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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2934 Introduced in House (IH)]

  2d Session
                                H. R. 2934

          To eliminate certain Federal programs and subsidies.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 1996

  Mr. Blute introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Agriculture, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
          To eliminate certain Federal programs and subsidies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Taxpayer Savings 
Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Market promotion program.
Sec. 3. Export enhancement program.
Sec. 4. Animal damage control.
Sec. 5. Termination of tax subsidies for ethanol.
Sec. 6. Termination of price support and production adjustment programs 
                            for sugar beets and sugarcane.
Sec. 7. Termination of peanut quota and price support programs.

SEC. 2. MARKET PROMOTION PROGRAM.

    (a) In General.--Section 203 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5623) is repealed.
    (b) Conforming Amendments.--
            (1) Section 211 of the Act (7 U.S.C. 5641) is amended by 
        striking subsection (c) .
            (2) Section 402(a)(1) of the Act (7 U.S.C. 5662(a)(1)) is 
        amended by striking ``203,''.
            (3) Section 1302 of the Omnibus Budget Reconciliation Act 
        of 1993 (Public Law 103-66; 7 U.S.C. 5623 note) is repealed.

SEC. 3. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5651) is repealed.
    (b) Conforming Amendments.--
            (1) Section 103(d)(2) of the Act (7 U.S.C. 5603(d)(2)) is 
        amended by striking ``(as amended) and the program under 
        section 301''.
            (2) The title heading of title III of the Act (7 U.S.C. 
        prec. 5651) is amended to read as follows:

           ``TITLE III--RELIEF FROM UNFAIR TRADE PRACTICES''.

            (3) Section 303 of the Act (7 U.S.C. 5653) is amended by 
        striking ``, such as that established under section 301,''.
             (4) Section 401 of the Act (7 U.S.C. 5661) is amended by 
        striking ``sections 201, 202, and 301'' each place it appears 
        in subsections (a) and (b) and inserting ``sections 201 and 
        202''.
            (5) Section 402(a)(1) of the Act (7 U.S.C. 5662(a)(1)) (as 
        amended by section 301(b)(2)) is further amended by striking 
        ``sections 201, 202, and 301'' and inserting ``sections 201 and 
        202''.

SEC. 4. ANIMAL DAMAGE CONTROL.

    The last proviso of the matter under the heading ``Animal and Plant 
Health Inspection Service'' of title I of the Rural Development, 
Agriculture, and Related Agencies Appropriations Act, 1986 (Public Law 
100-202; 101 Stat. 1329-331; 7 U.S.C. 426c) is amended by striking ``: 
Provided further, That hereafter,'' and all that follows through 
``Animal Damage Control activities''.

SEC. 5. TERMINATION OF TAX SUBSIDIES FOR ETHANOL.

