[House Report 105-152]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-152
_______________________________________________________________________


 
 PROVIDING FOR CONSIDERATION OF H.R. 2015, THE BALANCED BUDGET ACT AND 
                   H.R. 2014, THE TAXPAYER RELIEF ACT

                                _______
                                

    June 25 (legislative day, June 24), 1997.--Referred to the House 
                   Calendar and ordered to be printed

_______________________________________________________________________


   Mr. Solomon, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 174]

    The Committee on Rules, having had under consideration 
House Resolution 174, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

               brief summary of provisions of resolution

    The resolution provides for consideration of H.R. 2015, 
``the Balanced Budget Act'' and waives all points of order 
against its consideration. The rule provides three hours of 
general debate equally divided and controlled by the chairman 
and ranking minority member of the Committee on the Budget. The 
rule considers the amendment printed in the Congressional 
Record and numbered 1, as adopted. The rule further waives all 
points of order against the provisions of the bill, as amended 
by the rule. Finally, the rule provides one motion to recommit 
H.R. 2015, with or without instructions.
    In addition, Section 2 of the rule provides for 
consideration of H.R. 2014, ``The Taxpayer Relief Act'', and 
waives all points of order against consideration of the bill 
and against its provisions, as amended by the rule. The rule 
further provides three hours of general debate equally divided 
and controlled by the chairman and ranking minority member of 
the Committee on Ways and Means. The rule considers the 
amendment printed in the Congressional Record and numbered 2, 
as adopted in the House and in the Committee of the Whole. The 
rule provides for consideration of the bill, as amended, as an 
original bill for the purposes of further amendment. 
Furthermore, the rule provides for the consideration of an 
amendment printed in the Congressional Record and numbered 1, 
only if offered by Representative Rangel of New York or his 
designee, which shall be debatable for one hour equally divided 
and controlled by the proponent and an opponent, and which 
shall not be subject to amendment or to a demand for a division 
of the question in the House or in the Committee of the Whole. 
All points of order are waived against this amendment. Finally, 
the rule provides one motion to recommit H.R. 2014, with or 
without instructions.

                            committee votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

Rules Committee Rollcall No. 43

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Moakley.
    Summary of motion: Make in order the Ros-Lehtinen/Meek en 
bloc amendment to preserve SSI and Medicaid benefits for 
elderly or disabled legal immigrants who were in the country on 
August 22, 1996, but were not getting benefits; offset by 
requiring the States to reimburse the Federal government for 
some of the costs of administering the SSI program.
    Results: Defeated 5 to 8.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Yea; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 44

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Moakley.
    Summary of motion: Make in order the Kennedy of 
Massachusetts amendment which alters the funding formula for 
child health insurance coverage to ensure that States that have 
enacted state laws to provide insurance for its uninsured 
children are not penalized.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 45

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Frost.
    Summary of motion: Make in order the Barton/Minge amendment 
which incorporates buget targets into law and holds the 
President and Congress accountable if the actual budget 
outcomes do not meet the budget agreement goals. The amendment 
further requires (1) the President to submit any necessary 
corrections and (2) the Congress to vote on a proposal to 
correct any violation of the agreement.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 46

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Frost.
    Summary of motion: Adopt an amendment to the rule striking 
the spectrum provision from the manager's amendment self-
executed in this rule.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 47

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Frost.
    Summary of motion: Adopt amendment to the rule--self-
executed strike of the Agriculture and Commerce Committee 
provisions that allow administrative determinations of Medicaid 
and food stamp eligibility to be privatized.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 48

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Frost.
    Summary of motion: Make in order the Taylor of Mississippi 
amendment to give guaranteed health coverage to military 
retirees when they become Medicare-eligible.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 49

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Hall.
    Summary of motion: Make in order three Brown of Ohio 
amendments offered en bloc: reduces the number of medical 
savings account demonstration policies from 500,000 to 100,000, 
and uses that savings to cover co-payments for Medicare 
prevention services like mammography; continues Medicaid 
eligibility for disabled children who lose their SSI benefits 
under welfare reform; and ensures that the child health 
insurance provided to the states may only be used for that 
purpose.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 50

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mrs. Slaughter.
    Summary of motion: Make in order the McDermott/Matsui 
amendment that strikes a provision in the bill which would 
permit employers to reclassify their workers as independent 
contractors, thereby eliminating worker protections and pension 
benefits.
    Results: Defeated 4 to 9.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--May; Moakley--Yea; Frost--Yea; Hall--Yea; Slaughter--
Yea; Solomon--Nay.

