Economic Growth Incentive Act of 1995

Summary: TABLE OF CONTENTS: 
     Title I:  Reduction in Individual Income Taxes 
     Title II:  Incentive for Purchase of American-Made Property 
     Title III:  Surface Transportation Programs 
     Title IV:  Relief from Credit Crunch 
     Title V:  Cap on Federal Employment 
     Title VI:  Reduction in Federal Overhead Expenses 
Economic Growth Incentive Act of 1995 - 
Title I:  Reduction in Individual Income Taxes
 - Amends the Internal Revenue Code to reduce individual income taxes. 
Title II:  Incentive for Purchase of American-Made Property
 - Allows an itemized deduction for State and local general sales taxes imposed on the retail sale of American-made property. 
Title III:  Surface Transportation Programs
 - Amends the Intermodal Surface Transportation Efficiency Act of 1991 to repeal the obligation ceiling for Federal-aid highways and highway safety construction programs. 
Authorizes appropriations for FY 1998 through 1999 for:  (1) highway programs; (2) donor State bonus amounts; (3) apportionment adjustments; (4) set asides for interstate discretionary projects; (5) the discretionary bridge program; (6) national high-speed ground transportation programs; (7) the highway timber bridge program; (8) highway use tax evasion projects; (9) the scenic byways program; (10) construction of ferry boats and ferry terminal facilities; (11) certain highway safety programs; (12) Federal Transit Act authorizations; and (13) the motor carrier safety grant program. 
Removes the highway safety obligation ceilings. 
Amends the Internal Revenue Code to extend the authority to make expenditures from the Highway Trust Fund until September 30, 1999. 
Title IV:  Relief from Credit Crunch
 - Expresses the sense of the Congress that:  (1) the current "credit crunch" should be eased by making it easier for businesses and individuals to obtain loans and leases; and (2) State banking authorities and the appropriate Federal banking agencies should more sensibly apply the requirements on loan loss reserves so as not to punish or restrain responsible borrowers. 
Title V:  Cap on Federal Employment
 - Prohibits the number of Federal employees from exceeding such number on the date of enactment of this Act.  Rescinds all unobligated amounts that were appropriated before such date to pay the salary, wages, or benefits for a position not filled on that date. 
Title VI:  Reduction in Federal Overhead Expenses
 - Rescinds ten percent of all unobligated amounts that were appropriated before the date of enactment of this Act to pay overhead expenses of any Federal agency.  Reduces authorizations for any fiscal year to pay overhead expenses of any Federal agency by ten percent.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Growth Incentive Act of 
1995''.

              TITLE I--REDUCTION IN INDIVIDUAL INCOME TAXES

SEC. 101. 5-PERCENT DECREASE IN INDIVIDUAL INCOME TAXES FOR MOST 
              TAXPAYERS.

    (a) Rate Reductions.--Subsection (f) of section 1 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Rate reductions.--In prescribing the tables under 
        paragraph (1) which apply with respect to taxable years 
        beginning in a calendar year after 1995--
                    ``(A) `14.25%' shall be substituted for `15%',
                    ``(B) `26.6%' shall be substituted for `28%',
                    ``(C) `29.45%' shall be substituted for `31%', and
                    ``(D) `34.2%' shall be substituted for `36%'.''
    (b) Technical Amendments.--
            (1) Subparagraph (B) of section 1(f)(2) of such Code is 
        amended by inserting ``except as provided in paragraph (8),'' 
        before ``by not changing''.
            (2) Subparagraph (C) of section 1(f)(2) of such Code is 
        amended by inserting ``and the reductions under paragraph (8) 
        in the rates of tax'' before the period.
            (3) The heading for subsection (f) of section 1 of such 
        Code is amended by inserting ``Rate Reductions;'' before 
        ``Adjustments''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

       TITLE II--INCENTIVE FOR PURCHASE OF AMERICAN-MADE PROPERTY

SEC. 201. DEDUCTION FOR GENERAL SALES TAXES ON AMERICAN-MADE TANGIBLE 
              PERSONAL PROPERTY.

    (a) In General.--Subsection (a) of section 164 of the Internal 
Revenue Code of 1986 (relating to deduction for taxes) is amended by 
inserting after paragraph (5) the following new paragraph:
            ``(6) State and local general sales taxes imposed in 
        respect of qualified sales at retail of American-made 
        property.''
    (b) Definitions.--Subsection (b) of section 164 of such Code is 
amended by adding at the end thereof the following new paragraph:
            ``(5) Definitions relating to general sales taxes.--For 
        purposes of subsection (a)(6)--
                    ``(A) Qualified sales.--The term `qualified sale' 
                means any sale of property if the price (including 
                taxes and shipping (if any)) paid by the taxpayer for 
                such property and all other American-made property 
                purchased with such property in the same transaction 
                exceeds $500.
                    ``(B) American-made property.--The term `American-
                made property' means tangible personal property more 
                than 50 percent of the cost of which is attributable to 
                value added in the United States.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

               TITLE III--SURFACE TRANSPORTATION PROGRAMS

SEC. 301. OBLIGATION CEILING.

