351 
insurance other than insurance that is treated as a savings 
asset. 
‘‘SEC. 1697. BANKING SERVICES. 
‘‘The Secretary shall prescribe regulations on the lo-
cation of banking services and the extent to which such 
services are to be treated as imported or exported. 
‘‘Subchapter K—Import Tax 
‘‘Sec. 1701. Imposition of tax on property. 
‘‘Sec. 1702. Imposition of tax on import of services. 
‘‘Sec. 1703. General rules for the import tax. 
‘‘SEC. 1701. IMPOSITION OF TAX ON PROPERTY. 
‘‘(a) GENERAL RULE.—There is hereby imposed a 
tax equal to 8.5 percent of the customs value of all prop-
erty entered into the United States for consumption, use 
or warehousing. 
‘‘(b) LIABILITY FOR TAX.—The tax imposed on the 
import of property by subsection (a) shall be paid by the 
person entering the property into the United States for 
consumption, use or warehousing. Such tax shall be due 
and payable at the time of import. 
‘‘(c) IMPORTS
OF PREVIOUSLY EXPORTED PROP-
ERTY.—In the case of any article that is classified under 
a heading or subheading of subchapter I or II of chapter 
98 of the Tariff Schedules of the United States, the tax 
under this section shall be imposed only on that portion 
of the customs value of such article that is dutiable under 
such heading or subheading. 
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‘‘(d) IMPORTS FOR PERSONAL CONSUMPTION.—The 
import tax imposed by this section shall not apply to any 
article entered into the United States duty free under sub-
chapters I through VII of chapter 98 of the Tariff Sched-
ules of the United States. 
‘‘SEC. 1702. IMPOSITION OF TAX ON IMPORT OF SERVICES. 
‘‘(a) GENERAL RULE.—There is hereby imposed a 
tax equal to 8.5 percent of the cost of all services treated 
as imported into the United States during the taxable pe-
riod of the service recipient. 
‘‘(b) LIABILITY FOR THE TAX.—The tax on the im-
port of services imposed by subsection (a) shall be paid 
by the person who receives the imported services. The tax 
shall be payable as if it were an addition to the business 
tax imposed by section 1601. 
‘‘(c) IMPORTED SERVICES.—For purposes of this sec-
tion, services shall be treated as imported if they are treat-
ed as imported under section 1693 (general rules on im-
port of services) or section 1696 (related to insurance). 
‘‘SEC. 1703. GENERAL RULES FOR THE IMPORT TAX. 
‘‘ ‘Import tax’ means the tax imposed by section 1701 
on the import of property and the tax imposed by section 
1702 on the import of services. 
‘‘Subchapter L—Transition Rules 
‘‘Sec. 1711. Amortization of transition basis. 
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‘‘SEC. 1711. AMORTIZATION OF TRANSITION BASIS. 
‘‘(a) TRANSITION BASIS DEDUCTION.—The ‘transi-
tion basis deduction’ for a taxable period is the sum of 
the amortization allowance determined under this section 
for the taxable period. 
‘‘(b) TREATMENT OF INTEREST FLOWS.—Interest 
flows between non-financial businesses shall be treated as 
under current law, phased out over 5 years. 
‘‘(c) AMORTIZATION RULES.—The amortization al-
lowance to all property placed in service before the effec-
tive date of this section shall be the lesser of— 
‘‘(1) the amortization period under current law 
remaining on such date, or 
‘‘(2) a 5-year ratable period beginning on such 
date. 
‘‘Subchapter M—Rules for Administration, 
Consolidated Returns 
‘‘Sec. 1721. Returns, due dates, etc. 
‘‘Sec. 1722. Consolidated returns. 
‘‘Sec. 1723. Seller liable for tax. 
‘‘Sec. 1724. Tax invoices. 
‘‘Sec. 1725. Time for filing return and claiming credit; deposits of tax. 
‘‘Sec. 1726. Secretary to be notified of certain events. 
‘‘Sec. 1727. Regulations. 
‘‘SEC. 1721. RETURNS, DUE DATES, ETC. 
‘‘(a) IN GENERAL.—Until subtitle F is amended to 
reflect the adoption of this chapter, the rules of subtitle 
F relating to C corporations shall apply to business enti-
ties with respect to— 
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‘‘(1) returns and records; 
‘‘(2) time and place for paying tax; 
‘‘(3) assessment of taxes; 
‘‘(4) collections and liens; 
‘‘(5) abatements, credits, and refunds; 
‘‘(6) interest on underpayments and overpay-
ments; 
‘‘(7) additions to tax and penalties; 
‘‘(8) closing agreements and compromises; 
‘‘(9) crimes; 
‘‘(10) judicial proceedings; 
‘‘(11) discovery of liability and enforcement; 
and 
‘‘(12) estimated taxes. 
‘‘(b) INDIVIDUALS ENGAGING IN BUSINESS ACTIVI-
TIES.—Under rules prescribed by the Secretary, individ-
uals engaging in business activities on their own or with 
their spouses shall be permitted to file their business tax 
returns with their individual tax returns and shall be sub-
ject to estimated tax rules for individual income tax re-
turns. 