Rules Committee Rollcall No. 51

    Date: June 24, 1997.
    Measure: Resolution providing for consideration of H.R. 
2015, the ``Balanced Budget Act'' and H.R. 2014, the ``Taxpayer 
Relief Act''.
    Motion by: Mr. Dreier.
    Summary of motion: Order the rule reported.
    Results: Adopted 9 to 4.
    Vote by Members: Dreier--Yea; Goss--Yea; Linder--Yea; 
Pryce--Yea; Diaz-Balart--Yea; McInnis--Yea; Hastings--Yea; 
Myrick--Yea; Moakley--Nay; Frost--Nay; Hall--Nay; Slaughter--
Nay; Solomon--Yea.

 SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED BY THE RULE TO H.R. 2015--
                        THE BALANCED BUDGET ACT

    This manager's amendment consists of changes from 
reconciliation legislation reported to the Committee on the 
Budget that will be self-executed in the rule on reconciliation 
at the request of the Chairman of the Committee on the Budget. 
The manager's amendment makes the following changes from the 
reported legislation:
    Low-Income Medicare Premium Protections. Provides an 
additional $1 billion for low-income Medicare premium 
protections, bringing the total to $1.5 billion over 5 years. 
The provision covers the full Medicare Part B premium for 
seniors with incomes up to 135 percent of poverty. For seniors 
with incomes between 135 percent and 175 percent of poverty, 
the assistance covers that portion of the Medicare Part B 
premium increase attributable to the home heath spending 
transfer.
    Minimum Wage/Welfare-to-Work Participant Protections. 
Contains the following changes from the reported legislation:
    Limits to no more than 40 hours per week the number of 
hours participants in public sector or nonprofit workfare 
activities can be required to work.
    Counts only Temporary Assistance for Needy Families [TANF] 
and food stamp benefits as compensation under the minimum wage 
for workfare participants.
    Adopts the AFDC JOBS criteria for defining work experience 
and community service jobs when States use workfare in the 
public or nonprofit sector to meet State work participation 
requirements, and uses the same criteria for determining 
whether participants are ``employees'' under the terms of the 
Fair Labor Standards Act.
    Adopts worker protection and nondiscrimination provisions 
(preventing discrimination based on age, race, gender, and 
disability), but provides for an independent nonfederal 
grievance resolution procedure.
    Incorporates worker displacement language, which applies to 
all workfare participants and which does not preempt stronger 
State displacement laws.
    Food Stamp Work Slots. Eliminates ``job search'' as a 
qualified activity for additional food stamp work slot funds, 
and raises to 80 percent (from 75 percent) the earmarked funds 
for people between 18 and 50 years old who may lose food stamp 
benefits due to new work requirements.
    Medicaid. Drops language in Medicaid section that allows 
only physicians to decide appropriate hospital stays. This 
language was added to bring the Committee on Commerce closer to 
compliance with its reconciliation directives.
    Children's Health Care. Modifies the children's health care 
block grant to ensure that it complies with the Bipartisan 
Budget Agreement's proposed spending $16 billion over the next 
5 years.
    Medicaid Coverage for SSI Children. Provides $100 million 
to allow States the option of maintaining Medicaid benefits for 
children currently on the Medicaid rolls who would otherwise 
lose Medicaid eligibility because of stricter SSI eligibility 
standards.
    Spectrum Auctions. Increases from $9.7 billion to $20.3 
billion over 5 years the receipts due to spectrum auctions. 
Drops or relaxes numerous conditions specified in the Commerce 
Committee's reported legislation that restricted the Federal 
Communication Commission's ability to auction spectrum. Also 
specifies additional spectrum to be made available for auction.
    Welfare to Work. Requires that all of $3 billion in 
welfare-to-work funds be obligated by fiscal year 1999.
    Multiple Employer Welfare Arrangements. Modifies language 
on Multiple Employer Welfare Arrangements to overcome 
jurisdictional issue between the Committees on Education and 
the Workforce and Ways and Means.
    Veterans' Medical Care. Allow veterans hospitals to retain, 
subject to appropriations, medical care cost recovery receipts, 
so that veterans' medical care remains a discretionary program.
    Budget Enforcement. Budget process changes that are 
consistent with the Bipartisan Budget Agreement (see attached 
summary).

                 summary of budget enforcement changes

Congressional Budget & Impoundment Control Act of 1974

    Permanently extends the requirement that budget resolutions 
cover a five-year period.
    Similarly, extends indefinitely the enforcement of the 
five-year spending and revenue levels set forth in budget 
resolutions through points of order.
    Simplifies and updates points of order that are used to 
enforce the budget resolution's spending and revenue levels.
    Provides for adjustments in the budget resolution levels 
for legislation appropriating funds for designated emergencies, 
arrearages and the International Monetary Fund.
    Eliminates the need to waive the Budget Act for a reported 
bill that violates the Act but is cured by a self-executing 
rule. In such cases, the point of order no longer lies against 
the bill.

