I
103D CONGRESS
2D SESSION
H. R. 5091
To provide for tax relief in the case of low economic growth.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 23, 1994
Mr. OBEY (for himself, Mr. FILNER, Mr. BONIOR, Mr. HAMILTON, Mr.
HINCHEY, Mrs. MEEK, Mr. RUSH, Mr. RICHARDSON, Mr. CLAY, Mr.
BRYANT, Mr. VENTO, Mr. SERRANO, Mr. ANDREWS of Maine, Mr. WIL-
SON, and Ms. PELOSI) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To provide for tax relief in the case of low economic growth.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Economic Growth and
Jobs Act of 1994’’.
SEC. 2. TAX RELIEF IN THE EVENT OF LOW GROWTH.
(a) LOW-GROWTH REPORT.—
(1) IN GENERAL.—At any time, the Director of
the Office of Management and Budget (hereafter in
this section referred to as the ‘‘Director’’) shall no-
tify the President and the Congress if the Director
has determined that for any of the periods described
in paragraph (2)—
(A) economic growth as measured by the
change in real Gross Domestic Product (GDP)
at an annual rate is estimated to be less than
3 percent, and
(B) the rate of national unemployment
(seasonally adjusted) is estimated to be greater
than 6.0 percent.
(2) TESTING PERIODS.—For purposes of para-
graph (1), the periods described in this paragraph
are—
(A) the period consisting of the quarter
during which the notification is given and the
quarter preceding such notification,
(B) the period consisting of the preceding
4 quarters, and
(C) the period consisting of the 4 quarters
following such notification.
(b) PRESIDENTIAL AUTHORIZATION OF TEMPORARY
TAX REDUCTIONS.—
(1) PRESIDENTIAL DECLARATION.—After noti-
fication under subsection (a), the President may
issue a declaration that temporary income tax reduc-
tions are required for a specified calendar year to
provide a quick and necessary fiscal stimulus to the
economy. Any such declaration shall be transmitted
to the Congress.
(2) TEMPORARY TAX MODIFICATIONS.—If the
President transmits a declaration under paragraph
(1) to the Congress—
(A) TEMPORARY TAX REDUCTIONS.—
(i) IN
GENERAL.—Effective for tax-
able years beginning in the calendar year
specified in such declaration—
(I) the rates applicable to the
first income bracket in the tax tables
contained in section 1 of the Internal
Revenue Code of 1986 shall be re-
duced by a percentage (not to exceed
131⁄3 percent) specified in such dec-
laration, and
(II) the amounts set forth as tax
in such tables shall be adjusted to re-
flect such rate reduction.
(ii) WITHHOLDING
ADJUSTMENTS.—
The withholding tables or procedures pre-
scribed by the Secretary of the Treasury or
his delegate under section 3402(a) of such
Code shall be modified so that, to the max-
imum extent possible, the full calendar
year effect of such reduction is reflected
through withholding reductions during the
portion of the calendar year after such dec-
laration.
(B) TEMPORARY
SURTAX
WHERE
ECO-
NOMIC
GROWTH
REQUIREMENTS
SUBSE-
QUENTLY SATISFIED.—
(i) IN
GENERAL.—Effective for tax-
able years beginning in the first subse-
quent calendar year for which the eco-
nomic growth requirements of paragraph
(3) are satisfied—
(I) each rate of tax in the tax ta-
bles contained in section 1 of the In-
ternal Revenue Code of 1986 shall be
increased by the percentage deter-
mined under paragraph (4) for such
year, and
(II) the amounts set forth as tax
in such tables shall be adjusted to re-
flect such rate increases.
(ii) WITHHOLDING
ADJUSTMENTS.—
Effective for such subsequent calendar
equal to the aggregate decrease in receipts under
such Code by reason of subparagraph (A) of para-
graph (2). Such percentage shall be published in the
Federal Register before the beginning of the cal-
endar year for which the economic growth require-
ments of paragraph (2) are satisfied.
(5) SPECIAL RULES WHERE MORE THAN 1 RATE
REDUCTION.—If there has been more than 1 reduc-
tion under paragraph (2)(A) before any increase
under paragraph (2)(B)—
(A) paragraph (2)(B) shall not be limited
to the first subsequent calendar year for which
the economic growth requirements of paragraph
(3) are satisfied, but
(B) the percentage determined under para-
graph (4) for each such subsequent calendar
year shall be determined by taking into account
only the decrease in receipts under such Code
with respect to taxable years beginning in a sin-
gle calendar year, beginning with the earliest
calendar year with respect to which a percent-
age increase has not been determined under
paragraph (4).
SEC. 3. TREATMENT UNDER PAY-AS-YOU-GO PROCEDURES.
Any reduction or increase in receipts resulting from
section 2 of this Act shall not be considered for any pur-
pose under the Balanced Budget and Emergency Deficit
Control Act of 1985.
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