instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arson Prevention Act of 1994''.

SEC. 2. FINDINGS.

    Congress finds that_
        (1) arson is a serious and costly problem, and is responsible 
    for approximately 25 percent of all fires in the United States;
        (2) arson is a leading cause of fire deaths, accounting for 
    approximately 700 deaths annually in the United States, and is the 
    leading cause of property damage due to fire in the United States;
        (3) estimates of arson property losses are in the range of 
    $2,000,000,000 annually, or approximately 1 of every 4 dollars lost 
    to fire;
        (4) the incidence of arson in the United States is seriously 
    underreported, in part because of the lack of adequate 
    participation by local jurisdictions in the National Fire Incident 
    Reporting System (NFIRS) and the Uniform Crime Reporting (UCR) 
    program;
        (5) there is a need for expanded training programs for arson 
    investigators;
        (6) there is a need for improved programs designed to enable 
    volunteer firefighters to detect arson crimes and to preserve 
    evidence vital to the investigation and prosecution of arson cases;
        (7) according to the National Fire Protection Association, of 
    all the suspicious and incendiary fires estimated to occur, only 
    \1/3\ are confirmed as arson; and
        (8) improved training of arson investigators will increase the 
    ability of fire departments to identify suspicious and incendiary 
    fires, and will result in increased and more effective prosecution 
    of arson offenses.

SEC. 3. ARSON PREVENTION GRANTS.

    The Federal Fire Prevention and Control Act of 1974 is amended by 
inserting after section 24 (15 U.S.C. 2220) the following new section:

``SEC. 25. ARSON PREVENTION GRANTS.

    ``(a) Definitions._As used in this section:
        ``(1) Arson._The term `arson' includes all incendiary and 
    suspicious fires.
        ``(2) Office._The term `Office' means the Office of Fire 
    Prevention and Arson Control of the United States Fire 
    Administration.
    ``(b) Grants._The Administrator, acting through the Office, shall 
carry out a demonstration program under which not more than 10 grant 
awards shall be made to States, or consortia of States, for programs 
relating to arson research, prevention, and control.
    ``(c) Goals._In carrying out this section, the Administrator shall 
award 2-year grants on a competitive, merit basis to States, or 
consortia of States, for projects that promote one or more of the 
following goals:
        ``(1) To improve the training by States leading to professional 
    certification of arson investigators, in accordance with nationally 
    recognized certification standards.
        ``(2) To provide resources for the formation of arson task 
    forces or interagency organizational arrangements involving police 
    and fire departments and other relevant local agencies, such as a 
    State arson bureau and the office of a fire marshal of a State.
        ``(3) To combat fraud as a cause of arson and to advance 
    research at the State and local levels on the significance and 
    prevention of fraud as a motive for setting fires.
        ``(4) To provide for the management of arson squads, including_
            ``(A) training courses for fire departments in arson case 
        management, including standardization of investigative 
        techniques and reporting methodology;
            ``(B) the preparation of arson unit management guides; and
            ``(C) the development and dissemination of new public 
        education materials relating to the arson problem.
        ``(5) To combat civil unrest as a cause of arson and to advance 
    research at the State and local levels on the prevention and 
    control of arson linked to urban disorders.
        ``(6) To combat juvenile arson, such as juvenile fire-setter 
    counseling programs and similar intervention programs, and to 
    advance research at the State and local levels on the prevention of 
    juvenile arson.
        ``(7) To combat drug-related arson and to advance research at 
    the State and local levels on the causes and prevention of drug-
    related arson.
        ``(8) To combat domestic violence as a cause of arson and to 
    advance research at the State and local levels on the prevention of 
    arson arising from domestic violence.
        ``(9) To combat arson in rural areas and to improve the 
    capability of firefighters to identify and prevent arson initiated 
    fires in rural areas and public forests.
        ``(10) To improve the capability of firefighters to identify 
    and combat arson through expanded training programs, including_
            ``(A) training courses at the State fire academies; and
            ``(B) innovative courses developed with the Academy and 
        made available to volunteer firefighters through regional 
        delivery methods, including teleconferencing and satellite 
        delivered television programs.
    ``(d) Structuring of Applications._The Administrator shall assist 
grant applicants in structuring their applications so as to ensure that 
at least one grant is awarded for each goal described in subsection 
(c).
    ``(e) State Qualification Criteria._In order to qualify for a grant 
under this section, a State, or consortium of States, shall provide 
assurances adequate to the Administrator that the State or consortium_
        ``(1) will obtain at least 25 percent of the cost of programs 
    funded by the grant, in cash or in kind, from non-Federal sources;
        ``(2) will not as a result of receiving the grant decrease the 
    prior level of spending of funds of the State or consortium from 
    non-Federal sources for arson research, prevention, and control 
    programs;
        ``(3) will use no more than 10 percent of funds provided under 
    the grant for administrative costs of the programs; and
        ``(4) is making efforts to ensure that all local jurisdictions 
    will provide arson data to the National Fire Incident Reporting 
    System or the Uniform Crime Reporting program.
    ``(f) Extension._A grant awarded under this section may be extended 
for one or more additional periods, at the discretion of the 
Administrator, subject to the availability of appropriations.
    ``(g) Technical Assistance._The Administrator shall provide 
technical assistance to States in carrying out programs funded by 
grants under this section.
    ``(h) Consultation and Cooperation._In carrying out this section, 
the Administrator shall consult and cooperate with other Federal 
agencies to enhance program effectiveness and avoid duplication of 
effort, including the conduct of regular meetings initiated by the 
Administrator with representatives of other Federal agencies concerned 
with arson and concerned with efforts to develop a more comprehensive 
profile of the magnitude of the national arson problem.
    ``(i) Assessment._Not later than 18 months after the date of 
enactment of this subsection, the Administrator shall submit a report 
to Congress that_
        ``(1) identifies grants made under this section;
        ``(2) specifies the identity of grantees;
        ``(3) states the goals of each grant; and
        ``(4) contains a preliminary assessment of the effectiveness of 
    the grant program under this section.
    ``(j) Regulations._Not later than 90 days after the date of 
enactment of this subsection, the Administrator shall issue regulations 
to implement this section, including procedures for grant applications.
    ``(k) Administration._The Administrator shall directly administer 
the grant program required by this section, and shall not enter into 
any contract under which the grant program or any portion of the 
program will be administered by another party.
    ``(l) Purchase of American Made Equipment and Products._
        ``(1) Sense of congress._It is the sense of Congress that any 
    recipient of a grant under this section should purchase, when 
    available and cost-effective, American made equipment and products 
    when expending grant monies.
        ``(2) Notice to recipients of assistance._In allocating grants 
    under this section, the Administrator shall provide to each 
    recipient a notice describing the statement made in paragraph (1) 
    by the Congress.''.

