There is one summary for H.R.2060. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (07/19/1995)

TABLE OF CONTENTS:

Title I: Tax Reduction and Simplification; Supermajority

Required for Tax Changes

Subtitle A: Tax Reduction and Simplification

Subtitle B: Supermajority Required for Tax Changes

Title II: Spending Restraint and Budget Process Reform

Subtitle A: Joint Budget Resolution

Subtitle B: Zero Based Budgeting and Decennial

Sunsetting

Subtitle C: Spending Caps on the Growth of Entitlements

for Fiscal Years 1996 Through 2002

Subtitle D: Balanced Budget by Fiscal Year 2002

Freedom and Fairness Restoration Act of 1995 - Title I: Tax Reduction and Simplification; Supermajority Required for Tax Changes - Subtitle A: Tax Reduction and Simplification - Amends the Internal Revenue Code to impose a 20 percent tax (17 percent after December 31, 1997) on the taxable income of every individual.

Redefines "taxable income" to mean the amount by which wages, retirement distributions, and unemployment compensation exceed the standard deduction. Increases the basic standard deduction and includes an additional standard deduction for dependents. Includes in taxable income the taxable income of each dependent child under the age of 14. Provides for inflation adjustments.

(Sec. 102) Replaces the current tax on corporations with a tax on every person engaged in a business activity equal to 20 percent (17 percent after December 31, 1997) of the business taxable income of such person. Makes the person engaged in the business activity liable for the tax.

Imposes a tax of 20 percent (17 percent after December 31, 1997) on the value of excludable compensation provided during the year by an employer for the benefit of employees. Makes the employer liable for the tax.

(Sec. 103) Repeals: (1) numerous provisions relating to pension plans; and (2) provisions imposing a tax on any employer reversion from a qualified plan.

Revises requirements regarding transfers of excess pension assets.

(Sec. 104) Repeals from the Internal Revenue Code: (1) the part relating to alternative minimum tax; (2) the part relating to credits against tax; (3) the subtitle relating to estate and gift taxes; and (4) subject to exception, the chapter relating to normal taxes and surtaxes.

Subtitle B: Supermajority Required for Tax Changes - Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment thereto, or conference report thereon that includes any provision that increases an income tax rate, creates an additional tax rate, reduces the standard deduction, or provides any exclusion, deduction, credit, or other benefit that results in a reduction in Federal revenues.

Title II: Spending Restraint and Budget Process Reform - Subtitle A: Joint Budget Resolution - Amends the Congressional Budget Act of 1974 to reform the budget process by requiring a joint resolution on the budget instead of the concurrent resolution on the budget.

Subtitle B: Zero Based Budgeting and Decennial Sunsetting - Terminates spending authority for unearned entitlements and high-cost discretionary spending programs for FY 1996, and discretionary spending programs (not including high-cost programs) for FY 1997, unless such spending is reauthorized after the date of enactment of this Act.

(Sec. 212) Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment, or conference report that includes any provision appropriating funds unless the appropriation has been previously authorized by law.

(Sec. 213) Requires the reauthorization of discretionary spending authority and unearned entitlements every ten years, beginning in the first decennial census year after 2001.

Subtitle C: Spending Caps on the Growth of Entitlements for Fiscal Years 1996 Through 2002 - Declares that, for FY 1996 through 2002, the total level of entitlement and mandatory spending, excluding social security, shall not exceed the total level for the previous fiscal year increased by the consumer price index and growth in the eligible population. Requires sequestration as necessary to reduce spending. Provides for making uniform reductions with limitations. Lists programs and activities exempt from sequestration and provides exceptions, limitations, and special rules. Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment thereto, or conference report thereon that includes any provision having the effect of modifying the application of this subtitle to any entitlement program subject to or exempt from sequestration under this subtitle.

Subtitle D: Balanced Budget by Fiscal Year 2002 - Amends the Congressional Budget Act to revise the budget enforcement process.

(Sec. 231) Establishes maximum spending amounts for FY 1996 through 2002 and revises sequestration procedures for enforcement.

(Sec. 233) Makes it not in order in the House of Representatives or the Senate, unless waived or suspended in the House or the Senate by a three-fifths vote of the Members, to consider any bill, joint resolution, amendment thereto, or conference report thereon that includes any provision that would result in total spending for a fiscal year exceeding the maximum permissible total spending amount for that fiscal year.