I
107TH CONGRESS
1ST SESSION
H. R. 927
To provide for a tax reduction in the case of low economic growth.
IN THE HOUSE OF REPRESENTATIVES
MARCH 7, 2001
Mr. OBEY (for himself, Mr. MORAN of Virginia, and Mr. FRANK) introduced
the following bill; which was referred to the Committee on Ways and
Means, and in addition to the Committee on the Budget, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To provide for a tax reduction 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 ‘‘Standby Authority to
Fight Economic Recession Tax Cut Act of 2001’’.
SEC. 2. TAX REDUCTION 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’’) may no-
tify the President and the Congress if the Direc-
tor—
(A) determines that paragraph (2) was
met for the 2 quarters preceding the quarter
during which the notification is given, or
(B)(i) projects that paragraph (2) will be
met for the quarter during which the notifica-
tion is given, and
(ii) determines that such paragraph was
met for the preceding quarter.
(2) REQUIREMENT.—This paragraph is met if
either—
(A) economic growth as measured by the
change in real Gross Domestic Product (GDP)
at an annual rate is estimated to be less than
1.5 percent, or
(B) there is a decrease in the number of
employed individuals.
Nothing in this section shall be construed as pre-
venting the Director from taking into account esti-
mates which are subject to revision.
(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, effective for taxable years be-
ginning in the calendar year specified in such dec-
laration—
(A) 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
reduced by a number of percentage points (not
to exceed 3 percentage points) specified in such
declaration,
(B) the amounts set fourth as tax in such
tables shall be adjusted to reflect such rate re-
duction, and
(C) the withholding tables or procedures
prescribed under section 3402(a) of such Code
shall be modified as specified in such declara-
tion (including having different withholding
rates apply to portions of a calendar year).
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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