‘‘SEC. 1722. CONSOLIDATED RETURNS. 
‘‘(a) IN GENERAL.—Business entities may file con-
solidated returns of business tax if they would have been 
permitted to file consolidated returns under section 1501 
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and such section were applied by treating each business 
entity as a corporation and its owners or partners as 
shareholders. 
‘‘(b) FINANCIAL
INSTITUTIONS.—Financial inter-
mediation businesses may be included in consolidated re-
turns, but each financial intermediation business must 
compute its gross profits separately. 
‘‘(c) INTERCOMPANY TRANSACTIONS.—In computing 
the gross profits of a consolidated group, intercompany 
transactions can be taken into account, or at the election 
of the filer, be disregarded (except in the case of trans-
actions with financial intermediation businesses). 
‘‘SEC. 1723. SELLER LIABLE FOR TAX. 
‘‘The person selling the property or services shall be 
liable for the tax imposed by section 1601. 
‘‘SEC. 1724. TAX INVOICES. 
‘‘(a) SELLER MUST GIVE PURCHASER TAX IN-
VOICE.—Any taxable person engaging in a taxable trans-
action shall give the purchaser a tax invoice with respect 
to such transaction if the seller has reason to believe that 
the purchaser is a taxable person. 
‘‘(b) CONTENT OF INVOICE.—The tax invoice re-
quired by subsection (a) with respect to any transaction 
shall set forth— 
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‘‘(1) the name and identification number of the 
seller, 
‘‘(2) the name of the purchaser, 
‘‘(3) the amount of the tax imposed by section 
1601, and 
‘‘(4) such other information as may be pre-
scribed by regulations. 
‘‘(c) NO CREDIT WITHOUT INVOICE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a purchaser may claim a credit 
with respect to a transaction only if the purchaser— 
‘‘(A) has received from the seller and has 
in the purchaser’s possession a tax invoice 
which meets the requirements of subsection (b), 
and 
‘‘(B) is named as the purchaser in such in-
voice. 
‘‘(2) EMPLOYEES OR OTHER AGENTS NAMED IN 
INVOICES.—To the extent provided in regulations, 
the naming of an employee or other agent of the 
purchaser shall be treated as the naming of the pur-
chaser. 
‘‘(3) WAIVER
OF
INVOICE
REQUIREMENT
IN 
CERTAIN CASES.—To the extent provided in regula-
tions, paragraph (1) shall not apply— 
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‘‘(A) where the purchaser without fault on 
the purchaser’s part fails to receive or fails to 
have in the purchaser’s possession a tax invoice, 
‘‘(B) to a taxable transaction (or category 
of transactions) where— 
‘‘(i) the amount involved is de mini-
mis, or 
‘‘(ii) the information required by sub-
section (b) can be reliably established by 
sampling or by another method and can be 
adequately documented. 
‘‘(d) TIME FOR FURNISHING INVOICE.—Any invoice 
required to be furnished by subsection (a) with respect to 
any transaction shall be furnished not later than 15 busi-
ness days after the tax point for such transaction. 
‘‘SEC. 1725. TIME FOR FILING RETURN AND CLAIMING 
CREDIT; DEPOSITS OF TAX. 
‘‘(a) FILING RETURN.—Before the first day of the 
second calendar month beginning after the close of each 
taxable period, each taxable person shall file a return of 
the tax imposed by section 1601 on taxable transactions 
having a tax point within such taxable period. 
‘‘(b) CREDIT ALLOWED FOR TAXABLE PERIOD IN 
WHICH PURCHASER RECEIVES INVOICE.— 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a credit allowable by section 1606 with 
respect to a transaction may be allowed only for the 
first taxable period by the close of which the tax-
payer— 
‘‘(A) has paid or accrued amounts properly 
allocable to the tax imposed by section 1601 
with respect to such transaction, and 
‘‘(B) has a tax invoice (or equivalent) with 
respect to such transaction. 
‘‘(2) USE FOR LATER PERIOD.—Under regula-
tions, a credit allowable by section 1606 may be al-
lowed for a period after the period set forth in para-
graph (1). 
‘‘(c) TAXABLE PERIOD.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—The term ‘taxable period’ 
means a calendar quarter. 
‘‘(2) EXCEPTION.— 
‘‘(A) ELECTION OF 1-MONTH PERIOD.—If 
the taxpayer so elects, the term ‘taxable period’ 
means a calendar month. 
‘‘(B) OTHER PERIODS.—To the extent pro-
vided in regulations, the term ‘taxable period’ 
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includes a period, other than a calendar quarter 
or month, selected by the taxpayer. 
‘‘(d) TAX POINT.—For purposes of this chapter— 
‘‘(1) CHAPTER
RULES
WITH
RESPECT
TO 
SELLER GOVERN.—Except as provided in paragraph 
(2), the tax point for any sale of property or services 
is the earlier of— 
‘‘(A) the time (or times) when any income 
from the sale should be treated by the seller as 
received or accrued (or any loss should be taken 
into account by the seller) for purposes of chap-
ter 1, or 
‘‘(B) the time (or times) when the seller 
receives payment for the sale. 