SEC. 4. VOLUNTEER FIREFIGHTER TRAINING.

    Section 24(a)(2) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2220(a)(2)) is amended by inserting before the 
semicolon the following: ``, with particular emphasis on the needs of 
volunteer firefighters for improved and more widely available arson 
training courses''.

SEC. 5. CPR TRAINING.

    The Federal Fire Prevention and Control Act of 1974 is amended by 
adding at the end the following new section:

``SEC. 32. CPR TRAINING.

    ``No funds shall be made available to a State or local government 
under section 25 unless such government has a policy to actively 
promote the training of its firefighters in cardiopulmonary 
resuscitation.''.

SEC. 6. FEDERAL EMPLOYEE HOUSING EXCEPTIONS.

    Section 31(c)(1) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2227(c)(1)) is amended_
        (1) in subparagraph (A), by striking ``No Federal'' and 
    inserting in lieu thereof ``Except as otherwise provided in this 
    paragraph, no Federal''; and
        (2) by adding at the end the following new subparagraphs:
    ``(C) Housing covered by this paragraph that does not have an 
adequate and reliable electrical system shall not be subject to the 
requirement under subparagraph (A) for protection by hard-wired smoke 
detectors, but shall be protected by battery operated smoke detectors.
    ``(D) If funding has been programmed or designated for the 
demolition of housing covered by this paragraph, such housing shall not 
be subject to the fire protection requirements of subparagraph (A), but 
shall be protected by battery operated smoke detectors.''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 17 of the Federal Fire Prevention and Control Act of 1974 
(15 U.S.C. 2216) is amended by adding at the end the following new 
subsection:
    ``(h) In addition to any other amounts that are authorized to be 
appropriated to carry out this Act, there are authorized to be 
appropriated to carry out this Act_
        ``(1) $500,000 for fiscal year 1995 for basic research on the 
    development of an advanced course on arson prevention;
        ``(2) $2,000,000 for fiscal year 1996 for the expansion of 
    arson investigator training programs at the Academy under section 
    24 and at the Federal Law Enforcement Training Center, or through 
    regional delivery sites;
        ``(3) $4,000,000 for each of fiscal years 1995 and 1996 for 
    carrying out section 25, except for salaries and expenses for 
    carrying out section 25; and
        ``(4) $250,000 for each of the fiscal years 1995 and 1996 for 
    salaries and expenses for carrying out section 25.''.

