I
105TH CONGRESS
1ST SESSION
H. R. 392
To provide for economic growth by reducing income taxes for most Americans,
by encouraging the purchase of American-made products, and by extend-
ing transportation-related spending, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 9, 1997
Mr. ANDREWS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Trans-
portation and Infrastructure, Government Reform and Oversight, Bank-
ing and Financial Services, and Appropriations, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide for economic growth by reducing income taxes
for most Americans, by encouraging the purchase of
American-made products, and by extending transpor-
tation-related spending, and for other purposes.
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 In-
centive Act of 1997’’.
TITLE I—REDUCTION IN
INDIVIDUAL INCOME TAXES
SEC. 101. 5-PERCENT DECREASE IN INDIVIDUAL INCOME
TAXES FOR MOST TAXPAYERS.
(a) RATE REDUCTIONS.—Subsection (f) of section 1
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new paragraph:
‘‘(8) RATE
REDUCTIONS.—In prescribing the
tables under paragraph (1) which apply with respect
to taxable years beginning in a calendar year after
1997—
‘‘(A) ‘14.25%’ shall be substituted for
‘15%’,
‘‘(B) ‘26.6%’ shall be substituted for
‘28%’,
‘‘(C) ‘29.45%’ shall be substituted for
‘31%’, and
‘‘(D) ‘34.2%’ shall be substituted for
‘36%’.’’
(b) TECHNICAL AMENDMENTS.—
(1) Subparagraph (B) of section 1(f)(2) of such
Code is amended by inserting ‘‘except as provided in
paragraph (8),’’ before ‘‘by not changing’’.
(2) Subparagraph (C) of section 1(f)(2) of such
Code is amended by inserting ‘‘and the reductions
under paragraph (8) in the rates of tax’’ before the
period.
(3) The heading for subsection (f) of section 1
of such Code is amended by inserting ‘‘RATE RE-
DUCTIONS;’’ before ‘‘ADJUSTMENTS’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
TITLE II—INCENTIVE FOR PUR-
CHASE OF AMERICAN-MADE
PROPERTY
SEC. 201. DEDUCTION FOR GENERAL SALES TAXES ON
AMERICAN-MADE 
TANGIBLE 
PERSONAL
PROPERTY.
(a) IN GENERAL.—Subsection (a) of section 164 of
the Internal Revenue Code of 1986 (relating to deduction
for taxes) is amended by inserting after paragraph (5) the
following new paragraph:
‘‘(6) State and local general sales taxes imposed
in respect of qualified sales at retail of American-
made property.’’
(b) DEFINITIONS.—Subsection (b) of section 164 of
such Code is amended by adding at the end thereof the
following new paragraph:
‘‘(5) DEFINITIONS
RELATING
TO
GENERAL
SALES TAXES.—For purposes of subsection (a)(6)—
‘‘(A) QUALIFIED SALES.—The term ‘quali-
fied sale’ means any sale of property if the
price (including taxes and shipping (if any))
paid by the taxpayer for such property and all
other American-made property purchased with
such property in the same transaction exceeds
$500.
‘‘(B) AMERICAN-MADE
PROPERTY.—The
term ‘American-made property’ means tangible
personal property more than 50 percent of the
cost of which is attributable to value added in
the United States.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
TITLE III—SURFACE
TRANSPORTATION PROGRAMS
SEC. 301. OBLIGATION CEILING.
Section 1002 of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 104 note; 105
Stat. 1916–1918) is repealed.
SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR HIGH-
WAY PROGRAMS.
Section 1003(a) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 1918–1922) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘and’’; and
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘each of fiscal years 1997, 1998, 1999,
and 2000’’;
(2) in paragraph (2)—
(A) by striking ‘‘and’’; and
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘each of fiscal years 1997, 1998, 1999,
and 2000’’;
(3) in paragraph (3)—
(A) by striking ‘‘and’’; and
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘each of fiscal years 1997, 1998, 1999,
and 2000’’;
(4) in paragraph (4)—
(A) by striking ‘‘and’’ the second place it
appears; and
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘each of fiscal years 1997, 1998, 1999,
and 2000’’;
(5) in paragraph (5)—
(A) by striking ‘‘and’’; and
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘each of fiscal years 1997, 1998, 1999,
and 2000’’;
(6) in paragraph (6)(A) by striking ‘‘and 1997’’
and inserting ‘‘1997, 1998, 1999, and 2000’’;
(7) in paragraph (6)(B) by striking ‘‘and 1997’’
and inserting ‘‘, 1997, 1998, 1999, and 2000’’;
(8) in paragraph (6)(C) by striking ‘‘and 1997’’
and inserting ‘‘, 1997, 1998, 1999, and 2000’’;
(9) in paragraph (7) by striking ‘‘and 1997’’
and inserting ‘‘1997, 1998, 1999, and 2000’’; and
(10) in paragraph (8) by striking ‘‘and 1997’’
and inserting ‘‘1997, 1998, 1999, and 2000’’.
SEC. 303. DONOR STATE BONUS AMOUNTS.
Section 1013(c)(1) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (23 U.S.C. 157 note; 105
Stat. 1940) is amended by adding at the end the following
new subparagraphs:
‘‘(G) For fiscal year 1998 $514,000,000.
‘‘(H) For fiscal year 1999 $514,000,000.
‘‘(I) For fiscal year 2000 $514,000,000.’’.
SEC. 304. APPORTIONMENT ADJUSTMENTS.
(a) HOLD HARMLESS.—Section 1015(a)(1) of the
Intermodal Surface Transportation Efficiency Act of 1991
(23 U.S.C. 104 note; 105 Stat. 1943) is amended by strik-
ing ‘‘1997’’ and inserting ‘‘2000’’.
