Brewster
Brooks
Browder
Brown (CA)
Brown (OH)
Bryant
Bunning
Buyer
Byrne
Callahan
Camp
Canady
Cantwell
Castle
Chapman
Clement
dinger
Clybum
Coble
Coleman
CoUins (GA)
Combest
Condit
Cooper
Coppersmith
Costello
Cox
Coyne
Cramer
Crane
Crapo
[Roll No. 329]
AYES— 342
Cunningham
Hansen
Banner
Harman
Darden
Hastert
de la Garza
Hayes
Deal
Hefley
DeFazio
Herger
DeLaiu-o
Hinchey
DeLay
Hoagland
Derrick
Hobson
Deutsch
Hochbrueckner
Diaz-Balart
Hoekstra
Dickey
Hoke
Dicks
Holden
Dingell
Horn
Dooley
Houghton
Doolittle
Hoyer
Doman
Huffington
Dreier
Hughes
Duncan
Hunter
Dunn
Hutchinson
Durbin '
Hutto
Edwards (TX)
Hyde
Ehlers
Inglis
Emerson
Inhofe
English
Inslee
Eshoo
Istook
Everett
Jacobs
Ewing
Johnson (CT)
Farr
Johnson (GA)
Fawell
Johnson (SD)
Fazio
Johnson, E. B.
Fields (LA)
Johnson, Sam
Fingerhut
Johnston
Flake
Kaptur
Foglietta
Kasich
Frank (MA)
Kennedy
Franks (CT)
Kildee
Franks (NJ)
Kim
Frost
King
Furse
Kingston
Gallegly
Kleczka
Gejdenson
Klein
Gekas
Klug
Geren
Knollenberg
Gilchrest
Kolbe
Gillmor
Kreidler
Gilman
Kyi
Gingrich
LaFalce
Glickman
Lambert
Goodlatte
Lancaster
Goodling
Lantos
Gordon
LaRocco
Goss
Laughlin
Grams
Lazio
Grandy
Leach
Green
Lehman
Greenwood
Levin
Gunderson
Levy
Gutierrez
Lewis (CA)
Hall (OH)
Lewis (FL)
Hall(TX)
Lewis (KY)
Hamilton
Lightfoot
Hancock
Linder
774
Lipinski
Pastor
Livingston
Paxon
Lloyd
Payne (VA)
Long
Penny
Lowey
Peterson (FL)
Lucas
Peterson (MN)
Machtley
Petri
Maloney
Pickett
Mann
Pickle
Manton
Pombo
Manzullo
Pomeroy
Margolies-Mezvinsky
Porter
Markey
Portman
Martinez
Poshard
Mazzoli
Price (NO
McCandless
Pryce (OH)
McCloskey
Quinn
McCollum
Ramstad
McCrery
Ravenel
McDade
Regula
McHale
Reynolds
McHugh
Richardson
Mclnnis
Ridge
McKeon
Roberts
McMillan
Roemer
McNulty
Rogers
Meehan
Rohrabacher
Meyers
Ros-Lehtinen
Mica
Rose
Michel
Roth
MiUer (CA)
Roukema
MiUer (FL)
Rowland
Mineta
Royce
Minge
Sangmeister
Moakley
Santonim
Molinari
SarpaUus
Montgomery
Sawyer
Moorhead
Saxton
Morella
Schaefer
Murphy
Schenk
Myers
Schiff
Neal (MA)
Schroeder
Neal (NO
Schumer
Nussle
Sensenbrenner
Olver
Sharp
Ortiz
Shaw
Orton
Shays
Oxley
Shepherd
Packard
Shuster
Pallone
Sisisky
Parker
Skaggs
Abercrombie
NOES-
Dixon
Applegate
Edwards (CA)
Becerra
Engel
Beilenson
Evans
Bevill
Filner
Borski
Gephardt
Brown (FL)
Gibbons
Clay
Gonzalez
Clayton
Hamburg
CoUins (IL)
Hastings
CoUins (MI)
HiUiard
Conyers
Jefferson
Dellums
Kanjorski
Skeen
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Snowe
Solomon
Spence
Spratt
Steams
Stenholm
Stokes
Strickland
Studds
Stump
Stupak
Sundquist
Swett
Talent
Tanner
Tauzin
Taylor (MS)
