II

103D CONGRESS

1ST SESSION S. 154

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

deficit reduction.

IN THE SENATE OF THE UNITED STATES

JANUARY 21 (legislative day, JANUARY 5), 1993

Mr. GRAMM introduced the following bill; which was read twice and referred

jointly pursuant to the order of August 4, 1977, to the Committees on

the Budget and Governmental Affairs, with instructions that if one committee reports, the other committee have thirty days to report or be discharged

A BILL

To insure 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’’.

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 (as amended by the Budget Enforce-
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1 ment Act of 1990) is amended by adding after section 606

2 the following new section:

3 ‘‘SEC. 606A. DETERMINATION OF PEACE DIVIDEND.

4 ‘‘(a) FISCAL YEAR 1993.—

5 ‘‘(1) IN GENERAL.—If pursuant to section

6 251(a)(7) of the Balanced Budget and Emergency

7 Deficit Control Act of 1985 outlays in the defense

8 category for fiscal year 1993 are estimated to be

9 below the discretionary spending limit for such out10 lays, the difference shall be used to reduce the defi11 cit and to increase the personal income tax exemp12 tion as provided in subsection (c).

13 ‘‘(2) ADJUSTMENT TO DISCRETIONARY SPEND14 ING LIMITS.—If outlays for the defense category in

15 fiscal year 1993 are estimated to be below the dis16 cretionary spending limit for such outlays, the dis17 cretionary spending limits calculated pursuant to

18 section 251(b) of the Balanced Budget and Emer19 gency Deficit Control Act of 1985 shall be adjusted

20 for the difference.

21 ‘‘(b) FISCAL YEARS 1994 AND THEREAFTER.—

22 ‘‘(1) IN GENERAL.—If outlays in the defense

23 category as defined in section 250(c)(4) of the Bal24 anced Budget and Emergency Deficit Control Act of

25 1985 for each fiscal year beginning with fiscal year
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1 1994 are below the defense baseline for such fiscal

2 year as determined under paragraph (3), the dif3 ference shall be used to reduce the deficit and in4 crease the personal exemption as provided in sub5 section (c).

6 ‘‘(2) ADJUSTMENT TO DISCRETIONARY SPEND7 ING LIMITS.—For fiscal year 1994 or 1995 if the de8 fense category outlays for such fiscal year are esti9 mated to be below the defense baseline for such fis10 cal year, the discretionary spending limits shall be

11 adjusted by the difference.

12 ‘‘(3) BASELINE.—(A) For fiscal year 1994 or

13 1995, the applicable baseline for defense outlays

14 shall be the total estimated discretionary outlays for

15 the fiscal year multiplied by the ratio of the final de16 fense outlay cap for fiscal year 1993 divided by the

17 final total discretionary cap for fiscal year 1993.

18 ‘‘(4) FISCAL YEAR 1996 AND THEREAFTER.—

19 Beginning with fiscal year 1996 and each fiscal year

20 thereafter, the applicable defense outlay baseline

21 shall be the Congressional Budget Office baseline in22 flator multiplied by the defense outlay level for the

23 previous fiscal year.

24 ‘‘(c) ALLOCATION OF ADJUSTMENTS.—The adjust25 ments in the discretionary spending limits for outlays de-
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1 scribed in subsections (a) and (b) shall be allocated in the

2 following manner:

3 ‘‘(1) DEFICIT REDUCTION.—The maximum def4 icit amount calculated pursuant to section 253 of

5 the Balanced Budget and Emergency Deficit Control

6 Act of 1985 for any of fiscal years 1993 through

7 1995 shall be reduced by an amount equal to the

8 change in the estimated deficit resulting from such

9 reduced outlays and the reduction in revenue de10 scribed in paragraph (2).

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

12 the Treasury shall increase the personal exemption

13 amount for individuals as determined under section

14 151 of the Internal Revenue Code of 1986 by an

15 amount estimated to reduce receipts in the calendar

16 year beginning during such fiscal year by an amount

17 equal to one-half of the difference (peace dividend)

18 described in subsections (a) or (b) with respect to

19 defense outlays for that fiscal year.

20 ‘‘(d) PERMITTING OF PEACE DIVIDEND INVEST21 MENT.—Legislation affecting receipts as a result of the

22 requirements of section (c)(2) shall not be considered leg23 islation that increases the deficit for purposes of section

24 252 of the Balanced Budget and Emergency Deficit Con25 trol Act of 1985.
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1 ‘‘(e) POINT OF ORDER.—

2 ‘‘(1) It shall not be in order in the Senate to

3 consider any bill, resolution, amendment, or con4 ference report that would reduce defense spending

5 below the spending limit for the defense category as

6 defined in section 250(c)(4) of the Balanced Budget

7 and Emergency Deficit Control Act of 1985 if such

8 bill, resolution, amendment, or conference report

9 does not allocate the total amount of reduced new

10 budget authority or outlays between deficit reduction

11 and increases in the personal income tax exemption

12 as provided in this section.

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

14 of defense spending for a fiscal year shall be deter15 mined on the basis of estimates made by the Com16 mittee on the Budget.’’.

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

18 904(d) of the Congressional Budget Act of 1974 (as

19 amended by the Budget Enforcement Act of 1990) is

20 amended by striking ‘‘and 606(c)’’ and inserting ‘‘606(c),

21 and 606A’’.

Æ