H.R.5091 - Economic Growth and Jobs Act of 1994103rd Congress (1993-1994)
|Sponsor:||Rep. Obey, David R. [D-WI-7] (Introduced 09/23/1994)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 09/23/1994 Referred to the House Committee on Ways and Means. (All Actions)|
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Text: H.R.5091 — 103rd Congress (1993-1994)All Information (Except Text)
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Introduced in House (09/23/1994)
[Congressional Bills 103th Congress] [From the U.S. Government Printing Office] [H.R. 5091 Introduced in House (IH)] 103d CONGRESS 2d Session H. R. 5091 To provide for tax relief in the case of low economic growth. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES September 23, 1994 Mr. Obey (for himself, Mr. Filner, Mr. Bonior, Mr. Hamilton, Mr. Hinchey, Mrs. Meek, Mr. Rush, Mr. Richardson, Mr. Clay, Mr. Bryant, Mr. Vento, Mr. Serrano, Mr. Andrews of Maine, Mr. Wilson, and Ms. Pelosi) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To provide for tax relief in the case of low economic growth. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Economic Growth and Jobs Act of 1994''. SEC. 2. TAX RELIEF 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'') shall notify the President and the Congress if the Director has determined that for any of the periods described in paragraph (2)-- (A) economic growth as measured by the change in real Gross Domestic Product (GDP) at an annual rate is estimated to be less than 3 percent, and (B) the rate of national unemployment (seasonally adjusted) is estimated to be greater than 6.0 percent. (2) Testing periods.--For purposes of paragraph (1), the periods described in this paragraph are-- (A) the period consisting of the quarter during which the notification is given and the quarter preceding such notification, (B) the period consisting of the preceding 4 quarters, and (C) the period consisting of the 4 quarters following such notification. (b) Presidential Authorization of Temporary Tax Reductions.-- (1) Presidential declaration.--After notification under subsection (a), the President may issue a declaration that temporary income tax reductions 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-- (A) Temporary tax reductions.-- (i) In general.--Effective for taxable years beginning in the calendar year specified in such declaration-- (I) 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 percentage (not to exceed 13\1/3\ percent) specified in such declaration, and (II) the amounts set forth as tax in such tables shall be adjusted to reflect such rate reduction. (ii) Withholding adjustments.--The withholding tables or procedures prescribed by the Secretary of the Treasury or his delegate under section 3402(a) of such Code shall be modified so that, to the maximum extent possible, the full calendar year effect of such reduction is reflected through withholding reductions during the portion of the calendar year after such declaration. (B) Temporary surtax where economic growth requirements subsequently satisfied.-- (i) In general.--Effective for taxable years beginning in the first subsequent calendar year for which the economic growth requirements of paragraph (3) are satisfied-- (I) each rate of tax in the tax tables contained in section 1 of the Internal Revenue Code of 1986 shall be increased by the percentage determined under paragraph (4) for such year, and (II) the amounts set forth as tax in such tables shall be adjusted to reflect such rate increases. (ii) Withholding adjustments.--Effective for such subsequent calendar year, the withholding tables or procedures prescribed by the Secretary of the Treasury or his delegate under section 3402(a) of such Code shall be modified to reflect the increase in tax rates under clause (i). (3) Economic growth requirements.--The economic growth requirements of this paragraph are satisfied for any calendar year if, before the beginning of such calendar year, the President determines (and publishes such determination in the Federal Register) that for such calendar year and the immediately preceding calendar year-- (A) economic growth as measured by the change in the real Gross Domestic Product (GDP) is estimated to be greater than 4 percent, and (B) the rate of national unemployment (seasonally adjusted) is estimated to be less than 6.0 percent. (4) Rate increase percentage.--The percentage determined under this paragraph is the percentage increase in the tax rates contained in section 1 of the Internal Revenue Code of 1986 which the President estimates will result in an aggregate increase in receipts under chapter 1 of such Code equal to the aggregate decrease in receipts under such Code by reason of subparagraph (A) of paragraph (2). Such percentage shall be published in the Federal Register before the beginning of the calendar year for which the economic growth requirements of paragraph (2) are satisfied. (5) Special rules where more than 1 rate reduction.--If there has been more than 1 reduction under paragraph (2)(A) before any increase under paragraph (2)(B)-- (A) paragraph (2)(B) shall not be limited to the first subsequent calendar year for which the economic growth requirements of paragraph (3) are satisfied, but (B) the percentage determined under paragraph (4) for each such subsequent calendar year shall be determined by taking into account only the decrease in receipts under such Code with respect to taxable years beginning in a single calendar year, beginning with the earliest calendar year with respect to which a percentage increase has not been determined under paragraph (4). 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 purpose under the Balanced Budget and Emergency Deficit Control Act of 1985. <all>