Taylor (NC)
Tejeda
Thomas (CA)
Thompson
Thornton
Thurman
Torkildsen
Torricelli
Tucker
Upton
Valentine
Visclosky
Volkmer
Vucanovich
Walker
Walsh
Weldon
Whitten
Williams
Wilson
Wise
Wolf
Wyden
Wynn
Young (AK)
Young (FL)
Zimmer
Kennelly
KUnk
Kopetski
Lewis (GA)
Matsui
McDermott
McKinney
Meek
Menendez
Mfume
Mink
MoUohan
Moran
775
Nadler
Rush
Towns
Oberstar
Sabo
Traficant
Owens
Sanders
Unsoeld
Payne (NJ)
Scott
Velazquez
Pelosi
Serrano
Vento
Rahall
Smith (lA)
Waters
Rangel
Stark
Watt
Reed
Swift
Waxman
Rostenkowski
Synar
Woolsey
Roybal-Allard
Torres
NOT VOTING— 23
Yates
Berinan
Fish
Obey
Blackwell
Ford (MI)
QuiUen
Bonior
Ford (TN)
Slattery
Burton
Fowler
Thomas (WY)
Calvert
Gallo
Washington
Car din
Heftier
Wheat
Can-
McCurdy
ZeUff"
Fields (TX)
Murtha
Mrs. KENNELLY, Mr. RUSH, and Mr. DIXON changed their
vote from "aye" to "no."
Mr. OLVER changed his vote from "no" to "aye."
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
PERSONAL EXPLANATION
Mrs. FOWLER. Mr. Speaker, on rollcall No. 329, I was unable
to vote due to family obligations back home. Had I been present,
I would have voted "yes" on final passage on H.R. 4600.
July 15, 1993
[From the Congressional Record page S9121]
MEASURES REFERRED
The following bill was read the first and second times by unani-
mous consent and referred as indicated:
H.R. 4600. An Act to amend the Congressional Budget and Im-
poundment Control Act of 1974 to provide for the expedited consid-
eration of certain proposed rescissions of budget authority; referred
jointly, pursuant to the order of August 4, 1977, to the Committee
on the Budget, and to the Committee on Grovernmental Affairs.
776
PENDING BEFORE THE SENATE FINANCE COMMITTEE
January 21, 1993
[From the Congressional Record pages S540-541]
II
1031) CONGRESS
1st Session
S. 102
To pio\-idc for line item veto; capital gains tax reduction; enterprise zones;
raising the social security earnings limit workfare.
IX THE SENATE OF THE UNITED STATES
January 21 (legislative day, January 5), 1993
;.!:. Mack (for himself, Mr. BOND, Mr. BURNS, Mr. Coats, Mr. D'Amato,
.Mr. Gra:.im, Mr. Craig, Mr. Grassley, Mr. IIklms, Mr. Murkowski.
Mr. XiCKi.ES, Mr. SMITH, Mr. THURMOND, Mr. Gorton, Mr. Brown,
.Mr. \V.\l>LOP, Mr Kempthorne, Mr. BENNETT, Mr. LOTT, Mr. DOLE,
and Ml-. Co\t=;rdell) introduced the following bill; which was read twicr
and referred to the Connnittee on Finance
A BILL
T(* provide for line item veto; capital f^ains tax rediictioii;
eiitoi-prise zones; raising* the social security earning^s limit
workfare.
