I
103D CONGRESS
1ST SESSION
H. R. 865
To ensure that any peace dividend is invested in America’s families and
deficit reduction.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1993
Mr. SOLOMON introduced the following bill; which was referred jointly to the
Committees on Government Operations, Rules, and Ways and Means
A BILL
To ensure that any peace dividend is invested in America’s
families and deficit reduction.
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 ‘‘Ronald Reagan Peace
Dividend Investment Act of 1993’’.
SEC. 2. AMENDMENTS TO THE CONGRESSIONAL BUDGET
ACT OF 1974.
(a) IN
GENERAL.—Title VI of the Congressional
Budget Act of 1974 is amended by adding after section
606 the following new section:
‘‘SEC. 606A. ALLOCATION OF REDUCTIONS IN DISCRE-
TIONARY DEFENSE SPENDING.
‘‘(a) IN GENERAL.—If pursuant to section 251(a)(7)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 outlays within accounts under major func-
tional category 050 (defense programs) for fiscal year
1994 or 1995 are estimated to be below the such outlays
for fiscal year 1993, the difference shall be used to reduce
the deficit and to increase the personal income tax exemp-
tion as provided in subsection (c).
‘‘(b) ADJUSTMENT
TO DISCRETIONARY SPENDING
LIMITS.—The amounts by which aggregate outlays for de-
fense programs (functional category 050) in fiscal year
1994 or 1995 are estimated to be below such outlays for
fiscal year 1993, then the discretionary spending limits
calculated pursuant to section 251(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985 shall
be adjusted for this difference as follows:
‘‘(1) OUTLAY
ADJUSTMENT.—The adjustment
for fiscal years 1994 and 1995 shall be an amount
equal to such difference in such fiscal years.
‘‘(2) BUDGET AUTHORITY ADJUSTMENT.—The
adjustment for fiscal year 1994 shall be an amount
equal to the outlay difference for fiscal year 1993 di-
vided by the aggregate spend out rate for the de-
fense discretionary appropriations enacted for fiscal
year 1993 multiplied by the baseline inflator for fis-
cal year 1994. The adjustment for fiscal year 1995
shall be an amount equal to the adjustment to the
discretionary spending limit for budget authority for
fiscal year 1994 multiplied by the baseline inflator
for fiscal year 1995.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘baseline inflator’ has the meaning
given to it in section 251(b)(1)(B)(ii) of the Bal-
anced Budget and Emergency Deficit Control Act of
1985.
‘‘(c) ALLOCATION OF ADJUSTMENTS.—The adjust-
ments in the discretionary spending limits for outlays de-
scribed in subsection (b)(1) shall be allocated in the follow-
ing manner:
‘‘(1) DEFICIT REDUCTION.—The maximum def-
icit amount calculated pursuant to section 253 of
the Balanced Budget and Emergency Deficit Control
Act of 1985 for any of fiscal years 1994 and 1995
shall be reduced by an amount equal to the change
in the estimated deficit resulting from such reduced
outlays and the reduction in revenue described in
paragraph (2).
‘‘(2) PERSONAL EXEMPTION.—The Secretary of
the Treasury shall increase the personal exemption
amount for individuals as determined under section
151 of the Internal Revenue Code of 1986 by an
amount estimated to reduce receipts in the calendar
year beginning during such fiscal year by an amount
equal to one-half of the adjustment described in sub-
section (b)(1) to the discretionary spending limit for
outlays for that fiscal year.
‘‘(d) PERMITTING
OF PEACE DIVIDEND INVEST-
MENT.—Legislation affecting receipts as a result of the
requirements of section (c)(2) shall not be considered leg-
islation that increases the deficit for purposes of section
252 of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985.
‘‘(e) ADJUSTMENTS
TO CONGRESSIONAL BUDGET
TOTALS.—The reductions in the maximum deficit amount
and revenues required by subsection (c) shall be reflected
in the concurrent resolution on the budget and the com-
mittee spending allocations for fiscal years 1994 and
1995.
‘‘(f) POINT OF ORDER.—
‘‘(1) It shall not be in order in the House of
Representatives or the Senate to consider any bill,
resolution, amendment, or conference report that
would reduce defense spending below its fiscal year
1993 level if such bill, resolution, amendment, or