23 nmltiplied by a fraction, the numerator of which
24 is the number of days in the taxable year and
25 the denominator of which is 365.
1 "(f) Other Definitions and Special Rules. â€”
2 For purposes of this section â€”
3 "(1) Wages. â€” The term 'wages' has the same
4 meaning given to such term in section 51.
5 "(2) Controlled groups. â€”
6 "(A) All employers treated as a single em-
7 ployer under section (a) or (b) of section 52
8 shall be treated as a single employer for pur-
9 poses of this section.
10 "(B) The credit (if any) determined under
11 this section with respect to each such employer
12 shall be its proportionate share of the wages
13 and qualified employee health insurance costs
14 giving rise to such credit.
15 "(3) Certain other rules made applica-
16 BLE. â€” Rules similar to the rules of section 51(k)
17 and subsections (c), (d), and (e) of section 52 shall
19 "(4) Coordination with nonrevenue
20 LAWS. â€” ^Any reference in this section to a provision
21 not contained in this title shall be treated for pur-
22 poses of this section as a reference to such provision
23 as in effect on the date of the enactment of this
-O VAn Â¥^
1 (c) Denial op Deduction for Portion of Wages
2 Equal to Indian Employment Credit. â€”
3 (1) Subsection (a) of section 280C of such Code
4 (relating to rule for targeted jobs credit) is amended
5 by striking "51(a)" and inserting "45(a), 51(a),
7 (2) Subsection (e) of section 196 of such Code
8 (relating to deduction for certain unused business
9 credits) is amended by strikihg "and" at the end of
10 paragraph (5), by striking the period at the end of
11 paragraph (6) and inserting ", and", and by adding
12 at the end the following new paragraph:
13 "(7) the Indian employment credit determined
14 under section 45(a).".
15 (d) Denial of Carrybacks to Preenactment
16 Years.â€” Subsection (d) of section 39 of such Code is
17 amended by adding at the end thereof the following new
19 "(4) No carryback of section 45 credit
20 before enactment. â€” No portion of the unused
21 business credit for any taxable year which is attrib-
22 utable to the Indian employment credit determined
23 under section 45 may be carried to a taxable year
24 ending before the date of the enactment of section
1 (e) Clerical Amendment. â€” The table of sections
2 for subpart D of part IV of subchapter A of chapter 1
3 of such Code is amended by adding at the end thereof
4 the following:
"Sec. 45. Indian employment credit.".
5 (f) Effective Date, â€” The amendments made by
6 this section shall apply to wages paid or incurred after
7 December 31, 1993.
8 Subtitle Eâ€” Study
9 SEC. 451. STUDY OF EFFECTIVENESS OF TAX ENTERPRISE
10 ZONE INCENTIVES.
11 (a) In General. â€” The Secretary of the Treasury, in
12 consultation with the appropriate Secretary (as defined in
13 section 1393(7) of the Internal Revenue Code of 1986,
14 as added by this title), shall contract within 3 months of
15 the date of the enactment of this Act, with the National
16 Academy of Sciences (hereafter in this section referred to
17 as the ''Academy") to conduct a study of the relative effec-
18 tiveness of the incentives provided by this title in achieving
19 the purposes of such title in tax enterprise zones.
20 (b) Conduct of Study. â€” If the Academy contracts
21 for the conduct of the study described in subsection (a),
22 the Academy shall develop a study methodology and shall
23 oversee and manage the conduct of such study.
24 (c) Reports. â€” The Academy shall submit to the
25 Committee on Ways and Means of thp TTnnse nt ^^p-
â€¢S 102 IS
1 resentatives and the Committee on Finance of the
2 Senate â€”
3 (1) not later than July 1, 1997, an interim re-
4 port setting forth the findings as a result of such
5 study, and
6 (2) not later than July 1, 2002, a final report
7 setting forth the findings as a result of such study.
8 TITLE Vâ€” WORKFARE
9 SEC. 501. DEVELOPMENT OF A COMPREHENSIVE LEGISLA-
1 TIVE PROPOSAL REQUIRING ADULTS RECEIV-
1 1 ING AFDC TO ENTER THE WORKFORCE.
12 (a) In General. â€” The Secretary of Labor (herein-
13 after referred to as the "Secretary"), in consultation with
14 the Secretary of Health and Human Services shall develop
15 a comprehensive legislative proposal which would require
16 adults receiving aid to families with dependent children
17 under title IV of the Social Security Act (hereinafter re-
18 f erred to as "AFDC") to enter the workforce within two
19 years of receiving such aid.