‘‘(2) IMPORTS.—In the case of the importing of 
property, the tax point is when the property is en-
tered, or withdrawn from warehouse, for consump-
tion in the United States. 
‘‘(e) MONTHLY DEPOSITS REQUIRED.—To the extent 
provided in regulations, monthly deposits may be required 
of the estimated liability for any taxable period for the 
tax imposed by section 1601. 
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‘‘SEC. 1726. SECRETARY TO BE NOTIFIED OF CERTAIN 
EVENTS. 
‘‘To the extent provided in regulations, each person 
engaged in a business shall notify the Secretary (at such 
time or times as may be prescribed by such regulations) 
of any change in the form in which a business is conducted 
or any other change which might affect the liability for 
the tax imposed by section 1601 or the amount of such 
tax or any credit against such tax, or otherwise affect the 
administration of such tax in the case of such person. 
‘‘SEC. 1727. REGULATIONS. 
‘‘The Secretary shall prescribe such regulations as 
may be necessary to carry out the purposes of this chap-
ter. 
‘‘Subchapter N—Definitions and Rules of 
Application 
‘‘Sec. 1731. Definitions. 
‘‘Sec. 1732. Rules of application. 
‘‘SEC. 1731. DEFINITIONS. 
‘‘If a term that is used but not defined in this chapter 
or in section 7701 is defined in chapter 1, the definition 
in chapter 1 shall apply except if manifestly incompatible 
with the intent of the provision in which the term is used. 
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‘‘SEC. 1732. RULES OF APPLICATION. 
‘‘(a) DEFINITIONS.—Any definition included in this 
chapter shall apply for all purposes of this chapter un-
less— 
‘‘(1) such definition is limited to the purposes 
of a particular chapter, section, or subsection, or 
‘‘(2) the definition clearly would not be applica-
ble in a particular context. 
‘‘(b) INTERPRETATIONS CONSISTENT WITH INTER-
NAL REVENUE CODE OF 1986.—Terms not defined in this 
chapter, chapter 1 or section 7701, but defined elsewhere 
in this title, shall be interpreted in a manner consistent 
with this title, except to the extent such interpretation 
would be inconsistent with the principles and purposes of 
this chapter.’’. 
(b) The amendments made by this section shall be 
effective on January 1, 2009, except to the extent other-
wise specifically provided in the text of such amendments. 
SEC. 603. REPEAL OF CHAPTER 6. 
Chapter 6 of the Code (relating to consolidated re-
turns) is repealed as of January 1, 2008. 
SEC. 604. REVISIONS TO THE CODE. 
Not later than January 1, 2009, the Secretary shall 
submit to Congress proposed changes in the Internal Rev-
enue Code of 1986 that— 
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(1) revise subtitles C through J of such Code 
to fully reflect the amendments to subtitle A of such 
Code made by this title and the repeal of subtitle B 
of such Code, 
(2) include statutory definitions or rules in 
cases where the Secretary concludes that the defini-
tions or rules cannot or should not be addressed by 
regulation, 
(3) revise chapter 2 of such Code (relating to 
the self-employment tax) to conform to changes 
made by this title, and 
(4) revise chapter 3 of such Code (relating to 
withholding on nonresident aliens and foreign cor-
porations) to reflect changes made by this title. 
SEC. 605. APPLICATION OF SUBTITLE F. 
Until such time as subtitle F of the Internal Revenue 
Code of 1986 is amended to reflect the amendments made 
by this title, the provisions of such subtitle F shall be 
treated as generally applying to chapter 7 of subtitle A 
of such Code— 
(1) without regard to specific cross references, 
(2) without regard to provisions relating to 
partnerships, and 
(3) as if the business tax under such chapter 7 
were the corporate income tax and all business enti-
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ties were corporations (except for purposes of collec-
tion, in which case the owners of noncorporate enti-
ties shall be obligated for taxes owned by the entities 
to the same extent as they would if the entity owed 
the tax prior to the amendment of the Code). 
SEC. 606. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in 
this title, the amendments made by this title shall be effec-
tive on and after January 1, 2009, with respect to tax 
years beginning on such date. 
(b) SPECIAL RULES FOR BUSINESSES WITH 52–53 
WEEK YEAR.—If a business uses a 52–53 week taxable 
period the amendments made by this title shall apply to 
the business with respect to its tax year beginning in the 
last week in December except with respect to any trans-
actions occurring during 2008 that were structured to 
take advantage of the application of this title to such busi-
ness at a time when this title did not apply to other busi-
nesses or to individuals. 
TITLE VII—BUDGET 
ENFORCEMENT 
SEC. 701. SHORT TITLE; TABLE OF CONTENTS; DEFINI-
TIONS. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Budget Control Act of 2008’’. 
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(b) TABLE OF CONTENTS.— 
Sec. 701. Short title; table of contents; definitions. 
Sec. 702. Long-term projections. 
