II

103D CONGRESS

1ST SESSION S. 1524

To repeal the retroactive application of the income, estate, and gift tax

rates made by the budget reconciliation act and reduce administrative

expenses for agencies by $3,000,000,000 for each of the fiscal years

1994, 1995, and 1996.

IN THE SENATE OF THE UNITED STATES

OCTOBER 7 (legislative day, SEPTEMBER 27), 1993

Mrs. HUTCHISON (for herself, Mr. BROWN, Mr. BURNS, Mr. COATS, Mr.

COVERDELL, Mr. DOLE, Mr. FAIRCLOTH, Mr. GRAMM, Mr. HATCH, Mr.

HELMS, Mrs. KASSEBAUM, Mr. KOHL, Mr. LIEBERMAN, Mr. LOTT, Mr.

MCCAIN, Mr. NICKLES, Mr. PRESSLER, Mr. SHELBY, Mr. SPECTER, Mr.

STEVENS, Mr. THURMOND, and Mr. WALLOP) introduced the following

bill; which was read twice and referred to the Committee on Finance

A BILL

To repeal the retroactive application of the income, estate,

and gift tax rates made by the budget reconciliation

act and reduce administrative expenses for agencies by

$3,000,000,000 for each of the fiscal years 1994, 1995,

and 1996.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. REPEAL OF RETROACTIVE APPLICATION OF IN2 COME, ESTATE, AND GIFT TAX RATE IN3 CREASES.

4 (a) INCOME TAX RATES.—

5 (1) IN GENERAL.—Section 1 of the Internal

6 Revenue Code of 1986 (relating to tax imposed) is

7 amended by adding at the end the following new

8 subsection:

9 ‘‘(i) SPECIAL RULES FOR TAXABLE YEARS BEGIN10 NING IN 1993.—In the case of taxable years beginning in

11 calendar year 1993, each of the tables contained in sub12 sections (a), (b), (c), (d), and (e) shall be applied—

13 ‘‘(1) by substituting ‘32.97 percent’ for ‘36 per14 cent’,

15 ‘‘(2) by substituting ‘34.39 percent’ for ‘39.6

16 percent’, and

17 ‘‘(3) by substituting for the dollar amount of

18 tax in the last rate bracket the dollar amount deter19 mined under such table by making the substitution

20 described in paragraph (1).’’.

21 (2) CONFORMING AMENDMENTS.—

22 (A) Sections 531 and 541 of the Internal

23 Revenue Code of 1986 are each amended by in24 serting ‘‘(34.39 percent in the case of taxable

25 years beginning in calendar year 1993)’’ after

26 ‘‘39.6 percent’’.
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1 (B) Paragraph (1) of section 55(b) of such

2 Code is amended by adding at the end the fol3 lowing new subparagraph:

4 ‘‘(C) SPECIAL RULES FOR 1993.—In the

5 case of any taxable year beginning in the cal6 endar year 1993, subparagraph (A)(i) shall be

7 applied by substituting—

8 ‘‘(i) ‘24.79 percent’ for ‘26 percent’ in

9 subclause (I), and

10 ‘‘(ii) ‘25.58 percent’ for ‘28 percent’

11 in subclause (II).’’

12 (C) Section 13201 of the Omnibus Budget

13 Reconciliation Act of 1993 is amended by strik14 ing subsection (d).

15 (3) EFFECTIVE DATE.—The amendments made

16 by this subsection shall apply to taxable years begin17 ning after December 31, 1992.

18 (b) ESTATE AND GIFT TAX RATES.—

19 (1) IN GENERAL.—Subsection (c) of section

20 13208 of the Omnibus Budget Reconciliation Act of

21 1993 is amended by striking ‘‘December 31, 1992’’

22 and inserting ‘‘August 10, 1993’’.

23 (2) EFFECTIVE DATE.—The amendment made

24 by this subsection shall take effect as if included in
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1 the enactment of the Omnibus Budget Reconciliation

2 Act of 1993.

3 SEC. 2. REDUCTION IN ADMINISTRATIVE EXPENSES.

4 (a) BUDGET OBLIGATIONS.—

5 (1) IN GENERAL.—The amount obligated by all

6 departments and agencies for expenses during fiscal

7 years 1994, 1995, and 1996, shall be reduced by an

8 amount sufficient to result in a reduction of

9 $3,000,000,000 in outlays for expenses during each

10 of the fiscal years 1994, 1995, and 1996. The Direc11 tor of the Office of Management and Budget shall

12 establish obligation limits for each agency and de13 partment in order to carry out the provisions of this

14 section.

15 (2) DISCRETIONARY SPENDING LIMITS.—The

16 discretionary spending limits for fiscal years 1994

17 through 1998 set forth in section 601(a)(2) of the

18 Congressional Budget Act of 1974 shall each be re19 duced by $3,000,000,000 in fiscal year 1994,

20 $6,000,000,000 in fiscal year 1995, and

21 $9,000,000,000 in each of the fiscal years 1996,

22 1997, and 1998.

23 (3) NO NEGATION OF GENERAL AUTHORITY OF

24 DEPARTMENT HEAD WITHOUT SPECIFIC REF25 ERENCE.—Notwithstanding any other provision of
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1 this Act or any other Act (regardless of its date of

2 enactment) that purports to direct the head of a de3 partment or agency to obligate an amount for sala4 ries and expenses for the purpose of obtaining a par5 ticular service or good or to prohibit the head of a

6 department or agency from obligating such an

7 amount for any particular service or good, that law

8 shall not be construed to impair or otherwise affect

9 the duty and the discretion of the head of a depart10 ment or agency to make determinations concerning

11 which particular services of persons and which par12 ticular goods will be obligated for in the best interest

13 of performing all of the duties assigned to the de14 partment or agency, unless that provision—

15 (A) makes specific reference to this para16 graph; and

17 (B) states that it is the intent of Congress

18 in that provision to negate the duty and discre19 tion of the head of that department or agency

20 so to make such determinations.

21 (b) DEFINITION.—For purposes of this section the

22 term ‘‘expenses’’ means the object classes identified by the

23 Office of Management and Budget in Object Classes 21–

24 26 as follows:

25 (1) 21.0: Travel and Transportation of Persons.
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1 (2) 22.0: Transportation of Things.

2 (3) 23.2: Rental Payments to Others.

3 (4) 23.3: Communications, Utilities, and Misc.

4 (5) 24.0: Printing and Reproduction.

5 (6) 25.1: Consulting Services.

6 (7) 25.2: Other Services.

7 (8) 26.0: Supplies and Materials.

8 Such term shall not include the expenses of the Depart9 ment of Defense.

Æ