20 (b) Specific Matters To Be Included.â€” The
21 proposal developed pursuant to subsection (a) shall include
22 plans â€”
23 (1) for education, training, and child care which
24 would permit adults receiving AFDC to gain the
25 skills necessary to become financially independent;
1 (2) to assist adults receiving AFDC in finding
2 employment in the private sector; and
3 (3) providing for placement in meaningful com-
4 munity service jobs for those adults receiving AFDC
5 who cannot find employment in the private sector.
6 (c) Report. â€” No later then one hundred days after
7 January 20, 1993, the Secretary shall submit the proposal
8 developed pursuant to subsection (a) to the Congress.
â€¢S 102 IS
By Mr. MACK (for himself, Mr. Bond, Mr. Burns, Mr. COATS,
Mr. D'Amato, Mr. Gramm, Mr. Graig, Mr. Grassley, Mr.
Helms, Mr. Murkowski, Mr. Nickles, Mr. Smith, Mr.
Thurmond, Mr. Gorton, Mr. Brown, Mr. Wallop, Mr.
Kempthorne, Mr. Bennett, Mr. Lott. Mr. Dole, and Mr.
S. 102. A bill to provide for a line-item veto; capital gains tax re-
duction; enterprise zones; raising the Social Security earnings
limit; and workfare; to the Committee on Finance.
ECONOMIC RECOVERY ACT OF 1993
Mr. MACK. Mr. President, the new President, like those before
him, will be judged in large part by how well he keeps his cam-
paign commitments. That is an appropriate test.
In recent days, there has been some criticism of the new Presi-
dent for backing away from certain campaign promises.
Bill Clinton was elected on the basis of his convictions, commit-
ments, and pledges to the American people, especially when it
comes to the economy. Today, I and m.any other Senate Repub-
licans stand ready to help President Clinton follow through on his
core commitment to spur the economy and revitalize the American
spirit of innovation and competition. There are a number of policies
he advocated during the campaign that Republicans have sup-
ported for years.
During these next 100 days, we urge the President to move for-
ward in these areas of substantial agreement to ensure that the
following five Clinton proposals become law: enacting a line-item
veto; cutting certain taxes on long-term capital gains; creating Fed-
eral enterprise zones; lifting the Social Security earnings test limit
to allow more seniors to work; and implementing workfare to en-
A number of Senate Republicans pledge to stand shoulder to
shoulder with President Clinton to fight for these ideas.
We've taken these five Clinton initiatives from his book "Putting
People First" and have used his details to introduce a legislative
package that must be passed immediately to help get America mov-
The American people supported these Clinton initiatives and the
group of Senate Republicans intends to see them passed.
First, enact the line-item veto. Bill Clinton ran on the promise
of a line-item veto, saying "to eliminate pork-barrel projects and
cut government waste, give the President the line-item veto." He
should fight for it and stick to his promise by rejecting attempts
to water down the issue in Congress.
Our legislative package includes the line-item veto bill intro-
duced in the 102d Congress as S. 196 by Senators McCain and
Coats. It would give President Clinton the authority to rescind
portions of spending bills and, in contrast to present law, require
the Congress to act in order to override the rescission.
Second, cut capital gains taxes. The bill is taken from the Presi-
dent's statement that he would "Help small businesses and entre-
preneurs by offering a 50-percent tax exclusion to those who take
risk by making long-term investments in new businesses." He's
right. Few initiatives would stimulate growth and investment in
the economy like a capital gains tax cut.
Our legislation includes a bill introduced by Senator Bumpers in
the previous Congress that allows investors in small business ven-
tures to receive a 50-percent reduction in capital gains tax on in-
vestments held for 5 years.
Third, create Federal enterprise zones. Perhaps Jack Kemp's
most brilliant idea, enterprise zones, would provide companies with
incentives to locate in areas of high unemployment. President Clin-
ton said that he wants to:
"Create urban enterprise zones in stagnant inner cities, but only
for companies willing to take responsibility by hiring inner city
residents. Business taxes and Federal regulations will be mini-
mized to provide incentives to set up shop. In return, companies
will have to make jobs for local residents a priority."
Our bill is based on legislative developed last year by then-Sen-
ator Lloyd Bentsen, Clinton's Treasury Secretary, which would cre-
ate 50 enterprise zones. In these zones, employers would receive a
15-percent tax credit based on the wages it pays to its employees.
