[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 126 Introduced in Senate (IS)]
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.
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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
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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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