Sec. 703. Preview spending reduction order. 
Sec. 704. Final spending reduction order. 
Sec. 705. Eliminating excess spending amounts. 
Sec. 706. Special procedures. 
Sec. 707. Suspension in the event of war or low growth. 
Sec. 708. Alternate spending reduction legislation in the House of Representa-
tives. 
Sec. 709. Alternate spending reduction legislation in the Senate. 
Sec. 710. General provisions. 
Sec. 711. Effective date. 
(c) DEFINITIONS.—As used in this part: 
(1) The terms ‘‘budget authority’’ and ‘‘out-
lays’’ have the meanings given to such terms in sec-
tion 3 of the Congressional Budget Act of 1974. 
(2) The term ‘‘budgetary resources’’ means new 
budget authority, budget authority, unobligated bal-
ances, direct spending authority, and obligation limi-
tations. 
(3) The term ‘‘spending reduction’’ refers to 
the cancellation of budgetary resources provided by 
discretionary appropriations or direct spending. 
(4) The term ‘‘discretionary appropriations’’ 
means budgetary resources provided in appropriation 
Acts. 
(5) The term ‘‘direct spending’’ means budget 
resources provided in law other than appropriation 
Acts; 
(6) The term ‘‘gross domestic product’’, with 
respect to any fiscal year, means the gross national 
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product during such fiscal year consistent with De-
partment of Commerce definitions. 
(7) The term ‘‘account’’ means an item for 
which appropriations are made in any appropriation 
Act and, for items not provided for in appropriation 
Acts, such term means an item for which there is a 
designated budget account identification code num-
ber in the President’s budget. 
(8) The term ‘‘budget year’’ means, with re-
spect to a session of Congress, the fiscal year of the 
Government that starts on October 1 of the calendar 
year in which that session begins. 
(9) The term ‘‘current year’’ means, with re-
spect to a budget year, the fiscal year that imme-
diately precedes that budget year. 
(10) The term ‘‘OMB’’ means the Director of 
the Office of Management and Budget. 
(11) The term ‘‘CBO’’ means the Director of 
the Congressional Budget Office. 
(12) The term ‘‘baseline’’ means the baseline 
estimates OMB or CBO, as applicable, annually sub-
mits to Congress consistent with section 257 of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985. 
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(13) The term ‘‘guideline period’’ means the pe-
riod of fiscal years as set forth in section 702(f). 
(14) The term ‘‘excess spending amount’’ 
means the amount of outlays a projected spending 
amount exceeds the guideline spending amount for a 
fiscal year within the guideline period. 
(15) The term ‘‘projected spending amount’’ 
means the amount of total outlays of the Federal 
Government for a fiscal year within the guideline pe-
riod and as calculated in section 702(c). 
(16) The term ‘‘guideline spending amount’’ 
means the amount of total outlays of the Federal 
Government for a fiscal year as a percentage of the 
gross domestic product for such fiscal year within 
the guideline period. 
(17) The term ‘‘preview order’’ means a pre-
view spending reduction order as defined in section 
703. 
(18) The term ‘‘final order’’ means a final 
spending reduction order as defined in section 704. 
SEC. 702. LONG-TERM PROJECTIONS. 
(a) OMB LONG-TERM ECONOMIC GROWTH
AND 
BUDGET PROJECTIONS.—For each fiscal year within the 
guideline period, OMB shall prepare a report that sets 
forth the amount of total spending of the Government in 
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outlays, within the budget as submitted by the President 
anually under section 1105(a) of title 31, United States 
Code. 
(b) CBO
LONG-TERM
ECONOMIC
GROWTH
AND 
BUDGET PROJECTIONS.—By February 1 of each calendar 
year, for each fiscal year within the guideline period, CBO 
shall prepare a report that sets forth the amount of total 
spending of the Government in outlays, and the amount 
of spending of each program within the budget as CBO 
prepares its annual baseline and its reestimate of the 
President’s budget. 
(c) INCLUSION IN THE FINAL SPENDING REDUC-
TION.—Each report prepared pursuant to subsections (a) 
and (b) shall be included in the preview spending reduc-
tion and final spending reduction, as applicable, set forth 
in sections 703 and 704. 
SEC. 703. PREVIEW SPENDING REDUCTION ORDER. 
(a) ISSUANCE.—Not later than 15 calendar days 
after the date Congress adjourns to end a session of Con-
gress, every fiscal year other than which a final order is 
issued, OMB shall issue a preview spending reduction 
order. 
(b) CONTENTS.—A preview order shall be subject to 
the same requirements as that set forth for a final spend-
ing reduction in section 704. 
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(c) AVAILABILITY.—A preview order required to be 
issued by this section shall be submitted by OMB to the 
House of Representatives and the Senate on the day it 
is issued. 
(d) EFFECT.—A preview order shall not cause a 
spending reduction. 
SEC. 704. FINAL SPENDING REDUCTION ORDER. 