Also, 50 percent of capital gains from investments would be exempt
from tax if held in an enterprise zone for at least 5 years.
Fourth, lift the Social Security earnings test. Clinton said:
"Lift the Social Security earnings test limitation so that older
Americans are able to help rebuild our economy and create a better
future for all."
As senior Americans remain in the work force longer, a law en-
acted in the 1930's penalizes senior workers who also receive Social
Our plan, which is based upon legislation introduced by Senator
Bentsen last year, raises the limit on earnings for recipients from
the current $10,560 in 1993 to $51,000 in 2001.
Fifth, implement workfare. Bill Clinton pledged that welfare re-
form would be a top priority. He said:
"Scrap the current welfare system to make welfare a second
chance, not a way of life. Empower people on welfare with edu-
cation, training, and child care they need for up to two years so
they can break the cycle of dependency. After that, those who are
able will be required to work, either in the private sector or
through community service. Provide placement assistance to help
everyone find a job, and give the people who can't find one a dig-
nified and meaningful community service."
Our bill includes a directive to the new President's Departments
of Labor and Health and Human Services to develop a legislative
package which mirrors Clinton's words, and send it to Congress
with 100 days.
Bill Clinton was elected on the economic promises he made. Our
hand is extended to the new President to enact his five initiatives
for the good of the Nation. We'll stand up and fight for them. We
hope the President will do the same.
PENDING BEFORE THE SENATE RULES COMMITTEE
January 21, 1993
[From the Congressional Record page S523]
To create a legislative line item veto by requiring separate enrollment of
items in appropriations bills.
IN THE SENATE OF THE UNITED STATES
January 21 (legislative day, Jamjary 5), 1993
Mr. HOLLDCOS (for himself. Mr. Heflin, Mr. BiDEN, and Mr. ROBB) intro-
duced the following bill; which was read twice and referred to the Com-
mittee on Rules and Administration
To create a legislative line item veto by requiring separate
enrollment of items in appropriations bills.
â€¢ 1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That (a) the Impoundment Control Act of 1974 is amend-
4 ed by adding at the end thereof the following new title:
5 "TITLE XIâ€” LEGISLATIVE LINE ITEM VETO
6 SEPARATE ENROLLMENT AUTHORITY LEG-
7 ISLATIVE LINE ITEM VETO
8 "Sec. 1101. (a)(1) Notwithstanding any other provi-
9 sion of law, when any general or special appropriation bill
10 or any bill or joint resolution making supplemental, defi-
1 ciency, or continuing appropriations passes both Houses
2 of the Congress in the same form, the Secretary- of the
3 Senate (in the case of a bill or joint resolution originating
4 in the Senate) or the Clerk of the House of Representa-
5 tives (in the case of a bill or joint resolution originating
6 in the House of Representatives) shall cause the enrolling
7 clerk of such House to enroll each item of such bill or
8 joint resolution as a separate bill or joint resolution, as
9 the case may be.
10 "(2) A bill or joint resolution that is required to be
1 1 enrolled pursuant to paragraph ( 1 ) â€”
12 "(A) shall be enrolled â– without substantive revi-
13 sion; r
14 "(B) shall conform in style and form to the ap-
15 plicable pro\'isions of chapter 2 of title 1, United
16 States Code (as such provisions are in effect on the
17 date of the enactment of this title); and
18 "(C) shall bear the designation of the measure
19 of which it was an item prior to such enrollment, to-
20 gether with such other designation as may be nec-
21 essar>' to distinguish such bill or joint resolution
22 from other bills or joint resolutions enrolled pursu-
23 ant to paragraph (1) with respect to the same meas-
â€¢8 Â»2 IS
1 "(b) A bill or joint resolution enrolled pursuant to
2 subsection (a)(1) with respect to an item shall be deemed
3 to be a bill under clauses 2 and 3 of section 7 of article
4 1 of the Constitution of the United States and shall be
5 signed by the presiding officers of both Houses of the Con-
6 gress and presented to the President for approval or dis-
7 approval (and otherwise treated for all purposes) in the
8 manner provided for bills and joint resolutions generally.
9 "(c) For purposes of this cbncurrent resolution, the
10 term 'item' means any numbered section and any unnum-
1 1 bered paragraph of â€”
12 "(1) any general or special appropriation bill;
14 "(2) any bill or joint resolution making supple-
15 mental, deficiency, or continuing appropriations.".
