I

103D CONGRESS

1ST SESSION H. R. 865

To ensure that any peace dividend is invested in America’s families and

deficit reduction.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1993

Mr. SOLOMON introduced the following bill; which was referred jointly to the

Committees on Government Operations, Rules, and Ways and Means

A BILL

To ensure that any peace dividend is invested in America’s

families and deficit reduction.

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 ‘‘Ronald Reagan Peace

5 Dividend Investment Act of 1993’’.

6 SEC. 2. AMENDMENTS TO THE CONGRESSIONAL BUDGET

7 ACT OF 1974.

8 (a) IN GENERAL.—Title VI of the Congressional

9 Budget Act of 1974 is amended by adding after section

10 606 the following new section:
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1 ‘‘SEC. 606A. ALLOCATION OF REDUCTIONS IN DISCRE2 TIONARY DEFENSE SPENDING.

3 ‘‘(a) IN GENERAL.—If pursuant to section 251(a)(7)

4 of the Balanced Budget and Emergency Deficit Control

5 Act of 1985 outlays within accounts under major func6 tional category 050 (defense programs) for fiscal year

7 1994 or 1995 are estimated to be below the such outlays

8 for fiscal year 1993, the difference shall be used to reduce

9 the deficit and to increase the personal income tax exemp10 tion as provided in subsection (c).

11 ‘‘(b) ADJUSTMENT TO DISCRETIONARY SPENDING

12 LIMITS.—The amounts by which aggregate outlays for de13 fense programs (functional category 050) in fiscal year

14 1994 or 1995 are estimated to be below such outlays for

15 fiscal year 1993, then the discretionary spending limits

16 calculated pursuant to section 251(b) of the Balanced

17 Budget and Emergency Deficit Control Act of 1985 shall

18 be adjusted for this difference as follows:

19 ‘‘(1) OUTLAY ADJUSTMENT.—The adjustment

20 for fiscal years 1994 and 1995 shall be an amount

21 equal to such difference in such fiscal years.

22 ‘‘(2) BUDGET AUTHORITY ADJUSTMENT.—The

23 adjustment for fiscal year 1994 shall be an amount

24 equal to the outlay difference for fiscal year 1993 di25 vided by the aggregate spend out rate for the de26 fense discretionary appropriations enacted for fiscal
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1 year 1993 multiplied by the baseline inflator for fis2 cal year 1994. The adjustment for fiscal year 1995

3 shall be an amount equal to the adjustment to the

4 discretionary spending limit for budget authority for

5 fiscal year 1994 multiplied by the baseline inflator

6 for fiscal year 1995.

7 ‘‘(3) DEFINITION.—For purposes of this sub8 section, the term ‘baseline inflator’ has the meaning

9 given to it in section 251(b)(1)(B)(ii) of the Bal10 anced Budget and Emergency Deficit Control Act of

11 1985.

12 ‘‘(c) ALLOCATION OF ADJUSTMENTS.—The adjust13 ments in the discretionary spending limits for outlays de14 scribed in subsection (b)(1) shall be allocated in the follow15 ing manner:

16 ‘‘(1) DEFICIT REDUCTION.—The maximum def17 icit amount calculated pursuant to section 253 of

18 the Balanced Budget and Emergency Deficit Control

19 Act of 1985 for any of fiscal years 1994 and 1995

20 shall be reduced by an amount equal to the change

21 in the estimated deficit resulting from such reduced

22 outlays and the reduction in revenue described in

23 paragraph (2).

24 ‘‘(2) PERSONAL EXEMPTION.—The Secretary of

25 the Treasury shall increase the personal exemption
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1 amount for individuals as determined under section

2 151 of the Internal Revenue Code of 1986 by an

3 amount estimated to reduce receipts in the calendar

4 year beginning during such fiscal year by an amount

5 equal to one-half of the adjustment described in sub6 section (b)(1) to the discretionary spending limit for

7 outlays for that fiscal year.

8 ‘‘(d) PERMITTING OF PEACE DIVIDEND INVEST9 MENT.—Legislation affecting receipts as a result of the

10 requirements of section (c)(2) shall not be considered leg11 islation that increases the deficit for purposes of section

12 252 of the Balanced Budget and Emergency Deficit Con13 trol Act of 1985.

14 ‘‘(e) ADJUSTMENTS TO CONGRESSIONAL BUDGET

15 TOTALS.—The reductions in the maximum deficit amount

16 and revenues required by subsection (c) shall be reflected

17 in the concurrent resolution on the budget and the com18 mittee spending allocations for fiscal years 1994 and

19 1995.

20 ‘‘(f) POINT OF ORDER.—

21 ‘‘(1) It shall not be in order in the House of

22 Representatives or the Senate to consider any bill,

23 resolution, amendment, or conference report that

24 would reduce defense spending below its fiscal year

25 1993 level if such bill, resolution, amendment, or
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1 conference report does not allocate the total amount

2 of reduced new budget authority or outlays between

3 deficit reduction and increases in the personal in4 come tax exemption as provided in this section.

5 ‘‘(2) For purposes of this subsection, the levels

6 of defense spending for a fiscal year shall be deter7 mined on the basis of estimates made by the Com8 mittee on the Budget.’’.

9 (b) POINT OF ORDER.—The last sentence of section

10 904(d) of the Congressional Budget Act of 1974 is amend11 ed by striking ‘‘and 606(c)’’ and inserting ‘‘606(c), and

12 606A’’.

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