1 Be it enacted by the Senate and House of Represent a -
2 (ires of the United States of America in Congress assenibla!,
3 TITLE I— LINE-ITEM VETO
4 SEC. 101. ENHANCEMENT OF SPENDING CONTROL BY THE
5 PRESIDENT.
6 The Impoundment Control Act of 1974 is amendr-d
7 l)y adding- at the end thereof the follo\\ine: new title:
777
2
1 "TITLE XI— LEGISLATIVE LINE ITEM VETO
. 2 RESCISSION AUTHORITY
3 'Tart A — Legislative Line Item Veto Rescission
4 Authority
5 "grant of authority and conditions
6 "Sec. 1101. (a) In General. — (1) Notwithstanding
7 part B of title X and subject to part B of this title, the
8 President may rescind all or part of any budget authority,
9 if the President — •
10 "(A) determines that —
11 "(i) such rescission would help balance the
12 Federal budget, reduce the Federal budget defi-
13 cit, or reduce the public debt;
14 "(ii) such rescission will not impair any es-
15 sential Government functions; and
16 "(iii) such rescission will not harm the na-
17 tional interest; and
18 "(B)(i) notifies the Congress of such rescission
19 by a special message not later than 20 calendar days
20 (not including Saturdays, Sundays, or holidays)
21 after the date of enactment of a regular or supple-
22 mental appropriations Act or a joint resolution mak-
23 ing continuing appropriations providing such budget
24 authority; or
•S 102 IS
778
3
1 "(ii) notifies the Congress of such rescission by
2 special message accompanying the submission of the
3 President's budget to Congress and such rescissions
4 have not been proposed previously for that fiscal
5 year.
6 "(2) The President shall submit a separate rescission
7 message for each appropriations bill under paragraph
8 (l)(B)(ii).
9 "(b) Rescission Effectr^ Unless Dis-
10 APPRO^^D. — (1)(A) Any amount of budget authority re-
11 scinded under this title as set forth in a special message
12 by the President shall be deemed canceled unless, during
13 the period described in subparagraph (B), a rescission dis-
14 approval bill making available all of the amount rescinded
15 is enacted into law.
16 "(B) The period referred to in subparagraph (A) is —
17 "(i) a Congressional review period of 20 cal-
18 endar days of session under part B, during which
19 Congi'ess must complete action on the rescission dis-
20 approval bill and present such bill to the President
21 for approval or disapproval;
22 "(ii) after the period provided in clause (i), an
23 additional 10 days (not including Sundays) during
24 which the President may exercise his authority to
25 sign or veto the rescission disapproval bill; and
•S 102 IS
779
4
1 "(iii) if the President vetoes the rescission dis-
2 approval bill during the period described in clause
3 (ii), an additional 5 calendar days of session after
4 the date of the veto.
5 "(2) If a special message is transmitted by the Presi-
6 dent under this section during any Congress and the last
7 session of such Congress adjourns sine die before the expi-
8 ration of the period described in paragi-aph (1)(B) —
9 "(A) the rescission shall not take effect;
10 "(B) the message shall be deemed to have been
11 retransmitted on the first day of the succeeding
12 Congi-ess; and
13 "(C) the review period described in paragraph
14 (1)(B) (with respect to such message) shall nm be-
15 ginning after such first day.
16 "definitions
17 "Sec. 1102. For the purposes of this title, the term
18 'rescission disapproval bill' means a bill or joint resolution
19 which only disapproves a rescission of budget authority,
20 in whole, rescinded in a special message transmitted by
21 the President under section 1101.
22 "Part B — Congressional Consideration op
23 Legislatr^ Line Item Veto Rescissions
24 "presidential specul message
25 "Sec. 1111. When the President rescinds any budget
26 authority as provided in section 1101. the President shall
•S 102 IS
780
5
1 transmit to the House of Representatives and to the Sen-
2 ate a special message specifying —
3 "(1) the amount of budget authority rescinded;
4 "(2) any account, department, or establishment
5 of the Government to which such budget authority
6 is available for obligation, and the specific project or
7 governmental functions involved;
8 "(3) the reasons and justifications for the de-
9 termination to rescind budget authority pursuant to
10 section 1101(a)(1);
11 "(4) to the maximum extent practicable, the es-
12 timated fiscal, economic, and budgetary effect of the
13 rescission; and
14 "(5) all facts, circumstances, and considerations
15 relating to or bearing upon the rescission and the
16 decision to effect the rescission, and to the maxi-
17 mum extent practicable, the estimated effect of the
18 rescission upon the objects, purposes, and programs
19 for which the budget authority is provided.