(a) ISSUANCE.—Not later than 15 calendar days 
after the date Congress adjourns to end a session of Con-
gress, every fifth fiscal year following the fiscal year in 
which this Act is enacted, OMB shall issue a final spend-
ing reduction order to eliminate an excess spending 
amount (if any) as calculated under subsection (b). 
(b) CONTENT
OF
A FINAL SPENDING CONTROL 
ORDER.—In addition to any other information required 
under this title to be included in any final spending control 
order, this order shall contain, for the budget year, for 
each account to be subject to a spending reduction, esti-
mates of the baseline level of budgetary resources and re-
sulting outlays and the amount of budgetary resources to 
be subject to a spending reduction and resulting outlay 
reductions. The order shall also contain estimates of the 
effects on outlays of the spending reduction in each out-
year for direct spending programs. 
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(c) AVAILABILITY.—A final order required to be 
issued by this section shall be submitted by OMB to the 
House of Representatives, the Senate, and the President 
on the day it is issued. 
(d) SPENDING CONTROL BUFFER.—If there is an ex-
cess spending amount in only one fiscal year or in one 
period of two successive fiscal years during the guideline 
period, and such amount or amounts exceed the guideline 
spending amount by .1 percent of GDP or less, then the 
final spending reduction shall be issued, but shall not take 
effect. 
(e) PRESIDENTIAL ORDER.—On the date specified in 
subsection (a), if in its final spending reduction OMB cal-
culates there exists an impermissible excess spending 
amount, the President shall issue an order fully imple-
menting without change all spending reductions required 
by the OMB calculations set forth in that report. This 
order shall be effective on the first day of the fiscal year 
following the fiscal year in which the order is issued. 
SEC. 705. ELIMINATING EXCESS SPENDING AMOUNTS. 
(a) ENFORCING A SPENDING REDUCTION FOR DIS-
CRETIONARY SPENDING.— 
(1) ELIMINATING A DISCRETIONARY SPENDING 
EXCESS.—OMB shall include in its final order a re-
quirement that each discretionary account shall be 
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reduced by an amount of budget authority calculated 
by multiplying the baseline level of budgetary re-
sources in that account at that time by the uniform 
percentage necessary to reduce outlays sufficient to 
eliminate an excess spending amount. 
(2) PART-YEAR
APPROPRIATIONS.—If, on the 
date a final spending reduction is issued, there is in 
effect an Act making or continuing appropriations 
for part of a fiscal year for any budget account, then 
the dollar spending reduction calculated for that ac-
count under paragraph (1) shall be subtracted 
from— 
(A) the annualized amount otherwise avail-
able by law in that account under that or a sub-
sequent part-year appropriation; and 
(B) when a full-year appropriation for that 
account is enacted, from the amount otherwise 
provided by the full-year appropriation. 
(b) ELIMINATING A DIRECT SPENDING EXCESS.— 
OMB shall include in its final order a requirement that 
each direct spending account shall be reduced by an 
amount of budget authority calculated by multiplying the 
baseline level of budgetary resources in that account at 
that time by the uniform percentage necessary to reduce 
outlays sufficient to eliminate an excess spending amount. 
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(c) UNIFORM PERCENTAGE.—The percentage re-
quired to produce a spending reduction, as ordered by a 
final order, shall be calculated by OMB by adding all 
budgetary resources of the Government, and reducing that 
amount by an amount sufficient to reduce the total 
amount of outlays of the Government to equal, or lower, 
a level of outlays than the amount set forth in the guide-
line period. 
SEC. 706. SPECIAL PROCEDURES. 
(a) SOCIAL SECURITY BENEFITS.—Benefits payable 
under the old-age, survivors, and disability insurance pro-
gram established under title II of the Social Security Act, 
shall be exempt from a spending reduction required by a 
final order if— 
(1) the Social Security Trustees issue, in the 
fiscal year such order is issued, a statement that the 
old-age, survivors, and disability Trust Funds have 
achieved or will achieve solvency under current law 
within the guideline period beginning in the year fol-
lowing the year the final order is issued; 
(2) it would require an amount that exceeds 
such amount as the Trustees determine are required 
to achieve solvency in that period, as determined by 
the Social Security Trustees; and 
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(3) it would require a spending reduction of an 
amount greater than 1 percent of budgetary re-
sources in any fiscal year within the guideline pe-
riod. 
(b) NET INTEREST.—A spending reduction shall not 
cause any effect on payments for net interest (as set forth 
in function 900). 
(c) OBLIGATED BALANCES.—Obligated balances of 
budget authority carried over from prior fiscal years shall 
be exempt from a spending reduction under any order 
issued under this title. 
(d) APPLICATION TO FAST GROWING PROGRAMS.— 
Any program whose growth in the budget year is less than 
the rate of inflation as determined by OMB, shall be ex-
empt from a spending reduction issued under this title. 
(e) LIMITATION
ON SPENDING REDUCTIONS.—No 
program shall be subject to a spending reduction of more 
than 1 percent of its budgetary resources. 