SEC. 8. SUNSET.

    Notwithstanding any other provision of this Act, no funds are 
authorized to be appropriated for any fiscal year after fiscal year 
1996 for carrying out the programs for which funds are authorized by 
this Act, or the amendments made by this Act.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.
answer:
Arson Prevention Act of 1994 - Amends the Fire Prevention and Control Act of 1974 to direct the Administrator of the United States Fire Administration, acting through the Office of Fire Prevention and Arson Control, to carry out a demonstration program under which not more than ten grant awards shall be made to States or consortia of States (States) for programs relating to arson research, prevention, and control. 
Directs the Administrator, in carrying out such provision, to award two-year grants on a competitive, merit basis to States for projects that promote one or more of specified goals, including:  (1) improving the training by States leading to professional certification of arson investigators; (2) providing resources for the formation of arson task forces or interagency organizational arrangements involving the police and fire departments and other relevant local agencies; (3) combating fraud as a cause of arson and advancing research at the State and local levels on the significance and prevention of fraud as a motive for setting fires; (4) combating juvenile arson, drug-related arson, and domestic violence as a cause of arson; and (5) improving the capability of firefighters to identify and combat arson through expanded training programs. 
Sets forth provisions regarding:  (1) the structuring of applications; (2) State qualification criteria; (3) the extension of grants; (4) technical assistance; (5) consultation and cooperation with other Federal agencies; (6) assessment; and (7) the purchase of American made equipment and products by grant recipients. 
(Sec. 4) Includes within a provision requiring the Administrator to provide training and instructional materials in skills and knowledge necessary to assist Federal, State, and local fire service and law enforcement personnel in arson prevention, detection, and control, a requirement that particular emphasis be placed on the needs of volunteer firefighters for improved and more widely available arson training courses. 
(Sec. 5) Prohibits making certain funds available to a State or local government under the Act unless such government has a policy to actively promote the training of its firefighters in cardiopulmonary resuscitation. 
(Sec. 6) Exempts Federal employee housing that does not have an adequate and reliable electrical system from the requirement for protection by hard-wired (but requires battery operated) smoke detectors. 
(Sec. 7) Authorizes appropriations, including appropriations for basic research on the development of an advanced course on arson prevention and for the expansion of arson investigator training programs at the National Fire Academy and the Federal Law Enforcement Training Center or through regional delivery sites. 
(Sec. 8) Prohibits any funds from being authorized to be appropriated for any fiscal year after FY 1996 for carrying out the programs for which funds are authorized by this Act or the amendments made by this Act.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Workforce Improvement and 
Jobs Protection Act''.

SEC. 2. EXEMPTING ALIENS EARNING MASTER'S OR HIGHER DEGREE IN UNITED 
              STATES FROM NUMERICAL LIMITATIONS ON H-1B NONIMMIGRANTS.

    Section 214(g) of the Immigration and Nationality Act (8 U.S.C. 
1184(g)) is amended by adding at the end the following:
    ``(9) For any fiscal year, the applicable numerical limitation 
contained in paragraph (1)(A) shall not apply to any nonimmigrant alien 
issued a visa or otherwise provided status under section 
101(a)(15)(H)(i)(b) who has earned a master's or higher degree from an 
institution of higher education (as defined in section 101(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1001(a))), until the number of 
aliens who are exempted from such numerical limitation during such year 
exceeds 20,000.''.

SEC. 3. MAKING PERMANENT CERTAIN REQUIREMENTS AND AUTHORITIES WITH 
              RESPECT TO H-1B NONIMMIGRANTS.