    (a) Repeal of Credits--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by striking 
section 40 (relating to alcohol used as fuel).
    (b) Conforming Terminations of Other Incentives for Ethanol Fuel.--
            (1) Repeal of reduced rate on ethanol fuel produced other 
        than from petroleum or natural gas.--Subsection (b) of section 
        4041 of such Code is amended to read as follows:
    ``(b) Exemption for Off-Highway Business Use.--
            ``(1) In general.--No tax shall be imposed by subsection 
        (a) or (d)(1) on liquids sold for use or used in an off-highway 
        business use.
            ``(2) Tax where other use.--If a liquid on which no tax was 
        imposed by reason of paragraph (1) is used otherwise than in an 
        off-highway business use, a tax shall be imposed by paragraph 
        (1)(B), (2)(B), or (3)(A)(ii) of subsection (a) (whichever is 
        appropriate) and by the corresponding provision of subsection 
        (d)(1) (if any).
            ``(3) Off-highway business use defined.--For purposes of 
        this subsection, the term `off-highway business use' has the 
        meaning given to such term by section 6421(e)(2); except that 
        such term shall not, for purposes of subsection (a)(1), include 
        use in a diesel-powered train.''
            (2) Repeal of reduced rate on ethanol fuel produced from 
        natural gas.--Subsection (m) of section 4041 of such Code is 
        amended--
                    (A) by striking ``or ethanol'' each place it 
                appears (including the heading of paragraph (2)), and
                    (B) by striking ``, ethanol, or other alcohol'' in 
                paragraph (2) and inserting ``or other alcohol (other 
                than ethanol)''.
    (c) Conforming Amendments to Excise Taxes; Fuel Alcohol Taxed in 
Same Manner as Other Motor Fuels.--
            (1) In general.--Paragraph (1) of section 4083(a) of such 
        Code (defining taxable fuel) is amended by striking ``and'' at 
        the end of subparagraph (A), by striking the period at the end 
        of subparagraph (B) and inserting ``, and'', and by adding at 
        the end the following:
                    ``(C) fuel alcohol.''
            (2) Fuel alcohol.--Subsection (a) of section 4083 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(4) Fuel alcohol.--The term `fuel alcohol' means any 
        alcohol (including ethanol and methanol)--
                    ``(A) which is produced other than from petroleum, 
                natural gas, or coal (including peat), and
                    ``(B) which is withdrawn from the distillery where 
                produced free of tax under chapter 51 by reason of 
                section 5181 or so much of section 5214(a)(1) as 
                relates to fuel use.''
            (3) Rate of tax.--Clause (i) of section 4081(a)(2)(A) of 
        such Code is amended by inserting ``or fuel alcohol'' after 
        ``gasoline''.
            (4) Special rules for imposition of tax.--Paragraph (1) of 
        section 4081(a) of such Code is amended by adding at the end 
        the following new subparagraph:
                    ``(C) Special rules for fuel alcohol.--In the case 
                of fuel alcohol--
                            ``(i) the distillery where produced shall 
                        be treated as a refinery, and
                            ``(ii) subparagraph (B) shall be applied by 
                        including transfers by truck or rail in excess 
                        of such minimum quantities as the Secretary 
                        shall prescribe.''
            (5) Repeal of reduced rates on alcohol fuels.--
                    (A) Section 4041 of such Code is amended by 
                striking subsection (k).
                    (B) Section 4081 of such Code is amended by 
                striking subsection (c).
                    (C) Section 4091 of such Code is amended by 
                striking subsection (c).
            (6) Conforming amendments.--
                    (A) Paragraph (2) of section 4041(a) of such Code 
                is amended by adding at the end the following: ``No tax 
                shall be imposed by this paragraph on the sale or use 
                of any liquid if tax was imposed on such liquid under 
                section 4081 and the tax thereon was not credited or 
                refunded.''
                    (B) Section 6427 of such Code is amended by 
                striking subsection (f).
                    (C) Subsection (i) of section 6427 of such Code is 
                amended by striking paragraph (3).
                    (D) Paragraph (2) of section 6427(k) of such Code 
                is amended by striking ``(3)''.
                    (E)(i) Paragraph (1) of section 6427(l) of such 
                Code is amended by striking ``or'' at the end of 
                subparagraph (A), by redesignating subparagraph (B) as 
                subparagraph (C), and by inserting after subparagraph 
                (A) the following new subparagraph:
                    ``(B) any fuel alcohol (as defined in section 4083) 
                on which tax has been imposed by section 4081, or''.
                    (ii) Paragraph (2) of section 6427(l) of such Code 
                is amended by striking ``and'' at the end of 
