108th CONGRESS
1st Session
S. 126
To amend the Internal Revenue Code of 1986 to suspend future reductions
of the highest income tax rate if there exists a Federal on-budget deficit.
IN THE SENATE OF THE UNITED STATES
January 9, 2003
Mrs. FEINSTEIN (for herself and Mr. CHAFEE) introduced the following bill;
which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to suspend future reductions
of the highest income tax rate if there exists a Federal on-budget deficit.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SUSPENSION OF CERTAIN INCOME TAX RATE REDUCTIONS IN CASE OF FEDERAL
ON-BUDGET DEFICIT.
Section 1(i) of the Internal Revenue Code of 1986 (relating to rate reductions
after 2000) is amended by redesignating paragraph (3) as paragraph (4) and
by inserting after paragraph (2) the following new paragraph:
`(3) SUSPENSION OF HIGHEST RATE REDUCTIONS IN CASE OF FEDERAL ON-BUDGET
DEFICIT- Notwithstanding the table contained in paragraph (2)--
`(A) INITIAL DETERMINATION- If the Secretary determines on October 1,
2003, that there exists a Federal on-budget deficit for the fiscal year
beginning on such date, the reduction in the highest rate under such table
to 37.6 percent shall be suspended until the beginning of the first calendar
year following the first succeeding October 1 on which it is determined
that such a deficit does not exist.
`(B) SUBSEQUENT DETERMINATION- On October 1 of the year following the
first calendar year described in subparagraph (A), if the Secretary determines
that a Federal on-budget deficit exists for the fiscal year beginning
on such date, the reduction in the highest rate under such table to 35.0
percent shall be suspended until the beginning of the first calendar year
following the first succeeding October 1 on which it is determined that
such a deficit does not exist.
`(C) DATA FOR DETERMINATION- Any determination by the Secretary under
this paragraph with respect to any fiscal year shall be based on the most
recent budgetary data for such fiscal year submitted to Congress under
section 1106 of title 31, United States Code.'.
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