    (a) Attestation Requirements.--Section 212(n)(1)(E)(ii) of the 
Immigration and Nationality Act (8 U.S.C. 1182(n)(1)(E)(ii)) is amended 
by striking ``subparagraph, and before October 1, 2003,'' and inserting 
``subparagraph''.
    (b) Fee.--Section 214(c)(9)(A) of the Immigration and Nationality 
Act (8 U.S.C. 1184(c)(9)(A)) is amended by striking ``before October 1, 
2003''.
    (c) Department of Labor Investigative Authorities.--Section 
413(e)(2) of the American Competitiveness and Workforce Improvement Act 
of 1998 (8 U.S.C. 1182 note) is repealed.
    (d) Effective Dates.--
            (1) Attestation requirements.--The amendment made by 
        subsection (a) shall apply to applications under section 
        212(n)(1) of the Immigration and Nationality Act filed on or 
        after the date that is 30 days after the date of the enactment 
        of this Act.
            (2) Fee.--The amendment made by subsection (b) shall apply 
        to petitions under section 214(c) of the Immigration and 
        Nationality Act filed on or after the date that is 30 days 
        after the date of the enactment of this Act.
            (3) Department of labor investigative authority.--The 
        amendment made by subsection (c) shall take effect on the date 
        of the enactment of this Act.

SEC. 4. FRAUD PREVENTION AND DETECTION FEE.

    (a) Imposition of Fee.--Section 214(c) of the Immigration and 
Nationality Act (8 U.S.C. 1184(c)) is amended by adding at the end the 
following:
    ``(12)(A) In addition to any other fees authorized by law, the 
Secretary of Homeland Security shall impose a fraud prevention and 
detection fee on an employer filing a petition under paragraph (1)--
            ``(i) initially to grant an alien nonimmigrant status 
        described in subparagraph (H)(i)(b) or (L) of section 
        101(a)(15); or
            ``(ii) to obtain authorization for an alien having such 
        status to change employers.
    ``(B) In addition to any other fees authorized by law, the 
Secretary of State shall impose a fraud prevention and detection fee on 
an alien filing an application abroad for a visa authorizing admission 
to the United States as a nonimmigrant described in section 
101(a)(15)(L), if the alien is covered under a blanket petition 
described in paragraph (2)(A).
    ``(C) The amount of the fee imposed under subparagraph (A) or (B) 
shall be $500.
    ``(D) The fee imposed under subparagraph (A) or (B) shall only 
apply to principal aliens and not to the spouses or children who are 
accompanying or following to join such principal aliens.
    ``(E) Fees collected under this paragraph shall be deposited in the 
Treasury in accordance with section 286(v).''.
    (b) Establishment of Account; Use of Fees.--Section 286 of the 
Immigration and Nationality Act (8 U.S.C. 1356) is amended by adding at 
the end the following:
    ``(v) H-1B and L Fraud Prevention and Detection Account.--
            ``(1) In general.--There is established in the general fund 
        of the Treasury a separate account, which shall be known as the 
        `H-1B and L Fraud Prevention and Detection Account'. 
        Notwithstanding any other provision of law, there shall be 
        deposited as offsetting receipts into the account all fees 
        collected under section 214(c)(12).
            ``(2) Use of fees to combat fraud.--
                    ``(A) Secretary of state.--One-third of the amounts 
                deposited into the H-1B and L Fraud Prevention and 
                Detection Account shall remain available to the 
                Secretary of State until expended for programs and 
                activities at United States embassies and consulates 
                abroad--
                            ``(i) to increase the number diplomatic 
                        security personnel assigned exclusively to the 
                        function of preventing and detecting fraud by 
                        applicants for visas described in subparagraph 
                        (H)(i) or (L) of section 101(a)(15);
                            ``(ii) otherwise to prevent and detect such 
                        fraud pursuant to the terms of a memorandum of 
                        understanding or other cooperative agreement 
                        between the Secretary of State and the 
                        Secretary of Homeland Security; and
                            ``(iii) upon request by the Secretary of 
                        Homeland Security, to assist such Secretary in 
                        carrying out the fraud prevention and detection 
                        programs and activities described in 
                        subparagraph (B).
                    ``(B) Secretary of homeland security.--One-third of 
                the amounts deposited into the H-1B and L Fraud 
                Prevention and Detection Account shall remain available 
                to the Secretary of Homeland Security until expended 
                for programs and activities to prevent and detect fraud 
                with respect to petitions under paragraph (1) or (2)(A) 
                of section 214(c) to grant an alien nonimmigrant status 
                described in subparagraph (H)(i) or (L) of section 
                101(a)(15).
                    ``(C) Secretary of labor.--One-third of the amounts 
                deposited into the H-1B and L Fraud Prevention and 
                Detection Account shall remain available to the 
                Secretary of Labor until expended for enforcement 
                programs and activities described in section 212(n).
                    ``(D) Consultation.--The Secretary of State, the 
                Secretary of Homeland Security, and the Secretary of 
                Labor shall consult one another with respect to the use 
                of the funds in the H-1B and L Fraud Prevention and 
                Detection Account.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and the fees imposed 
under such amendments shall apply to petitions under section 214(c) of 
the Immigration and Nationality Act, and applications for nonimmigrant 
visas under section 222 of such Act, filed on or after the date that is 
90 days after the date of the enactment of this Act.

