I

107TH CONGRESS

1ST SESSION H. R. 927

To provide for a tax reduction in the case of low economic growth.

IN THE HOUSE OF REPRESENTATIVES

MARCH 7, 2001

Mr. OBEY (for himself, Mr. MORAN of Virginia, and Mr. FRANK) introduced

the following bill; which was referred to the Committee on Ways and

Means, and in addition to the Committee on the Budget, 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 provide for a tax reduction in the case of low economic

growth.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Standby Authority to

5 Fight Economic Recession Tax Cut Act of 2001’’.

6 SEC. 2. TAX REDUCTION IN THE EVENT OF LOW GROWTH.

7 (a) LOW-GROWTH REPORT.—

8 (1) IN GENERAL.—At any time, the Director of

9 the Office of Management and Budget (hereafter in
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1 this section referred to as the ‘‘Director’’) may no2 tify the President and the Congress if the Direc3 tor—

4 (A) determines that paragraph (2) was

5 met for the 2 quarters preceding the quarter

6 during which the notification is given, or

7 (B)(i) projects that paragraph (2) will be

8 met for the quarter during which the notifica9 tion is given, and

10 (ii) determines that such paragraph was

11 met for the preceding quarter.

12 (2) REQUIREMENT.—This paragraph is met if

13 either—

14 (A) economic growth as measured by the

15 change in real Gross Domestic Product (GDP)

16 at an annual rate is estimated to be less than

17 1.5 percent, or

18 (B) there is a decrease in the number of

19 employed individuals.

20 Nothing in this section shall be construed as pre21 venting the Director from taking into account esti22 mates which are subject to revision.

23 (b) PRESIDENTIAL AUTHORIZATION OF TEMPORARY

24 TAX REDUCTIONS.—
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1 (1) PRESIDENTIAL DECLARATION.—After noti2 fication under subsection (a), the President may

3 issue a declaration that temporary income tax reduc4 tions are required for a specified calendar year to

5 provide a quick and necessary fiscal stimulus to the

6 economy. Any such declaration shall be transmitted

7 to the Congress.

8 (2) TEMPORARY TAX MODIFICATIONS.—If the

9 President transmits a declaration under paragraph

10 (1) to the Congress, effective for taxable years be11 ginning in the calendar year specified in such dec12 laration—

13 (A) the rates applicable to the first income

14 bracket in the tax tables contained in section 1

15 of the Internal Revenue Code of 1986 shall be

16 reduced by a number of percentage points (not

17 to exceed 3 percentage points) specified in such

18 declaration,

19 (B) the amounts set fourth as tax in such

20 tables shall be adjusted to reflect such rate re21 duction, and

22 (C) the withholding tables or procedures

23 prescribed under section 3402(a) of such Code

24 shall be modified as specified in such declara-
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1 tion (including having different withholding

2 rates apply to portions of a calendar year).

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

4 Any reduction or increase in receipts resulting from

5 section 2 of this Act shall not be considered for any pur6 pose under the Balanced Budget and Emergency Deficit

7 Control Act of 1985.

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