    Section 1002 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 104 note; 105 Stat. 1916-1918) is repealed.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR HIGHWAY PROGRAMS.

    Section 1003(a) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 1918-1922) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, and 1999'';
            (2) in paragraph (2)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, and 1999'';
            (3) in paragraph (3)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, and 1999'';
            (4) in paragraph (4)--
                    (A) by striking ``and'' the second place it 
                appears; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, and 1999'';
            (5) in paragraph (5)--
                    (A) by striking ``and''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``each of fiscal years 1997, 1998, and 1999'';
            (6) in paragraph (6)(A) by striking ``and 1997'' and 
        inserting ``1997, 1998, and 1999'';
            (7) in paragraph (6)(B) by striking ``and 1997'' and 
        inserting ``, 1997, 1998, and 1999'';
            (8) in paragraph (6)(C) by striking ``and 1997'' and 
        inserting ``, 1997, 1998, and 1999'';
            (9) in paragraph (7) by striking ``and 1997'' and inserting 
        ``1997, 1998, and 1999''; and
            (10) in paragraph (8) by striking ``and 1997'' and 
        inserting ``1997, 1998, and 1999''.

SEC. 303. DONOR STATE BONUS AMOUNTS.

    Section 1013(c)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 157 note; 105 Stat. 1940) is amended 
by adding at the end the following new subparagraphs:
                    ``(G) For fiscal year 1998 $514,000,000.
                    ``(H) For fiscal year 1999 $514,000,000.''.

SEC. 304. APPORTIONMENT ADJUSTMENTS.

    (a) Hold Harmless.--Section 1015(a)(1) of the Intermodal Surface 
Transportation Efficiency Act of 1991 (23 U.S.C. 104 note; 105 Stat. 
1943) is amended by striking ``1997'' and inserting ``1999''.
    (b) 90-Percent of Payment Adjustments.--Section 1015(b)(1) of such 
Act is amended by striking ``1997'' and inserting ``1999''.
    (c) Authorization of Appropriations.--Section 1015(e) of such Act 
is amended by striking ``1997'' and inserting ``1999''.

SEC. 305. SET-ASIDE FOR 4R PROJECTS.

    Section 118(c)(2)(A) of title 23, United States Code, is amended by 
striking ``fiscal year 1997'' and inserting ``each of fiscal years 
1997, 1998, and 1999''.

SEC. 306. DISCRETIONARY BRIDGE PROGRAM.

    Section 144(g)(1) of title 23, United States Code, is amended by 
striking ``and 1997'' each place it appears and inserting ``1997, 1998, 
and 1999''.

SEC. 307. NATIONAL HIGH-SPEED GROUND TRANSPORTATION PROGRAMS.

    Section 1036(d)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (105 Stat. 1986) is amended--
            (1) in subparagraph (A) by striking ``fiscal year 1997'' 
        and inserting ``each of fiscal years 1997, 1998, and 1999''; 
        and
            (2) in subparagraph (B) by striking ``and 1997'' and 
        inserting ``1997, 1998, and 1999''.

SEC. 308. HIGHWAY TIMBER BRIDGE PROGRAM.

    Section 1039(a) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 144 note; 105 Stat. 1991) is amended by striking 
``and 1997'' and inserting ``1997, 1998, and 1999''.

SEC. 309. HIGHWAY USE TAX EVASION PROJECTS.

    Section 1040(f)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992-1993) is 
amended by striking ``and 1997'' and inserting ``1997, 1998, and 
1999''.

SEC. 310. SCENIC BYWAYS PROGRAM.

    Section 1047(d) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1998) is amended by striking 
``and 1997'' and inserting ``1997, 1998, and 1999''.

SEC. 311. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.

    Section 1064(c) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 129 note; 105 Stat. 2005) is amended by striking 
``and 1997'' and inserting ``1997, 1998, and 1999''.

SEC. 312. HIGHWAY SAFETY AUTHORIZATION OF APPROPRIATIONS.

    Section 2005 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2079) is amended--
            (1) in paragraph (1) by striking ``and 1997'' and inserting 
        ``1997, 1998, and 1999''; and
            (2) in paragraph (2) by striking ``1997'' and inserting 
        ``1999''.