SEC. 5. ENSURING INTEGRITY OF VISAS FOR INTRACOMPANY TRANSFEREES.

    (a) Nonimmigrant L-1 Visa Category.--
            (1) In general.--Section 214(c)(2) of the Immigration and 
        Nationality Act (8 U.S.C. 1184(c)(2)) is amended by adding at 
        the end the following:
    ``(F) An alien who will serve in a capacity involving specialized 
knowledge with respect to an employer for purposes of section 
101(a)(15)(L) and will be stationed primarily at the worksite of an 
employer other than the petitioning employer or its affiliate, 
subsidiary, or parent shall not be eligible for classification under 
section 101(a)(15)(L) if--
            ``(i) the alien will be controlled and supervised 
        principally by such unaffiliated employer; or
            ``(ii) the placement of the alien at the worksite of the 
        unaffiliated employer is part of an arrangement merely to 
        provide labor for the unaffiliated employer rather than in 
        connection with the provision of a product or service for which 
        specialized knowledge specific to the petitioning employer is 
        necessary.''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to petitions filed on or after the effective date 
        of this section, whether for initial, extended, or amended 
        classification.
    (b) Requirement for Prior Continuous Employment for Certain 
Intracompany Transferees.--
            (1) In general.--Section 214(c)(2)(A) of the Immigration 
        and Nationality Act (8 U.S.C. 1184(c)(2)(A)) is amended by 
        striking the last sentence (relating to reduction of the 1-year 
        period of continuous employment abroad to 6 months).
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply only to petitions for initial classification filed 
        on or after the effective date of this section.
    (c) Maintenance of Statistics.--
            (1) In general.--The Secretary of Homeland Security shall 
        maintain statistics regarding petitions filed, approved, 
        extended, and amended with respect to nonimmigrants described 
        in section 101(a)(15)(L) of the Immigration and Nationality Act 
        (8 U.S.C. 1101(a)(15)(L)), including the number of such 
        nonimmigrants who are classified on the basis of specialized 
        knowledge and the number of nonimmigrants who are classified on 
        the basis of specialized knowledge in order to work primarily 
        at offsite locations.
            (2) Applicability.--Paragraph (1) shall apply to petitions 
        filed on or after the effective date of this section.
    (d) Effective Date.--This section and the amendments made by this 
section shall take effect 180 days after the date of the enactment of 
this Act.
answer:
American Workforce Improvement and Jobs Protection Act - Amends the Immigration and Nationality Act to exempt up to 20,000 aliens holding a master's or higher degree from the numerical limitation on H-1B (temporary employment in a specialty occupation) nonimmigrants in any fiscal year.

Makes permanent: (1) the attestation requirement concerning nondisplacement of U.S. workers applicable to H-1B-dependent employers and willful violators; (2) the filing fee applicable to H-1B petitioners; and (3) the Secretary of Labor's authority under the American Competitiveness and Workforce Improvement Act to investigate an employer's alleged failure to meet specified labor attestation conditions (by repealing a sunset provision in that Act).

Requires the Secretary of Homeland Security to impose a fraud prevention and detection fee on H-1B or L (intracompany business personnel) petitioners for use in combating fraud and carrying out labor attestation enforcement activities. Establishes an H-1B and L Fraud Prevention and Detection Account for the deposit of such fees.

Renders ineligible for L visa status those aliens who will serve in a capacity involving specialized knowledge at the worksite of an employer other than the petitioning employer or its affiliate if: (1) the alien will be controlled principally by the unaffiliated employer; or (2) the placement with the unaffiliated employer is part of an arrangement merely to provide labor rather than to use the alien's specialized knowledge.

Eliminates the current reduction in the continuous employment requirement for aliens seeking L visa status pursuant to an employer's blanket petition.

