHTS ACT OF 1999

  Mr. WELLER. Mr. Speaker, I rise to a question of the privileges of 
the House, and I offer a privileged resolution (H. Res. 393) and ask 
for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 393

       Resolved, That the bill of the Senate (S. 4) entitled the 
     ``Soldiers', Sailors', Airmen's, and Marines' Bill of Rights 
     Act of 1999'', in the opinion of this House, contravenes the 
     first clause of the seventh section of the first article of 
     the Constitution of the United States and is an infringement 
     of the privileges of this House and that such bill be 
     respectfully returned to the Senate with a message 
     communicating this resolution.

  The SPEAKER pro tempore (Mr. Pease). In the opinion of the Chair, the 
resolution constitutes a question of the privileges of the House under 
rule IX.
  The gentleman from Illinois (Mr. Weller) is recognized for 30 
minutes.
  Mr. WELLER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this resolution is necessary to return to the Senate the 
bill, S. 4, which contravenes the constitutional requirement that 
revenue measures shall originate in the House of Representatives.
  Section 202 of the bill authorizes members of the Armed Forces to 
participate in the Federal Thrift Savings Plan and permits them to 
contribute any part of a special or incentive pay that they might 
receive. However, it also effectively provides that the limitations of 
Internal Revenue Code section 415 will not apply to those extra 
contributions. Thus, the provision allows certain members of the 
uniformed services to avoid the negative tax consequences that would 
otherwise result in their extra contributions to the TSP. Accordingly, 
the provision is revenue affecting in a constitutional sense.
  There are numerous precedents for this action I am requesting.
  I want to emphasize that this action speaks solely to the 
constitutional prerogative of the House and not to the merits of the 
Senate bill. Proposed action today is procedural in nature, and it is 
necessary to preserve the prerogatives of the House to originate 
revenue measures, makes clear to the Senate that the appropriate 
procedure for dealing with revenue measures is for the House to act 
first on a revenue bill and for the Senate to accept it or amend it as 
it sees fit.
  This resolution is necessary to return to the Senate the bill S. 4, 
the ``Soldiers', Sailors', Airmen's, and Marines' Bill of Rights Act of 
1999.'' S. 4 contravenes the constitutional requirement that revenue 
measures shall originate in the House of Representatives.
  S. 4 would provide a variety of benefits to members of the Armed 
Forces. I strongly support our Armed Forces and agree that we need to 
modernize our military and compensate our officers and enlisted 
personnel fairly. However, S. 4, as passed by the Senate, would not 
only increase the compensation of members of the Armed Forces. It would 
also modify the tax treatment of some of their compensation. This 
change in tax treatment causes S. 4 to violate the Origination Clause 
of the United States Constitution.
  Section 202 of the bill generally authorizes members of the Armed 
Forces to participate in the Federal Thrift Savings Plan. In 
particular, section 202 of the bill adds a new section 8440e to Title 5 
of the United States Code. New section 8440e generally permits members 
of the uniformed services or Ready Reserve who are authorized to 
participate in the Thrift Savings Plan to contribute up to 5 percent of 
their basic pay to the Thrift Savings Plan. In addition, subsection (d) 
of new section 8440e permits members of the uniformed services to 
contribute to the Thrift Savings

[[Page 30733]]

Plan any part of their special or incentive pay they receive under 
section 308, 308a through 308h, or 318 of title 37. The subsection 
further provides in effect that the limitations of Internal Revenue 
Code section 415 will not apply to such contribution. Code section 415 
generally provides limitations on benefits and contributions under 
qualified employee benefit plans.
  Thus, the effect of subsection (d) of new section 8440e is to 
override the limits on the Thrift Savings Plan contribution imposed by 
Internal Revenue Code section 415. By overriding Code section 415, the 
provision allows certain members of the uniformed services to avoid the 
negative tax consequences that would result from such contributions. 
Accordingly, the provision is revenue-affecting in a constitutional 
senses.
  Plainly, allowing members of the Armed Forces to participate in the 
Thrift Savings Plan causes a reduction in revenues as a budget 
scorekeeping matter, since contributions to the Thrift Savings Plan 
reduce the taxable incomes of participants by operation of the existing 
tax laws, and therefore their tax liabilities. However, the reduction 
in Federal revenues is viewed as an indirect effect of the provision 
since the provision does not attempt to specify or modify the tax rules 
that would otherwise apply to the provision, and therefore does not 
offend the constitutional requirement. Rather, new subsection (d) 
offends the Origination Clause because it directly amends the internal 
revenue laws. Subsection (d) overrides the limitations imposed by Code 
section 415, thereby directly modifying the tax liability of 
individuals who would otherwise be subject to its limits. Such a 
provision is plainly revenue-affecting and therefore constitutes a 
revenue measure in the constitutional sense. Accordingly, I am asking 
that the House insist on its constitutional prerogatives.
  There are numerous precedents for the action I am requesting. For 
example, on July 21, 1994, the House returned to the Senate S. 1030, 
containing a provision exempting certain veteran payments from 
taxation. On October 7, 1994, the House returned to the Senate S. 1216, 
containing provisions exempting certain settlement income from 
taxation. On September 27, 1996, the House returned to the Senate S. 
1311, containing a provision that overrode the Federal income tax rules 
governing recognition of tax-exempt status.
  I want to emphasize that this action speaks solely to the 
constitutional prerogative of the House and not to the merits of the 
Senate bill. The proposed action today is procedural in nature and is 
necessary to preserve the prerogatives of the House to originate 
revenue measures. It makes clear to the Senate that the appropriate 
procedure for dealing with revenue measures is for the House to act 
first on a revenue bill and for the Senate to accept it or amend it as 
it sees fit.
  Mr. SKELTON. Mr. Speaker, will the gentleman yield?
  Mr. WELLER. I yield to the gentleman from Missouri.
  Mr. SKELTON. Mr. Speaker, the bill of which the gentleman speaks, has 
that been previously passed here in the House?
  Mr. WELLER. Yes, Mr. Speaker.
  Mr. SKELTON. And the purpose of this is to comply with the 
Constitution to state that it originates in the House; is that correct?
  Mr. WELLER. Yes. This resolution does not address the merits of the 
legislation, which many Members on both sides of the aisle support. 
What it does is preserve the prerogatives of the House revenue-
affecting measures originating in the House under the Constitution.
  Mr. SKELTON. Mr. Speaker, I thank the gentleman.
  Mr. WELLER. Mr. Speaker, I have no other speakers, and I yield back 
the balance of my time.
  The SPEAKER pro tempore. The question is on the resolution.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.

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