455
HR 2488 PCS
(2) The amendment made by paragraph (1)
shall take effect as if included in the amendments
made by section 1201 of the Small Business Job
Protection Act of 1996.
(c) AMOUNT
OF IRA CONTRIBUTION
OF LESSER
EARNING SPOUSE.—
(1) Clause (ii) of section 219(c)(1)(B) is
amended by striking ‘‘and’’ at the end of subclause
(I), by redesignating subclause (II) as subclause
(III), and by inserting after subclause (I) the fol-
lowing new subclause:
‘‘(II) the amount of any des-
ignated nondeductible contribution (as
defined in section 408(o)) on behalf of
such spouse for such taxable year,
and’’.
(2) The amendment made by paragraph (1)
shall take effect as if included in section 1427 of the
Small Business Job Protection Act of 1996.
(d) MODIFIED ENDOWMENT CONTRACTS.—
(1) Paragraph (2) of section 7702A(a) is
amended by inserting ‘‘or this paragraph’’ before the
period.
456
HR 2488 PCS
(2) Clause (ii) of section 7702A(c)(3)(A) is
amended by striking ‘‘under the contract’’ and in-
serting ‘‘under the old contract’’.
(3) The amendments made by this subsection
shall take effect as if included in the amendments
made by section 5012 of the Technical and Miscella-
neous Revenue Act of 1988.
(e) LUMP-SUM DISTRIBUTIONS.—
(1) Clause (ii) of section 401(k)(10)(B) is
amended by adding at the end the following new
sentence: ‘‘Such term includes a distribution of an
annuity contract from—
‘‘(I) a trust which forms a part
of a plan described in section 401(a)
and which is exempt from tax under
section 501(a), or
‘‘(II) an annuity plan described
in section 403(a).’’.
(2) The amendment made by paragraph (1)
shall take effect as if included in section 1401 of the
Small Business Job Protection Act of 1996.
(f) TENTATIVE
CARRYBACK
ADJUSTMENTS
OF
LOSSES FROM SECTION 1256 CONTRACTS.—
457
HR 2488 PCS
(1) Subsection (a) of section 6411 is amended
by striking ‘‘section 1212(a)(1)’’ and inserting ‘‘sub-
section (a)(1) or (c) of section 1212’’.
(2) The amendment made by paragraph (1)
shall take effect as if included in the amendments
made by section 504 of the Economic Recovery Tax
Act of 1981.
SEC. 1605. CLERICAL CHANGES.
(1) Subsection (f) of section 67 is amended by
striking ‘‘the last sentence’’ and inserting ‘‘the sec-
ond sentence’’.
(2) The heading for paragraph (5) of section
408(d) is amended to read as follows:
‘‘(5) DISTRIBUTIONS
OF
EXCESS
CONTRIBU-
TIONS AFTER DUE DATE FOR TAXABLE YEAR AND
CERTAIN EXCESS ROLLOVER CONTRIBUTIONS.—’’.
(3) The heading for subparagraph (B) of sec-
tion 529(e)(3) is amended by striking ‘‘UNDER
GUARANTEED PLANS’’.
(4)(A) Subsection (e) of section 678 is amended
by striking ‘‘an electing small business corporation’’
and inserting ‘‘an S corporation’’.
(B) Clause (v) of section 6103(e)(1)(D) is
amended to read as follows:
458
HR 2488 PCS
‘‘(v) if the corporation was an S cor-
poration, any person who was a share-
holder during any part of the period cov-
ered by such return during which an elec-
tion under section 1362(a) was in effect,
or’’.
(5) Subparagraph (B) of section 995(b)(3) is
amended by striking ‘‘the Military Security Act of
1954 (22 U.S.C. 1934)’’ and inserting ‘‘section 38
of the International Security Assistance and Arms
Export Control Act of 1976 (22 U.S.C. 2778)’’.
(6) Subparagraph (B) of section 4946(c)(3) is
amended by striking ‘‘the lowest rate of compensa-
tion prescribed for GS–16 of the General Schedule
under section 5332’’ and inserting ‘‘the lowest rate
of basic pay for the Senior Executive Service under
section 5382’’.
TITLE XVII—COMMITMENT TO
DEBT REDUCTION
SEC. 1701. COMMITMENT TO DEBT REDUCTION.
(a) FINDINGS.—The Congress finds that—
(1) the national debt of the United States held
by the public is $3.619 trillion as of fiscal year
1999;
459
HR 2488 PCS
(2) the Federal budget is projected to produce
a surplus each year in the next 10 fiscal years; and
(3) refunding taxes and reducing the national
debt held by the public will assure continued eco-
nomic growth and financial freedom for future gen-
erations.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the national debt held by the public
shall be reduced from $3.619 trillion to a level below $1.61
trillion by fiscal year 2009.
TITLE XVIII—BUDGETARY
TREATMENT
SEC. 1801. EXCLUSION OF EFFECTS OF THIS ACT FROM
PAYGO SCORECARD.
Upon the enactment of this Act, the Director of the
Office of Management and Budget shall not make any es-
timate of changes in direct spending outlays and receipts
under section 252(d) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 resulting from the en-
actment of this Act.
Passed the House of Representatives July 22, 1999.
Attest:
JEFF TRANDAHL,
Clerk.