Requires the Secretary of Homeland Security to maintain statistics regarding L visa petitions.


question:
SECTION 1. SIMPLIFIED TAX.

    (a) In General.--Subtitle A of the Internal Revenue Code of 1986 is 
amended to read as follows:

                       ``Subtitle A--Income Taxes

``Chapter 1. Computation of taxable income.
``Chapter 2. Determination of tax liability.
``Chapter 3. Exempt organizations.
``Chapter 4. Withholding.
               ``CHAPTER 1--COMPUTATION OF TAXABLE INCOME

``Sec. 101. Nonbusiness taxable income defined.
``Sec. 102. Business receipts defined.
``Sec. 103. Cost of business inputs defined.
``Sec. 104. Cost of capital equipment, structures, and land defined.
``Sec. 105. Business taxable income defined.

``SEC. 101. NONBUSINESS TAXABLE INCOME DEFINED.

    ``(a) In General.--For purposes of this title, the term 
`nonbusiness taxable income' means--
            ``(1) all compensation, and
            ``(2) any income other than compensation from whatever 
        source derived.
    ``(b) Compensation.--Compensation means all cash amounts paid by an 
employer or received by an employee, including wages, salaries, 
pensions, bonuses, prizes, and awards.
    ``(c) Certain Items Included.--Compensation includes--
            ``(1) the cash equivalent of any financial instrument 
        conveyed to an employee, measured as market value at the time 
        of conveyance; and
            ``(2) workman's compensation and other payments for 
        injuries or other compensation for damages.
    ``(d) Certain Items Excluded.--
            ``(1) Compensation.--Compensation excludes--
                    ``(A) reimbursements to a taxpayer by an employer 
                for business expenses paid by the taxpayer in 
                connection with performance of services as an employee;
                    ``(B) goods and services provided to employees by 
                employers, including but not limited to medical 
                benefits, insurance, meals, housing, recreational 
                facilities, and other fringe benefits; and
                    ``(C) wages, salaries, and other payments for 
                services performed outside the United States.
            ``(2) Other income.--No gain from the sale or exchange of 
        the principal residence of a taxpayer shall be included in 
        income described in subsection (a)(2).

``SEC. 102. BUSINESS RECEIPTS DEFINED.

    ``Business receipts are the receipts of a business from the sale or 
exchange of products or services produced in or passing through the 
United States. Business receipts include--
            ``(1) gross revenue, excluding sales and excise taxes, from 
        the sale or exchange of goods and services;
            ``(2) fees, commissions, and similar receipts, if not 
        reported as compensation;
            ``(3) gross rents;
            ``(4) royalties;
            ``(5) gross receipts from the sale of plant, equipment, and 
        land;
            ``(6) the market value of goods, services, plant, 
        equipment, or land provided to its owners or employees;
            ``(7) the market value of goods, services, and equipment 
        delivered from the United States to points outside the United 
        States, if not included in sales; and
            ``(8) the market value of goods and services provided to 
        depositors, insurance policyholders, and others with a 
        financial claim upon the business, if not included in sales.

``SEC. 103. COST OF BUSINESS INPUTS DEFINED.

    ``(a) In General.--The cost of business inputs is the cost of 
purchases of goods, services, and materials required for business 
purposes.
    ``(b) Certain Items Included.--The cost of business inputs 
includes--
            ``(1) the actual amount paid for goods, services, and 
        materials, whether or not resold during the year;
            ``(2) the market value of business inputs brought into the 
        United States; and
            ``(3) the actual cost, if reasonable, of travel and 
        entertainment expenses for business purposes.
    ``(c) Certain Items Excluded.--The cost of business inputs excludes 
purchases of goods and services provided to employees or owners, unless 
these are included in business receipts.

``SEC. 104. COST OF CAPITAL EQUIPMENT, STRUCTURES, AND LAND DEFINED.

    ``The cost of capital equipment, structures, and land includes any 
purchases of these items for business purposes. In the case of 
equipment brought into the United States, the cost is the market value 
at time of entry into the United States.

``SEC. 105. BUSINESS TAXABLE INCOME DEFINED.

    ``Business taxable income is business receipts less the cost of 
business inputs, less compensation paid to employees, and less the cost 
of capital equipment, structures, and land.

              ``CHAPTER 2--DETERMINATION OF TAX LIABILITY

``Sec. 201. Personal allowance.
``Sec. 202. Nonbusiness tax.
``Sec. 203. Business tax.