SEC. 313. HIGHWAY SAFETY OBLIGATION CEILINGS.

    Section 2009 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2080) is amended by striking subsections (a) and 
(b) and inserting the following:
    ``Sums authorized to be appropriated by this title and the 
amendments made by this title shall not be subject to any obligation 
limitation.''.

SEC. 314. FEDERAL TRANSIT ACT AUTHORIZATIONS.

    Section 5338 of title 49, United States Code, is amended--
            (1) in subsection (a)(1)(E) by striking ``the fiscal year 
        ending September 30, 1997'' and inserting ``each of fiscal 
        years 1997, 1998, and 1999''; and
            (2) in subsection (b)(1)(E) by striking ``the fiscal year 
        ending September 30, 1997'' and inserting ``each of fiscal 
        years 1997, 1998, and 1999''.

SEC. 315. REDUCTION IN FEDERAL TRANSIT ACT AUTHORIZATIONS FOR BUDGET 
              COMPLIANCE.

    Section 3038 of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2138) is repealed.

SEC. 316. MOTOR CARRIER SAFETY GRANT PROGRAM.

    Section 31104(a)(5) of title 49, United States Code, is amended by 
striking ``the fiscal year ending September 30, 1997'' and inserting 
``each of fiscal years 1997, 1998, and 1999''.

SEC. 317. 2-YEAR EXTENSION OF HIGHWAY TRUST FUND EXPENDITURES.

    Subsections (c)(1) and (d)(3) of section 9503 of the Internal 
Revenue Code of 1986, as amended by this Act, are each amended by 
striking ``1997'' and inserting ``1999''.

                  TITLE IV--RELIEF FROM CREDIT CRUNCH

SEC. 401. LOOSENING OF REQUIREMENTS ON LOAN LOSS RESERVES ENCOURAGED.

    (a) Findings.--The Congress hereby finds that--
            (1) the economy of the United States has been in a 
        sustained period of slow growth;
            (2) credit for commercial and consumer loans and leases has 
        become more difficult to obtain over the past three years, 
        resulting in a ``credit crunch'';
            (3) the banking industry has adopted a cautious credit 
        policy in response to the state of the economy and the problems 
        experienced by the savings and loan industry;
            (4) the Federal Reserve has lowered its reserve 
        requirements on member banks for both checking and savings 
        deposits over the past two years in an effort to stimulate the 
        economy, with only moderate success; and
            (5) the loosening of the requirements on loan loss reserves 
        by State banking authorities and the appropriate Federal 
        banking agencies, as that term is defined in section 3(q) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), might 
        help stimulate the economy.
    (b) Declaration.--It is the sense of the Congress that--
            (1) the current ``credit crunch'' should be eased by making 
        it easier for businesses and individuals to obtain loans and 
        leases; and
            (2) State banking authorities and the appropriate Federal 
        banking agencies, as that term is defined in section 3(q) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), should 
        more sensibly apply the requirements on loan loss reserves so 
        as not to punish or restrain responsible borrowers.

                   TITLE V--CAP ON FEDERAL EMPLOYMENT

SEC. 501. CAP ON FEDERAL EMPLOYMENT.

    (a) Employment Cap.--Notwithstanding any other provision of law, 
the total number of individuals employed by the Federal Government may 
not exceed the number of individuals employed by the Federal Government 
on the date of the enactment of this Act.
    (b) Rescission of Appropriations.--Notwithstanding any other 
provision of law, there are hereby rescinded all unobligated amounts 
that were appropriated before the date of the enactment of this Act to 
pay salary, wages, or benefits for a position in the employment of the 
Federal Government that is not filled on that date.

            TITLE VI--REDUCTION IN FEDERAL OVERHEAD EXPENSES

SEC. 601. REDUCTION OF AMOUNTS AVAILABLE TO FEDERAL AGENCIES FOR PAYING 
              OVERHEAD EXPENSES.

    (a) Rescission of Appropriations.--Notwithstanding any other 
provision of law, there is hereby rescinded an amount equal to 10 
percent of all unobligated amounts that were appropriated before the 
date of the enactment of this Act to pay overhead expenses of any 
Federal agency.
    (b) Reduction in Authorizations.--The amount authorized to be 
appropriated for any fiscal year to pay overhead expenses of any 
Federal agency is hereby reduced by 10 percent.
    (c) Overhead Expenses Defined.--For purposes of this section, the 
term ``overhead expenses'' means any expense incurred by a Federal 
agency, except--
            (1) the payment of salaries and wages of employees of the 
        agency; and
            (2) direct spending (as that term is defined in section 250 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985).