(f) UNIFORM PERCENTAGE RATE OF REDUCTION 
AND OTHER LIMITATIONS.—All spending reductions with 
respect to a fiscal year shall be made so as to ensure that 
outlays for each program, project, activity, or account in-
volved are reduced by a percentage rate that is uniform 
for all such programs, projects, activities, and accounts, 
and may not be made so as to achieve a percentage rate 
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of reduction in any such item exceeding the rate specified 
in the order. 
(g) EFFECT OF A FINAL ORDER.—Upon the issue 
of a final order, a spending reduction shall be ordered for 
all nonexempt spending accounts. The spending reduction 
shall be effective as follows: 
(1) Budgetary resources subject to a spending 
reduction to any discretionary account shall be per-
manently cancelled. 
(2) The same percentage spending reduction 
shall apply to all programs, projects, and activities 
within a budget account (with programs, projects, 
and activities as delineated in the appropriation Act 
or accompanying report for the relevant fiscal year 
covering that account, or for accounts not included 
in appropriation Acts, as delineated in the most re-
cently submitted President’s budget). 
(3) Administrative regulations implementing a 
spending reduction shall be made within 120 days of 
the issue of a final order. 
(4) Budgetary resources subject to a spending 
reduction in revolving, trust, and special fund ac-
counts and offsetting collections subject to a spend-
ing reduction in appropriation accounts shall not be 
available for obligation during the fiscal year in 
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which the spending reduction is issued, and shall be 
available in subsequent years only to the extent as 
provided by law. 
SEC. 707. SUSPENSION IN THE EVENT OF WAR OR LOW 
GROWTH. 
(a) PROCEDURES IN THE EVENT OF A LOW GROWTH 
REPORT.— 
(1) LOW GROWTH REPORT.—Whenever OMB or 
CBO issues a low-growth report under section 
710(a), the majority leader of the House of Rep-
resentatives and the majority leader of the Senate 
shall introduce a joint resolution suspending the rel-
evant provisions of this title, titles III and IV of the 
Congressional Budget Act of 1974, and section 1103 
of title 31, United States Code. 
(2) FORM OF JOINT RESOLUTION.— 
(A) The matter after the resolving clause 
in any joint resolution introduced pursuant to 
paragraph (1) shall be as follows: ‘‘That the 
Congress declares that the conditions specified 
in section 711(a) of the Budget Control Act of 
2008 are met, and the implementation of the 
Congressional Budget and Impoundment Con-
trol Act of 1974, chapter 11 of title 31, United 
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States Code, and the Budget Control Act of 
2008 is hereby suspended.’’. 
(B) The title of the joint resolution shall 
be ‘‘A joint resolution suspending certain provi-
sions of law pursuant to section 711(a) of the 
Budget Control Act of 2008.’’ 
(3) A joint resolution introduced pursuant to 
paragraph (1), an amendment thereto, or a con-
ference report thereon, shall only be passed if it re-
ceives not less than three-fifths vote of approval of 
the total number of Members of the House of Rep-
resentatives and the Senate. 
(b) SUSPENSION OF SPENDING REDUCTION PROCE-
DURES.—Upon the enactment of a declaration of war or 
a joint resolution described in subsection (a)— 
(1) the subsequent issuance of any final spend-
ing reduction is precluded; 
(2) titles III and IV of the Congressional Budg-
et Act of 1974 are suspended; and 
(3) section 1103 of title 31, United States 
Code, is suspended. 
(c) RESTORATION OF SPENDING CONTROL PROCE-
DURES.— 
(1) In the event of a suspension of spending 
control procedures due to a declaration of war, then, 
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effective with the fifth fiscal year that begins in the 
session after the state of war is concluded, the provi-
sions of subsection (b) triggered by that declaration 
of war are no longer effective. 
(2) In the event of a suspension of spending 
control procedures due to the enactment of a joint 
resolution described in subsection (a), then, effective 
with regard to the first fiscal year beginning at least 
12 months after the enactment of that resolution, 
the provisions of subsection (b) triggered by that 
resolution are no longer effective. 
SEC. 708. ALTERNATE SPENDING REDUCTION LEGISLATION 
IN THE HOUSE OF REPRESENTATIVES. 
(a) INTRODUCTION OF JOINT RESOLUTION.—At any 
time after the Director of OMB issues a final order for 
a fiscal year, but before the end of the session of Congress 
in session on the date of the issuance of such order, the 
majority leader of the House of Representatives may in-
troduce a joint resolution which contains provisions direct-
ing the President to modify the most recent final order 
issued pursuant to this title, or provide an alternative to 
eliminate the spending excess for such fiscal year or years. 
After the introduction of the first such joint resolution in 
either House of Congress in any calendar year, then no 
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other joint resolution introduced pursuant to this section 
shall be subject to the procedures set forth in this section. 
