Economic Growth and Jobs Act of 1994

Summary: Economic Growth and Jobs Act of 1994 - Grants the President authority to declare temporary tax reductions based on economic growth and the rate of national unemployment. 
Provides for a temporary surtax when the economic growth requirements are subsequently satisfied.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Growth and Jobs Act of 
1994''.

SEC. 2. TAX RELIEF IN THE EVENT OF LOW GROWTH.

    (a) Low-Growth Report.--
            (1) In general.--At any time, the Director of the Office of 
        Management and Budget (hereafter in this section referred to as 
        the ``Director'') shall notify the President and the Congress 
        if the Director has determined that for any of the periods 
        described in paragraph (2)--
                    (A) economic growth as measured by the change in 
                real Gross Domestic Product (GDP) at an annual rate is 
                estimated to be less than 3 percent, and
                    (B) the rate of national unemployment (seasonally 
                adjusted) is estimated to be greater than 6.0 percent.
            (2) Testing periods.--For purposes of paragraph (1), the 
        periods described in this paragraph are--
                    (A) the period consisting of the quarter during 
                which the notification is given and the quarter 
                preceding such notification,
                    (B) the period consisting of the preceding 4 
                quarters, and
                    (C) the period consisting of the 4 quarters 
                following such notification.
    (b) Presidential Authorization of Temporary Tax Reductions.--
            (1) Presidential declaration.--After notification under 
        subsection (a), the President may issue a declaration that 
        temporary income tax reductions are required for a specified 
        calendar year to provide a quick and necessary fiscal stimulus 
        to the economy. Any such declaration shall be transmitted to 
        the Congress.
            (2) Temporary tax modifications.--If the President 
        transmits a declaration under paragraph (1) to the Congress--
                    (A) Temporary tax reductions.--
                            (i) In general.--Effective for taxable 
                        years beginning in the calendar year specified 
                        in such declaration--
                                    (I) the rates applicable to the 
                                first income bracket in the tax tables 
                                contained in section 1 of the Internal 
                                Revenue Code of 1986 shall be reduced 
                                by a percentage (not to exceed 13\1/3\ 
                                percent) specified in such declaration, 
                                and
                                    (II) the amounts set forth as tax 
                                in such tables shall be adjusted to 
                                reflect such rate reduction.
                            (ii) Withholding adjustments.--The 
                        withholding tables or procedures prescribed by 
                        the Secretary of the Treasury or his delegate 
                        under section 3402(a) of such Code shall be 
                        modified so that, to the maximum extent 
                        possible, the full calendar year effect of such 
                        reduction is reflected through withholding 
                        reductions during the portion of the calendar 
                        year after such declaration.
                    (B) Temporary surtax where economic growth 
                requirements subsequently satisfied.--
                            (i) In general.--Effective for taxable 
                        years beginning in the first subsequent 
                        calendar year for which the economic growth 
                        requirements of paragraph (3) are satisfied--
                                    (I) each rate of tax in the tax 
                                tables contained in section 1 of the 
                                Internal Revenue Code of 1986 shall be 
                                increased by the percentage determined 
                                under paragraph (4) for such year, and
                                    (II) the amounts set forth as tax 
                                in such tables shall be adjusted to 
                                reflect such rate increases.
                            (ii) Withholding adjustments.--Effective 
                        for such subsequent calendar year, the 
                        withholding tables or procedures prescribed by 
                        the Secretary of the Treasury or his delegate 
                        under section 3402(a) of such Code shall be 
                        modified to reflect the increase in tax rates 
                        under clause (i).
            (3) Economic growth requirements.--The economic growth 
        requirements of this paragraph are satisfied for any calendar 
        year if, before the beginning of such calendar year, the 
        President determines (and publishes such determination in the 
        Federal Register) that for such calendar year and the 
        immediately preceding calendar year--
                    (A) economic growth as measured by the change in 
                the real Gross Domestic Product (GDP) is estimated to 
                be greater than 4 percent, and
                    (B) the rate of national unemployment (seasonally 
                adjusted) is estimated to be less than 6.0 percent.
            (4) Rate increase percentage.--The percentage determined 
        under this paragraph is the percentage increase in the tax 
        rates contained in section 1 of the Internal Revenue Code of 
        1986 which the President estimates will result in an aggregate 
        increase in receipts under chapter 1 of such Code equal to the 
        aggregate decrease in receipts under such Code by reason of 
        subparagraph (A) of paragraph (2). Such percentage shall be 
        published in the Federal Register before the beginning of the 
        calendar year for which the economic growth requirements of 
        paragraph (2) are satisfied.
            (5) Special rules where more than 1 rate reduction.--If 
        there has been more than 1 reduction under paragraph (2)(A) 
        before any increase under paragraph (2)(B)--
                    (A) paragraph (2)(B) shall not be limited to the 
                first subsequent calendar year for which the economic 
                growth requirements of paragraph (3) are satisfied, but
                    (B) the percentage determined under paragraph (4) 
                for each such subsequent calendar year shall be 
                determined by taking into account only the decrease in 
                receipts under such Code with respect to taxable years 
                beginning in a single calendar year, beginning with the 
                earliest calendar year with respect to which a 
                percentage increase has not been determined under 
                paragraph (4).

SEC. 3. TREATMENT UNDER PAY-AS-YOU-GO PROCEDURES.

    Any reduction or increase in receipts resulting from section 2 of 
this Act shall not be considered for any purpose under the Balanced 
Budget and Emergency Deficit Control Act of 1985.