‘‘(D)(i) the term ‘CPI increase percentage’,
with respect to a base quarter or cost-of-living quar-
ter in any calendar year, means the percentage
(rounded to the nearest one-tenth of 1 percent) by
which the Consumer Price Index for that quarter (as
prepared by the Department of Labor) exceeds such
index for the most recent prior calendar quarter
which was a base quarter under subparagraph
(A)(ii) or, if later, the most recent cost-of-living
computation quarter under subparagraph (B);
‘‘(ii) if the Consumer Price Index (as prepared
by the Department of Labor) does not include the
national sales tax paid, then the term ‘CPI increase
percentage’ with respect to a base quarter or cost-
of-living quarter in any calendar year, means the
percentage (rounded to the nearest one-tenth of 1
percent) by which the product of—
‘‘(I) the Consumer Price Index for that
quarter (as prepared by the Department of
Labor); and
‘‘(II) the national sales tax factor,
exceeds such index for the most recent prior cal-
endar quarter which was a base quarter under sub-
paragraph (A)(ii) or, if later, the most recent cost-
of-living computation quarter under subparagraph
(B); and
‘‘(iii) for purposes of clause (ii), the ‘national
sales tax factor’ is equal to one plus the quotient
that is—
‘‘(I) the sales tax rate (as defined in sec-
tion 1 of title 26), divided by
‘‘(II) the quantity that is one minus the
sales tax rate.’’.
SEC. 9. COMPENSATING PAYMENTS TO CERTAIN PERSONS
ON FIXED INCOME.
(a) COMPENSATING PAYMENT.—Eligible persons (as
defined in subsection (c)) shall receive a compensating
payment (as defined in subsection (b)) provided that they
comply with subsection (g) (relating to applications).
(b) COMPENSATING PAYMENT DEFINED.—The term
‘‘compensating payment’’ means the product of the quali-
fied fixed income payment amount (as defined in sub-
section (e)) and the excess inflation rate (as defined in
subsection (f)).
(c) ELIGIBLE PERSON DEFINED.—An eligible person
is any person with respect to any calendar year who is
entitled to—
(1) Social Security benefits; and
(2) qualified fixed income payments (as defined
in subsection (d)).
(d) QUALIFIED
FIXED
INCOME
PAYMENT
DE-
FINED.—A qualified fixed income payment is a payment
received by—
(1) a beneficiary under a defined benefit plan
(within the meaning of section 414(j) of the Internal
Revenue Code as in effect prior to the enactment of
this Act) whether sponsored by a private or Govern-
ment employer; or
(2) by an annuitant pursuant to an annuity
contract between the annuitant and a bona fide in-
surance company.
A payment pursuant to a plan or annuity contract is not
a qualified fixed income payment if the payment varies
with investment performance, interest rates, or inflation.
Payments pursuant to an annuity contract entered into
after June 30, 2001, shall not be qualified fixed income
payments. Payments pursuant to a defined benefit plan
to a beneficiary that had been a participant in said defined
benefit plan (within the meaning of section 410 of the In-
ternal Revenue Code as in effect prior to the enactment
of this Act) for less than 5 years shall not be qualified
fixed income payments.
(e) 
QUALIFIED
FIXED
INCOME
PAYMENT
AMOUNT.—The qualified fixed income payment amount is
1⁄12 of qualified fixed income payments that an eligible
person is entitled to receive during the calendar year sub-
sequent to the year for which the compensating payment
is calculated, provided, however, that the qualified fixed
income payment amount shall not exceed $5,000.
(f) EXCESS INFLATION RATE DEFINED.—The term
‘‘excess inflation rate’’ shall mean the excess, if any, of
the consumer price index (all urban) during the 18-month
period ending December 31, 2002, over the increase pro-
jected for the consumer price index (all urban) in the Of-
fice of Management and Budget baseline reported in the
Budget of the United States for Fiscal Year 2001 for said
18-month period. The baseline assumption for the 6
months in 2001 shall be 1⁄2 of the assumed increase for
the entire calendar year 2001.
(g) APPLICATION REQUIRED.—In order to receive
compensating payments, each eligible person must apply
in a form prescribed by the Secretary of Health and
Human Services and provide such documentation as the
Secretary may reasonably require.
(h) MEANS OF PAYMENT.—Each person entitled to
a compensating payment shall receive the compensating
payment with their Social Security benefit payment. The
compensating payment shall be separately indicated but
may be included in one check. The funds to make compen-
sating payments shall come from the general fund.
(i) The Secretary of Health and Human Services may
require insurers that are parties to annuity contracts and
defined benefit plan sponsors to issue a statement to an-
nuitants or plan participants including such information
as the Secretary may require to determine the qualified
fixed income payment amount.
SEC. 10. INTEREST.
Section 6621 of the Internal Revenue Code of 1986
is amended by striking the last sentence in section
6621(a)(1) and by striking ‘‘3’’ in section 6621(a)(2)(B)
and substituting in its stead ‘‘2’’.
SEC. 11. SUPERMAJORITY REQUIRED TO RAISE RATE.
(a) IN GENERAL.—It shall not be in order in the
House of Representatives or the Senate to consider any
bill, joint resolution, amendment thereto, or conference re-
port thereon that includes any provision that—
(1) increases any federal sales tax rate, and
(2) provides any exemption, deduction, credit or
other benefit which results in a reduction in federal
revenues.
(b) WAIVER OR SUSPENSION.—This section may be
waived or suspended in the House of Representatives or
the Senate only by the affirmative vote of two-thirds of
the Members, duly chosen and sworn.
Æ