I
104TH CONGRESS
1ST SESSION
H. R. 1160
To amend the Internal Revenue Code of 1986 to provide that new income
tax deductions, credits, exclusions and other benefits shall be allowed
only if the projected Federal budget deficit meets certain deficit targets.
IN THE HOUSE OF REPRESENTATIVES
MARCH 8, 1995
Mr. BROWDER introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
that new income tax deductions, credits, exclusions and
other benefits shall be allowed only if the projected Fed-
eral budget deficit meets certain deficit targets.
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 ‘‘Balanced Budget Divi-
dend Act’’.
the amount specified in the first concurrent resolu-
tion on the budget for such year as the projected
Federal budget deficit for such year.
‘‘(3) TARGET DEFICIT.—
‘‘(A) IN GENERAL.—The term ‘target defi-
cit’ means, with respect to any fiscal year, the
amount specified in the first concurrent resolu-
tion on the budget for such year to be the tar-
get deficit for such year in order to achieve a
balanced Federal budget.
‘‘(B) TARGET TO BE SPECIFIED.—There is
a deficit reduction shortfall for any fiscal year
if—
‘‘(i) there is no target deficit for such
fiscal year,
‘‘(ii) the target deficit is not less than
the target deficit for the preceding fiscal
year, or
‘‘(iii) the 5-year deficit projections in
the resolution referred to in subparagraph
(A) do not show steady progress toward
elimination of the Federal budget deficit.
In the case in which the preceding fiscal year
referred to in clause (ii) is fiscal year 1995, the
target deficit for such year shall be treated as
being the projected deficit for such year.
‘‘(c) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) NEW INCOME TAX BENEFIT.—The term
‘new income tax benefit’ means any credit, deduc-
tion, exclusion, or other benefit under this chapter—
‘‘(A) which is enacted after December 31,
1994, and
‘‘(B) which (without regard to this section)
would result in a reduction in revenues received
in the Treasury under this chapter.
Such term includes the portion of any benefit en-
acted on or before such date to the extent that the
reduction referred to in subparagraph (B) is attrib-
utable to amendments made after such date.
‘‘(2) APPLICABLE
FEDERAL
FISCAL
YEAR.—
The term ‘applicable Federal fiscal year’ means,
with respect to any taxable year, the fiscal year end-
ing during the calendar year in which or with which
such taxable year ends.
‘‘(3) CONCURRENT RESOLUTION ON THE BUDG-
ET.—The term ‘concurrent resolution on the budget’
has the meaning given to such term by section 3 of
the Congressional Budget and Impoundment Control
Act of 1974.
‘‘(d) TERMINATION.—This section shall not apply
with respect to any fiscal year after the first fiscal year
for which the Federal budget is in balance.’’
(b) CLERICAL AMENDMENT.—The table of subparts
for such part IV is amended by adding at the end the
following new item:
‘‘Subpart H. New income tax benefits to be allowed only if Fed-
eral budget deficit meets certain targets.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 1995.
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