20 "transmission of messages; publication
21 "Sec. 1112. (a) Delivery to House and Sen-
22 ate. — (1) Each special message transmitted under sec-
23 tions 1101 and 1111 shall be transmitted to the House
24 of Representatives and the Senate on the same, day, and
25 shall be delivered to the Clerk of the House of Representa-
26 tives if the House of Representatives is not in session and
T^.Sio2is'
781
6
1 to the Secretary of the Senate if the Senate is not in ses-
2 sion.
3 "(2) Each special message transmitted pursuant to
4 paragraph (1) shall be referred to the appropriate commit-
5 tees of the House of Representatives and the Senate and
6 shall be printed as a document of each House.
7 "(b) Printing in Federal Register. — ^A special
8 message transmitted under sections 1101 and 1111 shall
9 be printed in the first issue of the Federal Register pub-
10 lished after such transmittal.
11 "procedure in senate
12 "Sec. 1113. (a) Referral. — (1) Any rescission dis-
13 approval bill introduced with respect to a special message
14 shall be referred to the appropriate committees of the
15 House of Representatives or the Senate, as the case may
16 be.
17 "(2) Any rescission disapproval bill received in the
18 Senate from the House of Representatives shall be consid-
19 ered in the Senate pursuant to this section.
20 "(b) Floor Consideration in the Senate. —
21 "(1) Debate in the Senate on any rescission dis-
22 approval bill and debatable motions and appeals in
23 connection therewith, shall be limited to not more
24 than 10 hours, with the time equally divided be-
25 tween, and controlled by, the majority leader and the
26 minority leader or their designees,
•s 102 is
782
7
1 "(2) (A) Debate in the Senate on any debatable
2 motion or appeal in connection with such a bill shall
3 be limited to 1 hour equally divided between, and
4 controlled by, the mover and the manager of the bill,
5 except that if the manager of the bill is in favor of
6 any such motion or appeal, the time in opposition
7 thereto shall be controlled by the minority leader or
8 the minority leader's designee.
9 "(B) Such leaders, or either of them, may, from
10 the time under their control on the passage of the
11 bill, allot additional time to any Senator during the
12 consideration of any debatable motion or appeal.
13 "(3) A motion to further limit debate shall not
14 be debatable, and a motion to recommit (except a
15 motion to recommit with instructions to report back
16 within a specified number of days, not to exceed 1,
17 not counting any day on which the Senate is not in
18 session) shall not be in order.
19 "(c) Point of Order. — (1) It shall not be in order
20 in the Senate or the House of Representatives to consider
21 any rescission disapproval bill that relates to any matter
22 other than the rescission of budget authority transmitted
23 by the President under section 1101.
*iff f02 IS "-
783
8
1 "(2) It shall not be in order in the Senate or the
2 House of Representatives to consider any amendment to
3 a rescission disapproval bill.
4 "(3) Paragraphs (1) and (2) may be waived or sus-
5 pended in the Senate only by a vote of three-fifths of the
6 members duly chosen and sworn.".
7 TITLE II— CAPITAL GAINS
8 SEC. 201. DEDUCTION FOR CAPITAL GAINS ON CERTAIN
9 SMALL BUSINESS STOCK
10 (a) In General. — Subchapter P of chapter 1 of the
11 Internal Revenue Code of 1986 (relating to capital gains
12 and losses) is amended by adding at the end thereof the
13 following new part:
14 "PART Vn— ENTERPRISE CAPITAL INVESTMENT
15 INCENTIVES
"Sec. 1301. Deduction for gain on certain small business stock.
"Sec. 1302. Definitions and special rules.
16 "SEC. 1301. DEDUCTION FOR GAIN ON CERTAIN SMALL
17 BUSINESS STOCK.
18 "(a) General Rule. — If a taxpayer has a qualified
19 small business net capital gain for any taxable year, there
20 shall be allowed as a deduction from gross income an
21 amount equal to the sum of —
22 "(1) 50 percent of the excess (if any) of —
23 "(A) qualified small business net capital
24 gain, over
-«S 102 IS
784
9
1 "(B) the amount of seed capital gain, plus
2 "(2) the seed capital gain deduction.