(b) 90-PERCENT OF PAYMENT ADJUSTMENTS.—Sec-
tion 1015(b)(1) of such Act is amended by striking
‘‘1997’’ and inserting ‘‘2000’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—Section
1015(e) of such Act is amended by striking ‘‘1997’’ and
inserting ‘‘2000’’.
SEC. 305. SET-ASIDE FOR 4R PROJECTS.
Section 118(c)(2)(A) of title 23, United States Code,
is amended by striking ‘‘fiscal year 1997’’ and inserting
‘‘each of fiscal years 1997, 1998, 1999, and 2000’’.
SEC. 306. DISCRETIONARY BRIDGE PROGRAM.
Section 144(g)(1) of title 23, United States Code, is
amended by striking ‘‘and 1997’’ each place it appears
and inserting ‘‘1997, 1998, 1999, and 2000’’.
SEC. 307. NATIONAL HIGH-SPEED GROUND TRANSPOR-
TATION PROGRAMS.
Section 1036(d)(1) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (105 Stat. 1986) is
amended—
(1) in subparagraph (A) by striking ‘‘fiscal year
1995’’ and inserting ‘‘each of fiscal years 1995,
1998, 1999, and 2000’’; and
(2) in subparagraph (B) by striking ‘‘and
1996’’ and inserting ‘‘1996, 1998, 1999, and 2000’’.
SEC. 308. HIGHWAY TIMBER BRIDGE PROGRAM.
Section 1039(e) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 144 note; 105
Stat. 1991) is amended by striking ‘‘and 1997’’ and in-
serting ‘‘1997, 1998, 1999, and 2000’’.
SEC. 309. HIGHWAY USE TAX EVASION PROJECTS.
Section 1040(f)(1) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (23 U.S.C. 101 note; 105
Stat. 1992–1993) is amended by striking ‘‘and 1997’’ and
inserting ‘‘1997, 1998, 1999, and 2000’’.
SEC. 310. SCENIC BYWAYS PROGRAM.
Section 1047(d) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 101 note; 105
Stat. 1998) is amended by striking ‘‘and 1997’’ and in-
serting ‘‘1997, 1998, 1999, and 2000’’.
SEC. 311. CONSTRUCTION OF FERRY BOATS AND FERRY
TERMINAL FACILITIES.
Section 1064(c) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 129 note; 105
Stat. 2005) is amended by striking ‘‘fiscal year 1997’’ and
inserting ‘‘each of fiscal years 1997, 1998, 1999, and
2000’’.
SEC. 312. HIGHWAY SAFETY AUTHORIZATION OF APPRO-
PRIATIONS.
Section 2005 of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 2079) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘and’’ the second place it
appears; and
(B) by inserting after ‘‘1997’’ the follow-
ing: ‘‘and, $171,000,000 for each of fiscal years
1998, 1999, and 2000’’; and
(2) in paragraph (2) by striking ‘‘1997’’ and in-
serting ‘‘2000’’.
SEC. 313. HIGHWAY SAFETY OBLIGATION CEILINGS.
Section 2009 of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 2080) is amended
by striking subsections (a) and (b) and inserting the fol-
lowing:
‘‘Sums authorized to be appropriated by this title and
the amendments made by this title shall not be subject
to any obligation limitation.’’.
SEC. 314. FEDERAL TRANSIT ACT AUTHORIZATIONS.
Section 5338 of title 49, United States Code, is
amended—
(1) in subsection (a)(1)(E) by striking ‘‘the fis-
cal year ending September 30, 1997’’ and inserting
‘‘each of fiscal years 1997, 1998, 1999, and 2000’’;
and
(2) in subsection (b)(1)(E) by striking ‘‘the fis-
cal year ending September 30, 1997’’ and inserting
‘‘each of fiscal years 1997, 1998, 1999, and 2000’’.
SEC. 315. REDUCTION IN FEDERAL TRANSIT ACT AUTHOR-
IZATIONS FOR BUDGET COMPLIANCE.
Section 3038 of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 2138) is repealed.
SEC. 316. MOTOR CARRIER SAFETY GRANT PROGRAM.
Section 31104(a)(5) of title 49, United States Code,
is amended by striking ‘‘the fiscal year ending September
30, 1997’’ and inserting ‘‘each of fiscal years 1997, 1998,
1999, and 2000’’.
SEC. 317. 3-YEAR EXTENSION OF HIGHWAY TRUST FUND EX-
PENDITURES.
Subsections (c)(1) and (d)(3) of section 9503 of the
Internal Revenue Code of 1986, as amended by this Act,
are each amended by striking ‘‘1997’’ and inserting
‘‘2000’’.
TITLE IV—RELIEF FROM CREDIT
CRUNCH
SEC. 401. LOOSENING OF REQUIREMENTS ON LOAN LOSS
RESERVES ENCOURAGED.
(a) FINDINGS.—The Congress hereby finds that—
(1) the economy of the United States has been
in a sustained period of slow growth;
(2) credit for commercial and consumer loans
and leases has become more difficult to obtain over
the past three years, resulting in a ‘‘credit crunch’’;
(3) the banking industry has adopted a cautious
credit policy in response to the state of the economy
and the problems experienced by the savings and
loan industry;
(4) the Federal Reserve has lowered its reserve
requirements on member banks for both checking
and savings deposits over the past two years in an
effort to stimulate the economy, with only moderate
success; and
(5) the loosening of the requirements on loan
loss reserves by State banking authorities and the
appropriate Federal banking agencies, as that term
is defined in section 3(q) of the Federal Deposit In-
surance Act (12 U.S.C. 1813(q)), might help stimu-
late the economy.