                subparagraph (A), by redesignating subparagraph (B) as 
                subparagraph (C), and by inserting after subparagraph 
                (A) the following new subparagraph:
                    ``(B) in the case of fuel alcohol (as so defined), 
                any use which is exempt from the tax imposed by section 
                4041(a)(2) other than by reason of a prior imposition 
                of tax, and''.
                    (iii) The heading of subsection (l) of section 6427 
                of such Code is amended by inserting ``, Fuel 
                Alcohol,'' after ``Diesel Fuel''.
                    (F) Sections 9503(b)(1)(E) and 9508(b)(2) of such 
                Code are each amended by striking ``and diesel fuel'' 
                and inserting ``diesel fuel, and fuel alcohol''.
                    (G) Section 9502 of such Code is amended by 
                striking subsection (e) and by redesignating subsection 
                (f) as subsection (e).
                    (H) Subsection (e) of section 9502 of such Code (as 
                redesignated by subparagraph (I)) is amended by 
                striking paragraph (2) and by redesignating paragraph 
                (3) as paragraph (2).
                    (I) Subsection (b) of section 9503 of such Code is 
                amended by striking paragraph (5).
                    (J) Paragraph (3) of section 9503(f) of such Code 
                is amended to read as follows:
            ``(3) Partially exempt methanol or ethanol fuel.--In the 
        case of a rate of tax determined under section 4041(m), the 
        Highway Trust Fund financing rate is the excess (if any) of the 
        rate so determined over--
                    ``(A) 5.55 cents per gallon after September 30, 
                1993, and before October 1, 1995, and
                    ``(B) 4.3 cents per gallon after September 30, 
                1995.''
    (d) Technical and clerical amendments.--
            (1) Amendment to general business credit.--Subsection (b) 
        of section 38 of such Code is amended by striking paragraph (3) 
        and redesignating paragraphs (4) through (11) as paragraphs (3) 
        through (10), respectively.
            (2) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 of such Code is 
        amended by striking the item relating to section 40.
    (e) Effective Date.--The amendments made by this section shall 
apply to sales and uses after the expiration of the 90-day period 
beginning on the date of the enactment of this Act.
    (f) Floor Stock Taxes.--
            (1) Imposition of tax.--In the case of fuel alcohol which 
        is held on the applicable date by any person, there is hereby 
        imposed a floor stocks tax of 18.4 cents per gallon.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding, on the 
                applicable date, fuel alcohol to which the tax imposed 
                by paragraph (1) applies shall be liable for such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the date occurring 6 
                months after the applicable date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Applicable date.--The term ``applicable date'' 
                means the first day occurring after the expiration of 
                the 90-day period beginning on the date of the 
                enactment of this Act.
                    (B) Fuel alcohol.--The term ``fuel alcohol'' has 
                the meaning given such term by section 4083 of the 
                Internal Revenue Code of 1986, as amended by this 
                section.
                    (C) Held by a person.--Fuel alcohol 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).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or his delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to fuel alcohol held by any 
        person exclusively for any use to the extent a credit or refund 
        of the tax imposed by section 4081 of the Internal Revenue Code 
        of 1986 is allowable for such use.
            (5) Exception for fuel held in vehicle tank.--No tax shall 
        be imposed by paragraph (1) on fuel alcohol held in the tank of 
        a motor vehicle or motorboat.
            (6) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on fuel alcohol held on the applicable 
                date by any person if the aggregate amount of fuel 
                alcohol 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.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account fuel held by any 
                person which is exempt from the tax imposed by 
                paragraph (1) by reason of paragraph (4) or (5).
                    (C) Controlled groups.--For purposes of this 
                paragraph--
                            (i) 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 such Code; 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.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of clause (i) shall apply to a group of persons 
                        under common control where 1 or more of such 
                        persons is not a corporation.
            (7) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes imposed 
        by paragraph (1) to the same extent as if such taxes were 
        imposed by such section 4081.