Amendments to the Balanced Budget and Emergency Deficit Control Act of 
        1985

    Adjusts and extends statutory discretionary spending 
limits, which are enforced through sequestration, through 
fiscal year 2002.
    Provides for adjustments in the discretionary spending 
limits for appropriations for emergencies, arrearages, and the 
International Monetary Fund.
    Extends pay-as-you-go requirements, which provide that 
entitlement and tax legislation must be fully offset, through 
fiscal year 2002.
    Modifies baseline that is used to ``score'' legislation so 
that committees get credit for eliminating entitlement 
programs.
    Eliminates accrued paygo balance and savings from 
reconciliation to ensure that all savings are used for deficit 
reduction.

 summary of amendment considered as adopted by the rule to h.r. 2014--
                        the taxpayer relief act

I. Modifications to the child tax credit

    The amendment would provide that in the case of lower- and 
middle-income taxpayers, the otherwise allowable child tax 
credit is not reduced by one-half of the otherwise allowable 
dependent care credit. Under the amendment, the reduction only 
applies to taxpayers above certain thresholds of modified 
adjusted gross income (``modified AGI''). For married taxpayers 
filing joint returns, the threshold is $60,000. For taxpayers 
filing single or head of household returns, the threshold is 
$33,000. For married taxpayers filing separate returns, the 
threshold is $30,000. The reduction is phased in over the first 
$10,000 ($5,000, in the case of single individuals and $5,000, 
in the case of married individuals filing separate returns) of 
modified AGI above the threshold. The rules for determining a 
taxpayer's modified AGI and marital status under the bill 
remained unchanged. The effective date would be years beginning 
on or after January 1, 2000.
    The amendment would provide that the Secretary of the 
Treasury shall submit notice to all taxpayers of the passage of 
the child tax credit. In addition, the amendment would direct 
the Secretary of the Treasury to modify withholding tables for 
single taxpayers claiming more than one exemption and for 
married taxpayers claiming more than two exemptions to take 
account of the effects of the child tax credit. The adjustments 
to the withholding tables would apply to employees whose 
annualized wages from an employer are expected to be at least 
$30,000, but not more than $100,000.

2. Estimated tax safe harbor

    The amendment would change the 110-percent-of-last-year's-
liability estimated tax safe harbor to a 105-percent-of-last-
year's-liability safe harbor for 1998.

3. Repeal alternative minimum tax depreciation adjustment

    The amendment would direct the Secretary of the Treasury to 
conduct a study of whether the repeal of the depreciation 
adjustment for minimum tax purposes would have the result of 
permitting any corporation with taxable income from current 
year operations to pay no Federal income tax and, if so, the 
policy implications of that result. The study would be due no 
later than January 1, 2001, to the House Committee on Ways and 
Means and the Senate Committee on Finance.

4. Airport and Airway Trust Fund excise taxes

    The amendment would provide that the deposit rules with 
respect to the commercial air passenger excise taxes are 
modified to permit payment of these taxes that otherwise would 
have been required to be deposited during the period July 1, 
1998, through September 30, 1998, to be deposited on October 
13, 1998.

5. Modification to tax benefits for ethanol and renewable source 
        methanol

    The amendment would delete those provisions in the bill 
relating to a reduction in tax benefits for ethanol and 
renewable source methanol.

6. Name of the act

    The amendment would change the name of the Act from the 
``Revenue Reconciliation Act of 1977'' to the ``Taxpayer Relief 
Act of 1997''.

7. Change in budgetary treatment of certain expiring provisions

    The amendment would amend the Balanced Budget and Emergency 
Deficit Control Act of 1985 to provide that any preferential 
rate (or any credit or refund) that is scheduled to expire and 
that, under current scorekeeping conventions, is presumed to be 
extended for purposes of determining the present-law revenue 
baseline shall, for budget scorekeeping purposes, be assumed to 
expire on the scheduled expiration date.

                                
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