16 (b) The amendment made by subsection (a) shall
17 apply to bills and joint resolutions agreed to by the Con-
18 gress during the two-calendar-year period beginning with
19 the date of the enactment of this Act.
â€¢S M IS
March 5, 1993
[From the Congressional Record pages S250 1-2502
By Mr. ROLLINGS (for himself, Mr. Heflin, Mr. Biden, and
S. 92. A bill to create a legislative line-item veto by requiring
separate enrollment of items in appropriations bills; to the Com-
mittee on Rules and Administration.
LEGISLATIVE LINE-ITEM VETO SEPARATE ENROLLMENT AUTHORITY
Mr. ROLLINGS. Mr. President, I rise today to introduce legisla-
tion which enables the President to control wasteful and unneces-
sary appropriations and thereby reduce the Federal deficit. This
bill, a statutory, separate enrollment line-item veto, is identical to
a measure previously considered by the 99th Congress as well as
legislation reported favorably by a bipartisan vote out of the Senate
Budget Committee on July 25, 1990.
Currently, 43 States have, in one form or another, a line-item
veto allowing the chief executive to limit legislative spending. As
a former Grovemor who inherited a budget deficit in a poor State,
I can testify that a line-item veto is invaluable in imposing fiscal
The fiscal problems of our Nation have been painfully docu-
mented. Our Government currently faces annual deficits well over
$400 billion and a total debt eclipsing $4 trillion. For years now,
we have been toying with freezes, asset sales and sham summits,
but the deficit and debt continue to grow.
The American taxpayer, as well as the Congress, have grown
weary of the smoke and mirrors and are past ready for a serious
deficit reduction package. If ever there was a problem that needed
to be attacked from every possible angle, it is this deficit. Over the
past few months President Clinton has repeatedly stressed his re-
solve to attack the burgeoning deficit monster. In order to hold him
to that commitment, we should send him into battle well armed.
By restoring accountability and responsibility throughout the ap-
propriations process, the line-item veto would force Members of
Congress and the President to stop fixing the blame and to start
fixing the problem.
This legislation provides that each item shall be enrolled as a
separate bill and sent to the President for his approval. Therefore,
each item of an appropriations bill would be subject to veto or ap-
proval, just like any other bill, and the override provisions found
in article I of the Constitution would apply in the case of a veto.
Item is defined as any numbered section and any unnumbered
paragraph of an appropriations bill. The enrolling clerk would
merely break the appropriations bill down into its component parts
and send each separately enrolled provision to the President.
Finally, this legislation also contains a 2-year sunset provision
allowing for a reasonable testing period and requiring an evalua-
tion of the line-item veto's success. I have no question but that it
will be demonstrated to be a modest, but effective, method of re-
straining fiscal profiigacy. I hope that Senators will join me in this
effort, and I ask that the full text of the bill be printed in the
Record at this time.
To create a legislative item veto by requiring separate enroUment of items
in appropriations bills and tax expenditure provisions in revenue bills.
IN THE SENATE OF THE UNITED STATES
March 5 (legislative day, March 3), 1993
Mr. Bradley (for himself and Mr. Robb) introduced the following bill; \duch
was read twice and referred to the (Committee on Rules and Administration
To create a legislative item veto by requiring separate enroll-
ment of items in appropriations bills and tax expenditure
provisions in revenue bills.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. TAX EXPENDITURE AND LEGISLATIVE APPRO-
4 PRIATIONS LINE ITEM VETO ACT OF 1993.
5 The Congressional Budget and Impoundment Control
6 Act of 1974 is amended by adding at the end thereof the
7 following new title:
; -TITLE XIâ€” T.\:v EIvPEXDITURE AND LEGISI^\-
: TR^ APPROPRUTIOXS LINE ITEM \T:T0
3 ACT OF 1993.
4 â€¢'LEGISLATR'E APPROPRUTIOXS .\XD TAX EXPENDITURE
5 LINE ITEM V'ETO SEP.\RATE ENROLLMENT AUTHORITY'
6 "Sec. 1101. (a) Separate En-rollment. â€”
7 "(1) Notwithstanding any other pro\ision of
8 law. when â€”
9 "(A) any general or special appropriation
10 bill or any bill or joint resolution makins? .sup-
1 i plemental. deficiency, or continuing appropna-
12 tions; or
13 "(B) any revenue bill containing a tax ex-
14 penditure pro\'ision.
