(I) 
by 
striking 
out 
‘‘243(a)(1),
244(a)’’ each place it appears and insert-
ing in lieu thereof ‘‘243, 244’’,
(II) by striking out ‘‘the percentage
determined under section 246(b)(3) of’’,
and
(III) by striking out ‘‘(and such limi-
tation shall be applied as provided in sec-
tion 246(b)(3))’’.
(iii) Paragraph (4) of section 805(a) of the
Code is amended by striking out subparagraphs
(C), (D), and (E) and inserting in lieu thereof
the following:
‘‘(C) DISTRIBUTIONS OUT OF TAX EXEMPT
INTEREST.—No deduction shall be allowed by
reason of this paragraph with respect to any
dividend to the extent the dividend is a distribu-
tion out of tax-exempt interest.’’
(D) Subparagraph (C) of section 861(a)(2)
of the Code (relating to income from sources
within the United States) is amended by strik-
ing out ‘‘243(e)’’ and inserting in lieu thereof
‘‘243(c)’’.
(E) 
Subparagraph 
(B) 
of 
section
1504(c)(2) of the Code (relating to definition of
includible insurance companies) is amended by
striking out clause (i) and by redesignating
clauses (ii) and (iii) as clauses (i) and (ii), re-
spectively.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 5. LIMITATION ON CORPORATE INCOME TAXES AND
ON NEW FEDERAL SPENDING.
(a) LIMITATION ON CORPORATE INCOME TAXES.—
Notwithstanding any other provision of law, the maximum
rate of tax imposed by section 11 of the Code shall not
be increased above 34 percent.
(b) LIMITATION ON FEDERAL SPENDING.—Section
301 of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended by inserting after subsection
(i) the following new subsection (j):
‘‘(j) LIMITATION ON FEDERAL SPENDING.—
‘‘(1) BUDGET RESOLUTIONS, ETC.—It shall not be
in order in either the House of Representatives or
the Senate to consider any concurrent resolution on
the budget for a fiscal year beginning after Septem-
ber 30, 1995 under this section or to consider any
amendment to such concurrent resolution or to con-
sider a conference report on such concurrent resolu-
tion if the level of total budget outlays for such fis-
cal year in such concurrent resolution or amendment
or conference report exceeds the recommended level
of total budget outlays in the concurrent resolution
under this section for the fiscal year beginning Octo-
ber 1, 1995.
‘‘(2) CONTINUING RESOLUTION.—For purposes
of paragraph (1), a joint resolution making appro-
priations of money out of the Treasury not otherwise
appropriated and out of other applicable revenues,
receipts and funds shall be treated as a concurrent
resolution on the budget.’’
SEC. 6. CALCULATION OF DEFICIT ADJUSTMENT AMOUNT.
The 
amount 
to 
be 
deducted 
under 
section
2(b)(1)(B)(ii) of this Act as the deficit adjustment in any
calendar year shall be the amount, if any, by which total
budget outlays exceed Federal revenues for the fiscal year
ending in such calendar year.
SEC. 7. DEFINITIONS.
For purposes of this Act—
(1) BASE YEAR.—The term ‘‘Base Year’’ means
the first calendar year after 1994 in which ends a
fiscal year in which total budget outlays do not ex-
ceed Federal revenues.
(2) BOARD.—The term ‘‘Board’’ means the Na-
tional Dividend Review Board established by
section 3(c).
(3) FEDERAL ELECTION.—The term ‘‘Federal
election’’ means any general election in which Mem-
bers of (including any Delegate or Resident Commis-
sioner to) Congress are elected or in which the
President and Vice President are elected.
(4) CODE.—The term ‘‘Code’’ means the Inter-
nal Revenue Code of 1986.
(5) NATIONAL DIVIDEND PAYMENT.—The term
‘‘National Dividend Payment’’ means the amount
determined under section 2(b).
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or his delegate.
(7) STATE.—The term ‘‘State’’ includes the
District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United
States.
(8) TRUST
FUND.—The term ‘‘Trust Fund’’
means the National Dividend Payment Trust Fund
established by section 3(a).
Æ
HR 430 IH——2