3 "(b) QuAiJFiED Small Business Net Capital
4 Gain. — For purposes of this section, the term 'qualified
5 small business net capital gain' means the lesser of —
6 "(1) the net capital gain for the taxable year,
7 or
8 "(2) the net capital gain for the taxable year
9 determined by taking into account only gain or loss
10 from sales or exchanges of qualified small business
1 1 stock with a holding period of more than 5 years at
12 the time of sale or exchange.
13 "(c) Seed Capital Gain Deduction. — For pur-
14 poses of this section —
15 "(1) In general. — The term 'seed capital gain
16 deduction' means an amount equal to the sum of the
17 amounts determined by applying the applicable per-
18 centages to the appropriate categories of seed capital
19 gain under the table contained in paragraph (2).
20 "(2) Computation of amount. — The seed
21 capital gain deduction shall be computed as follows:
The applicable
"In the case of: percentage is:
5-year gain 50
6-year gain 60
7-year gain 70
8-year gain 80
9-year gain 90
10-year gain 100.
^s-ite IS
785
10
1 "(3) Seed capital gain. — For purposes of
2 this subsection, the term 'seed capital gain' means
3 the lesser of —
4 "(A) the excess (if any) of —
5 "(i) the net capital gain for the tax-
6 able year, over
7 "(ii) the qualified small business net
8 capital gain for the taxable year deter-
9 mined without regard to gain or loss de-
10 scribed in subparagraph (B), or
11 "(B) the net capital gain for the taxable
12 year determined by taking into account only
13 gain or loss from sales or exchanges of stock —
14 "(i) which is qualified small business
15 stock in a corporation which is a qualified
16 small business (determined by substituting
17 '$5,000,000' for '$100,000,000' in section
18 1302(b)(1)), and
19 "(ii) with a holding period of more
20 than 5 years at the time of the sale or ex-
21 change.
22 "(4) Categories of gain. — For purposes of
23 this subsection —
24 "(A) 10-year 6AH«J.— The term '10-year
25 gain' means the lesser of —
•S 102 IS
786
11
1 "(i) the seed capital gain, or
2 "(ii) the seed capital gain determined
3 by taking into account under paragraph
4 (3)(B) only gain or loss from qualified
5 small business stock with a holding period
6 of more than 10 years at the time of the
7 sale or exchange.
8 "(B) Other gain.— The terms *5-, 6-,
9 7-, 8-, and 9-year gain' mean, with respect to
10 any category, the lesser of —
11 "(i) the excess (if any) of —
12 "(I) seed capital gain, over
13 "(11) the amount determined
14 under this paragraph for categories
15 ^vith a longer holding period, or
16 "(ii) seed capital gain determined by
17 taking into account under paragraph
18 (3)(B) only gain or loss from qualified
19 small business stock ^vith a holding period
20 of more than 5, 6, 7, 8, or 9 years but not
21 more than 6, 7, 8, 9, or 10 years, respec-
22 tively.
23 "(d) Estates and Trusts. — In the ease of an es-
24 tate or trust, the deduction under subsection (a) shall be
25 computed by excluding the portion (if any) of the gains
•S 102 IS
787
12
1 for the taxable year from sales or exchanges of qualified
2 small business stock which, under section 652 and 662
3 (relating to inclusions of amounts in gross income of bene-
4 ficiaries of trusts), is includible by the income beneficiaries
5 as gains derived from the sale or exchange of capital as-
6 sets.
7 "SEC. 1302. DEFINITIONS AND SPECIAL RULES.
8 "(a) Qualified Small Business Stock. — For pur-
9 poses of this part — '
10 "(1) In general. — The term 'qualified small
11 business stock' means any stock in a corporation
12 which is originally issued after December 31, 1991,
13 if—
14 *'(A) as of the date of issuance, such cor-
15 poration is a qualified small business, and
16 "(B) except as provided in subsections (d)
17 and (e), such stock is acquired by the taxpayer
18 at its original issue (directly or through an un-
19 derwriter) —
20 "(i) in exchange for money or other
21 property (not including stock), or
22 "(ii) as compensation for services
23 (other than services performed as an un-
24 derwriter of such stock).
c •s loa IS
788
13
1 "(2) , 5-YEAR ACTIVE BUSINESS REQUIRE-
2 MENT. — Stock in a corporation shall not be treated
3 as qualified small business stock unless, during the
4 testing period, such corporation meets the active
5 business requirements of subsection (c).