SEC. 6. TERMINATION OF PRICE SUPPORT AND PRODUCTION ADJUSTMENT PROGRAMS 
              FOR SUGAR BEETS AND SUGARCANE.

    (a) Termination of Price Support Program.--
            (1) Price support levels for designated nonbasic 
        agricultural commodities.--Section 201(a) of the Agricultural 
        Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ``milk, 
        sugar beets, and sugarcane'' and inserting ``and milk''.
            (2) Sugar price support.--Section 206 of such Act (7 U.S.C. 
        1446g) is repealed.
            (3) Benefits.--Section 401(e) of such Act (7 U.S.C. 
        1421(e)) is amended--
                    (A) in paragraph (1), by striking ``(1)''; and
                    (B) by striking paragraph (2).
            (4) Personal liability of producers for deficiencies.--
        Section 405 of such Act (7 U.S.C. 1425) is amended--
                    (A) in subsection (a), by striking ``(a)''; and
                    (B) by striking subsection (b).
            (5) Powers of commodity credit corporation.--Section 5(a) 
        of the Commodity Credit Corporation Charter Act (7 U.S.C. 
        714c(a)) is amended by inserting ``(except for sugar beets and 
        sugarcane)'' after ``agricultural commodities''.
    (b) Termination of Acreage Allotments and Marketing Quotas.--
            (1) Termination.--Part VII of subtitle B of title III of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa-
        1359jj) is repealed.
            (2) Conforming Amendment.--Section 344(f)(2) of such Act (7 
        U.S.C. 1344(f)(2)) is amended by striking ``sugar cane for 
        sugar, sugar beets for sugar,''.
    (c) Conforming Amendment Regarding Prevention of Government 
Accumulation of Sugar.--Section 902 of the Food Security Act of 1985 (7 
U.S.C. 1446g note) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.
    (d) Conforming Amendment Regarding Section 32 Activities.--The 
second sentence of the first paragraph of section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c), is amended by inserting ``(other than 
sugar beets and sugarcane)'' after ``commodity'' the last place it 
appears.
    (e) Prohibition on Subsequent Provision of Price Support.--
            (1) Prohibition.--After the effective date of this Act, the 
        Secretary of Agriculture may not make price support available, 
        whether in the form of loans, payments, purchases, or other 
        operations, for crops of sugar beets or sugarcane by using the 
        funds of the Commodity Credit Corporation or under the 
        authority of any law.
            (2) Exception.--Notwithstanding paragraph (1), the 
        Secretary shall settle any outstanding loans under section 206 
        of the Agricultural Act of 1949 (7 U.S.C. 1446g) made before 
        the effective date of this Act.
    (f) Effect on Existing Liability.--The amendments made by this 
section shall not affect the liability of any person under any 
provision of law as in effect before the effective date of this Act.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 1996.

SEC. 7. TERMINATION OF PEANUT QUOTA AND PRICE SUPPORT PROGRAMS.

    (a) Marketing Quotas.--Part VI of subtitle B of title III of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating to 
peanuts, is repealed.
    (b) Price Support Levels.--The Agricultural Act of 1949 (7 U.S.C. 
1441 et seq.) is amended--
            (1) in section 101(b) (7 U.S.C. 1441(b)), by striking ``and 
        peanuts'';
            (2) in section 408(c) (7 U.S.C. 1428(c)), by striking 
        ``peanuts,''; and
            (3) by striking sections 108, 108A, and 108B, relating to 
        peanuts (7 U.S.C. 1445c through 1445c-3).
    (c) Prohibition on Subsequent Provision of Price Support.--
            (1) Prohibition.--After the effective date of this Act, the 
        Secretary of Agriculture may not make price support available, 
        whether in the form of loans, purchases, or other operations, 
        to peanut producers by using the funds of the Commodity Credit 
        Corporation or under the authority of any law.
            (2) Exception.--Notwithstanding paragraph (1), the 
        Secretary shall settle any outstanding loans under section 108B 
        of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) made before 
        the effective date of this Act.
    (d) Continued Liability of Producers.--An amendment made by this 
section shall not affect the liability of any person under any 
provision of law as in effect before the effective date of this Act.
    (e) Effect on Existing Liability.--The amendments made by this 
section shall not affect the liability of any person under any 
provision of law as in effect before the effective date of this Act.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 1996.
                                 <all>
HR 2934 IH----2
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