(b) PROCEDURES
FOR CONSIDERATION
OF JOINT 
RESOLUTIONS.— 
(1) Any committee of the House of Representa-
tives to which an alternative spending compliance 
measure is referred shall report it to the House 
without amendment not later than the seventh legis-
lative day after the date of its introduction. If a 
committee fails to report the bill within that period 
or the House has adopted a concurrent resolution 
providing for adjournment sine die at the end of a 
Congress, it shall be in order to move that the 
House discharge the committee from further consid-
eration of the bill. Such a motion shall be in order 
only at a time designated by the Speaker in the leg-
islative schedule within two legislative days after the 
day on which the proponent announces his intention 
to offer the motion. Such a motion shall not be in 
order after a committee has reported a spending 
compliance measure with respect to that special mes-
sage or after the House has disposed of a motion to 
discharge with respect to that special message. The 
previous question shall be considered as ordered on 
the motion to its adoption without intervening mo-
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tion except twenty minutes of debate equally divided 
and controlled by the proponent and an opponent. If 
such a motion is adopted, the House shall proceed 
immediately to consider the spending compliance 
measure bill in accordance with paragraph (3). A 
motion to reconsider the vote by which the motion 
is disposed of shall not be in order. 
(2) After a spending compliance measure is re-
ported or a committee has been discharged from fur-
ther consideration, or the House has adopted a con-
current resolution providing for adjournment sine 
die at the end of a Congress, it shall be in order to 
move to proceed to consider the spending compliance 
measure in the House. Such a motion shall be in 
order only at a time designated by the Speaker in 
the legislative schedule within two legislative days 
after the day on which the proponent announces his 
intention to offer the motion. Such a motion shall 
not be in order after the House has disposed of a 
motion to proceed with respect to that special mes-
sage. The previous question shall be considered as 
ordered on the motion to its adoption without inter-
vening motion. A motion to reconsider the vote by 
which the motion is disposed of shall not be in order. 
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(3) The spending compliance measure shall be 
considered as read. All points of order against an 
approval bill and against its consideration are 
waived. The previous question shall be considered as 
ordered on an approval bill to its passage without in-
tervening motion except five hours of debate equally 
divided and controlled by the proponent and an op-
ponent and one motion to limit debate on the bill. 
A motion to reconsider the vote on passage of the 
bill shall not be in order. 
(4) A spending compliance measure received 
from the Senate shall not be referred to committee. 
(c) VOTING.—The vote on final passage of a joint res-
olution or conference report thereon referred to in para-
graph (1) shall require approval of not less than three- 
fifths of the Members of the House of Representatives. 
SEC. 709. ALTERNATE SPENDING REDUCTION LEGISLATION 
IN THE SENATE. 
(a) INTRODUCTION OF JOINT RESOLUTION.—At any 
time after OMB issues a final order for a fiscal year, but 
before the end of the session of Congress in session on 
the date of the issuance of such order, the majority leader 
of either House of Congress may introduce a joint resolu-
tion which contains provisions directing the President to 
modify the most recent final order provide an alternative 
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to eliminate the spending excess for such fiscal year or 
years. After the introduction of the first such joint resolu-
tion in either House of Congress in any calendar year, 
then no other joint resolution introduced in such House 
in such calendar year shall be subject to the procedures 
set forth in this section. 
(b) PROCEDURES
FOR CONSIDERATION
OF JOINT 
RESOLUTIONS.— 
(1) REFERRAL TO COMMITTEE.—A joint resolu-
tion introduced in the Senate under subsection (a) 
shall not be referred to a committee of the Senate 
and shall be placed on the calendar pending disposi-
tion of such joint resolution in accordance with this 
subsection. 
(2) CONSIDERATION IN THE SENATE.—On or 
after the third calendar day (excluding Saturdays, 
Sundays, and legal holidays) beginning after a joint 
resolution is introduced under subsection (a), not-
withstanding any rule or precedent of the Senate, in-
cluding rule XXII of the Standing Rules of the Sen-
ate, it is in order (even though a previous motion to 
the same effect has been disagreed to) for any Mem-
ber of the Senate to move to proceed to the consider-
ation of the joint resolution. The motion is not in 
order after the eighth calendar day (excluding Sat-
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urdays, Sundays, and legal holidays) beginning after 
a joint resolution (to which the motion applies) is in-
troduced. The joint resolution is privileged in the 
Senate. A motion to reconsider the vote by which the 
motion is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consideration of 
the joint resolution is agreed to, the Senate shall im-
mediately proceed to consideration of the joint reso-
lution without intervening motion, order, or other 
business, and the joint resolution shall remain the 
unfinished business of the Senate until disposed of. 
(3) DEBATE IN THE SENATE.— 
(A) In the Senate, debate on a joint resolu-
tion introduced under subsection (a), amend-
ments thereto, and all debatable motions and 
appeals in connection therewith shall be limited 
to not more than 10 hours, which shall be di-
vided equally between the majority leader and 
the minority leader (or their designees). 
(B) A motion to postpone, or a motion to 
proceed to the consideration of other business is 
not in order. A motion to reconsider the vote by 
which the joint resolution is agreed to or dis-
agreed to is not in order, and a motion to re-
commit the joint resolution is not in order. 