15 passes both Houses of the Congress in the same
16 form, the Secretary- of the Senate (in the case of a
17 bill or joint resolution originating in the Senate) or
18 the Clerk of the House of Representatives (in the
19 case of a bill or joint resolution originating in the
20 House of Representatives) shall cause the enrolling
2 1 clerk of such House to enroll each item of appropria-
22 tion or tax expenditure provision of such bill or joint
23 resolution as a separate bill or joint resolution, as
24 the case mav be.
â€¢S 528 IS
1 "(2) A bill or joint resolution that is required
2 to be enrolled pursuant to paragraph (1) â€” -
3 "(A) shall be enrolled without substantive
5 "(B) shall conform in style and form to
6 the applicable provisions of chapter 2 of title 1,
7 United States Code (as such provisions are in
8 effect on the date of the enactment of this
9 title); and
10 "(C) shall bear the designation of the
1 1 measure of which it was an item of appropria-
12 tion or tax expenditure provision prior to such
13 enrollment, together with such other designa-
14 . tion as may be necessary to distinguish such
15 bill or joint resolution from other bills or joint
16 resolutions enrolled pursuant to paragraph (1)
17 with respect to the same measure.
18 "(b) Preparation and Presentment. â€” A bill or
19 joint resolution enrolled pursuant to subsection (a)(1) with
20 respect to an item of appropriation or tax expenditure pro-
21 vision shall be deemed to be a bill under clauses 2 and
22 3 of section 7 of article 1 of the Constitution of the United
23 States and shall be signed by the presiding officers of both
24 Houses of the Congress and presented to the President
25 for approval or disapproval (and otherwise treated for all
â€¢S SZ6 IS
1 puqioses) in the manner pro\idecI for bills and joint reso-
2 lutions g:enerally.
3 "'(c) Defi.vitioxs. â€” For purposes of this title â€”
4 "(1) the term 'item of appropriation' means any
5 numbered section and any unnumbered paragraph
7 "(A) any general or special appropriation
8 bill; and
9 "(B) any bill or joint resolution making
10 supplemental, deficiency, or continuing appro-
1 1 priations; and
12 "'(2) the term 'tax expenditure pro\isior' means
â€¢3 a division of a bill that amends current law or is free
14 standing and that is scored by the Joint Committee
15 on Taxation as losing revenue over the 5-year period
16 after the provision takes effect.".
17 SEC. 2. EFFECTIVE PERIOD.
18 The amendment made by section 1 shall apply to bills
19 and joint resolutions agreed to by the Congress during the
20 103d Congress.
â€¢S 626 IS
By Mr. BRADLEY (for himself and Mr. Robb):
S. 526. A bill to create a legislative item veto by requiring sepa-
rate enrollment of items in appropriations bills and tax expenditure
provisions in revenue bills; to the Committee on Rules and Admin-
Mr. BRADLEY. Mr. President, our new President has promised
to set our Nation on a new path to lasting prosperity and security.
President Clinton has laid out a plan for substantial deficit reduc-
tion, Â£ilong with selective investment in education, job training, and
infrastructure to improve our economic prospects. He must have
the tools he needs to keep his promises. To lead. President Clinton
should need nothing more than the will to change.
To make sure that nothing stands in the way of the President's
promises, today I am introducing the Tax Expenditure and Legisla-
tive Appropriations Act of 1993. This legislation will give the Presi-
dent the authority to veto line items in appropriations and tax
bills. I am very pleased that Senator ROBB joins me as an originsd
To change our Nation, I have changed my mind. Many times
since I first ran for the Senate, I have studied the proposals for a
line-item veto, thought through the arguments and each time I
came to the conclusion that it would tilt the balance of power far-
ther toward the President than the delicate balance embodied in
our Constitution. But I have also watched for 12 years as the defi-
cit quintupled, shameless pork-barrel projects persisted in appro-
priations and tax bills, and our Presidents again and again denied
responsibility for the decisions that led to these devastating trends.
Things have to change.
Although it remains true that the line-item veto would give the
President more power than our Founders probably envisioned,
there is also truth in the conclusion of the National Economic Com-
mission in 1989 that "the balance of power on budget issues has
swung too far from the Executive toward the Legislative branch."
There is no tool to precisely calibrate this balance of power, but if
we have to swing a little too far in one direction or another, at this
critical moment, we should lean toward giving the President all the
power he says he needs. We have a right to expect wise leadership
from the President. We have a right to expect that the President
will use this power for the good of all.
Let me also be clear that I agree with the more recent economic