``SEC. 201. PERSONAL ALLOWANCE.

    ``(a) In General.--The personal allowance of a taxpayer for any 
taxable year is an amount equal to the sum of the allowance amounts for 
the taxpayer, the spouse of the taxpayer if filing jointly, and each 
dependent of the taxpayer.
    ``(b) Allowance Amount.--The allowance amount for any individual is 
$4,000. Each year the allowance amount for taxable years beginning in 
such year shall be the amount in effect for the preceding year, 
increased by the proportional increase during the preceding year in the 
Consumer Price Index.
    ``(c) Special Rules.--For purposes of this chapter--
            ``(1) a taxpayer is considered married if he was married at 
        the end of the year or if the taxpayer's spouse died during the 
        year,
            ``(2) a taxpayer is a head of a household if the taxpayer 
        is not married at the end of the year, and maintains as the 
        taxpayer's home a household which is the principal home of a 
        dependent of the taxpayer, and
            ``(3) a dependent is a son, stepson, daughter, 
        stepdaughter, mother, or father of the taxpayer, for whom the 
        taxpayer provides more than half support for a taxable year.

``SEC. 202. NONBUSINESS TAX.

    ``(a) In General.--There is hereby imposed a tax on the nonbusiness 
taxable income of every person for each taxable year (reduced by the 
amount of the personal allowance under section 201) a tax equal to--
            ``(1) 15 percent of so much of such income as does not 
        exceed the limit, plus
            ``(2) 25 percent of so much of such income as exceeds the 
        limit.
    ``(b) Limit.--For purposes of subsection (a)--
            ``(1) the limit for married taxpayers filing jointly, heads 
        of household, and surviving spouses is $100,000, and
            ``(2) the limit for any other taxpayer is $50,000.

``SEC. 203. BUSINESS TAX.

    ``(a) Business Defined.--Each sole proprietorship, partnership, and 
corporation constitutes a business. Any organization or individual not 
specifically exempt under chapter 3, with business receipts, is a 
business.
    ``(b) Computation of Tax.--Each business will pay a tax of 19 
percent of its business taxable income, or zero if business taxable 
income is negative.
    ``(c) Filing Units.--A business may file any number of business tax 
returns for its various subsidiaries or other units, provided that all 
business receipts are reported in the aggregate, and provided that each 
expenditure for business inputs is reported on no more than one return.
    ``(d) Carryforward of Losses.--When business taxable income is 
negative, the negative amount may be used to offset positive taxes in 
future years. The amount carried forward from one year to the next is 
augmented according to an interest rate equal to the average daily 
yield on 3-month Treasury Bills during the first year. There is no 
limit to the amount or the duration of the carryforward.

                   ``CHAPTER 3--EXEMPT ORGANIZATIONS

                              ``Sec. 301. Exempt organizations.

``SEC. 301. EXEMPT ORGANIZATIONS.

    ``Organizations exempt from the business tax are--
            ``(1) State and local governments, and their subsidiary 
        units; and
            ``(2) educational, religious, charitable, philanthropic, 
        cultural, and community service organizations that do not 
        return income to individual or corporate owners.

                        ``CHAPTER 4--WITHHOLDING

                              ``Sec. 401. Withholding.

``SEC. 401. WITHHOLDING.

    ``Each employer, including exempt organizations, will withhold from 
the wages, salaries, and pensions of its employees, and remit to the 
Internal Revenue Service, an amount computed in the manner prescribed 
in tables published by the Secretary. Every employee will receive a 
credit against tax for the amount withheld.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1993.
answer:

Amends the Internal Revenue Code to provide for a simplified income tax.  Allows a personal allowance of $4,000 for the taxpayer, spouse (if filing jointly), and each dependent.  Adjusts such amount for inflation each year. 
Imposes a nonbusiness tax on each person (reduced by the amount of the personal allowance) of 15 percent of income that does not exceed the limit, plus 25 percent of income that exceeds the limit.  Specifies that limit as:  (1) $100,000 for married taxpayers filing jointly, heads of household, and surviving spouses; and (2) $50,000 for any other taxpayer. 
Imposes a tax on each business of 19 percent of taxable income, or zero if such income is negative.  Allows the carryforward of losses. 
Specifies tax-exempt organizations as:  (1) State and local governments; and (2) educational, religious, charitable, philanthropic, cultural, and community service organizations that do not return income to individual or corporate owners. 
Provides for tax withholding.