6 "(3) Certain redemptions, exchanges,
7 ETC. disqualified. — For purposes of paragraph
8 (1)(B), and except as provided in subsections (d)
9 and (e), stock shall not be treated as acquired by the
10 taxpayer at its original issue if —
11 "(i) it is issued directly or indirectly in re-
12 demption of, or otherwise in exchange for, stock
13 which is not qualified small business stock, or
14 "(ii) it is issued in an exchange described
15 in section 351 in exchange for property other
16 than qualified small business stock, if imme-
17 diately after the exchange, both the issuer and
18 transferee of the stock are members of the
19 same controlled group of corporations (as de-
20 fined in section 1563).
21 "(b) Qualified Small Business.— For purposes of
22 this part —
23 "(1) In general. — The term 'qualified small
24 business' means any domestic corporation with re-
25 spect to which the sum of —
•S 102 IS
789
14
1 "(A) the aggregate amount of money,
2 other property, and services received by the cor-
3 poration for stock, as a contribution to capital,
4 and as paid-in surplus, plus
5 "(B) the accumulated earnings and profits
6 of the corporation,
7 does not exceed $100,000,000. The determination
8 under the preceding sentence shall be made as of the
9 time of such issuance but shall include amounts re-
10 ceived in such issuance and all prior issuances.
11 "(2) Amount taken into account with re-
12 spect to property and services. — For purposes
13 of paragraph (1) —
14 "(A) Property. — The amount taken into
15 account with respect to any property other than
16 money shall be an amount equal to the adjusted
17 basis of such property for determining gain, re-
18 duced (but not below zero) by any liability to
19 which the property was subject or which was
20 assumed by the corporation. The determination
21 >: under the preceding sentence shall be made as
22 of the time the property was received by the
23 corporation.
24 "(B) Compensation for SER^^CES.— The
25 amount taken into account with respect to stock
V
•S 102 IS
790
15
1 issued for services shall be the value of such
2 services.
3 "(c) Active Business Requirement. — For pur-
4 poses of this part —
5 "(1) In general. — For purposes of subsection
6 (a)(2), the requirements of this subsection are met
7 if, during the testing period —
8 "(A) the corporation is engaged in the ac-
9 tive conduct of a trade or business, and
10 "(B) substantially all of the assets of such
11 corporation are used in the active conduct of a
12 trade or business.
13 "(2) Special rule for certain activi-
14 ties. — For purposes of paragraph (1), if, in connec-
15 tion with any future trade or business, a corporation
16 is engaged in —
17 "(A) start-up activities described in section
18 195(c)(1)(A),
19 "(B) activities resulting in the payment or
20 incurring of expenditures which may be treated
21 as research and experimental expenditures
22 under section 174, or
23 "(C) activities with respect to in-house re-
24 search expenses described in section 41(b)(4),
•S 102 IS
^ 791
16
1 such corporation shall be treated with respect to
2 such activities as engaged in (and assets used in
3 such activities shall be treated as used in) the active
4 conduct of a trade or business. Any determination
5 under this paragraph shall be made without regard
6 to whether a corporation has any gross income from
7 such activities at the time of the determination.
8 "(3) Stock in other corporations. —
9 "(A) Look-thru in case of subsidi-
10 ARIES. — For purposes of this subsection, stock
11 and debt in any subsidiarj' corporation shall be
12 disregarded and the parent corporation shall be
13 deemed to o^vn its ratable share of the subsidi-
14 an^'s assets, and to conduct its ratable share of
15 the subsidian-'s activities.
16 "(B) Portfolio stock. — ^A corporation
17 shall be treated as failing to meet the require-
18 ments of paragraph (1) if, at any time during
19 the testing period, more than 10 percent of the
20 value of its assets (in excess of liabilities) con-
21 sist of stock in other corporations which are not
22 subsidiaries of such corporation.
23 "(C) Subsidiary. — For purposes of this
24 paragraph, a corporation shall be considered a
25 subsidiary if the parent o\\tis at least 50 per-