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(C)(i) No amendment that is not germane 
to the provisions of the joint resolution shall be 
in order in the Senate. In the Senate, an 
amendment, any amendment to an amendment, 
or any debatable motion or appeal is debatable 
for not to exceed 30 minutes to be equally di-
vided between, and controlled by, the mover and 
the majority leader (or their designees), except 
that in the event that the majority leader favors 
the amendment, motion, or appeal, the minority 
leader (or the minority leader’s designee) shall 
control the time in opposition to the amend-
ment, motion, or appeal. 
(ii) In the Senate, an amendment that is 
otherwise in order shall be in order notwith-
standing the fact that it amends the joint reso-
lution in more than one place or amends lan-
guage previously amended. It shall not be in 
order in the Senate to vote on the question of 
agreeing to such a joint resolution or any 
amendment thereto unless the figures then con-
tained in such joint resolution or amendment 
are mathematically consistent. 
(4) VOTE
ON
FINAL
PASSAGE.—Immediately 
following the conclusion of the debate on a joint res-
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383 
olution introduced under subsection (a), a single 
quorum call at the conclusion of the debate if re-
quested in accordance with the rules of the Senate, 
and the disposition of any pending amendments 
under paragraph (3), the vote on final passage of 
the joint resolution shall occur. 
(5) APPEALS.—Appeals from the decisions of 
the Chair shall be decided without debate. 
(6) CONFERENCE
REPORTS.—In the Senate, 
points of order under titles III and IV of the Con-
gressional Budget Act of 1974 are applicable to a 
conference report on the joint resolution or any 
amendments in disagreement thereto. 
(7) RESOLUTION FROM OTHER HOUSE.—If, be-
fore the passage by the Senate of a joint resolution 
of the Senate introduced under subsection (a), the 
Senate receives from the House of Representatives a 
joint resolution introduced under subsection (a), 
then the following procedures shall apply: 
(A) The joint resolution of the House of 
Representatives shall not be referred to a com-
mittee and shall be placed on the calendar. 
(B) With respect to a joint resolution in-
troduced under subsection (a) in the Senate— 
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(i) the procedure in the Senate shall 
be the same as if no joint resolution had 
been received from the House; but 
(ii)(I) the vote on final passage shall 
be on the joint resolution of the House if 
it is identical to the joint resolution then 
pending for passage in the Senate; or 
(II) if the joint resolution from the 
House is not identical to the joint resolu-
tion then pending for passage in the Sen-
ate and the Senate then passes the Senate 
joint resolution, the Senate shall be consid-
ered to have passed the House joint resolu-
tion as amended by the text of the Senate 
joint resolution. 
(C) Upon disposition of the joint resolution 
received from the House, it shall no longer be 
in order to consider the resolution originated in 
the Senate. 
(8) SENATE ACTION ON HOUSE RESOLUTION.— 
If the Senate receives from the House of Represent-
atives a joint resolution introduced pursuant to this 
section after the Senate has disposed of a Senate 
originated resolution which is identical to the House 
passed joint resolution, the action of the Senate with 
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regard to the disposition of the Senate originated 
joint resolution shall be deemed to be the action of 
the Senate with regard to the House originated joint 
resolution. If it is not identical to the House passed 
joint resolution, then the Senate shall be considered 
to have passed the joint resolution of the House as 
amended by the text of the Senate joint resolution. 
(9) The vote on final passage of a joint resolu-
tion or conference report thereon referred to in para-
graph (1) shall require approval of not less than 
three-fifths of the Members of the Senate. 
SEC. 710. GENERAL PROVISIONS. 
(a) LOW GROWTH REPORT.—OMB and CBO shall 
notify the Congress if— 
(1) during the period consisting of the quarter 
during which such notification is given, the quarter 
preceding such notification, and the 4 quarters fol-
lowing such notification, OMB or CBO has deter-
mined that real economic growth is projected or esti-
mated to be less than zero with respect to each of 
any 2 consecutive quarters within such period; or 
(2) the most recent of the Department of Com-
merce’s advance preliminary or final reports of ac-
tual real economic growth indicate that the rate of 
real economic growth for each of the most recently 
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reported quarter and the immediately preceding 
quarter is less than one percent. 
(b) ECONOMIC AND TECHNICAL ASSUMPTIONS.—For 
all purposes of this title, OMB shall use the same eco-
nomic and technical assumptions as used in the most re-
cent budget submitted under section 1105(a) of title 31, 
United States Code. 
(c) SOCIAL
SECURITY
TRUSTEE
REPORT.—The 
Trustees of the Social Security Administration shall annu-
ally issue a report consistent with section 708(c) and OMB 
shall include such report in a final order and a preview 
order. 
(d) CONGRESSIONAL SPENDING LIMIT.—(1) The 
Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end of title III the fol-
lowing new section: 
‘‘SEC. 316 AGGREGATE SPENDING LIMITS. 
‘‘It shall not be in order in the House of Representa-
tives or the Senate to consider any bill, joint resolution, 
amendment, motion, or conference report that would cause 
an excess spending amount, as defined in section 
701(c)(16) of the Budget Control Act of 2008.’’. 
(2) The table of contents set forth in section 1(b) of 
the Congressional Budget and Impoundment Control Act 
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