Tax Relief and Economic Growth Act of 1991

Summary

Tax Relief and Economic Growth Act of 1991 - Title I: 10 Percent Reduction in Individual Income Tax Rates - Amends the Internal Revenue Code to reduce the income tax rates for all categories (from 15%, 28%, and 31% to 13.5%, 25.2%, and 27.9%, respectively). Title II: Indexing of Amount of Depreciation - Provides a depreciation deduction adjustment for tangible property (other than residential rental property and nonresidential real property) placed in service after 1991. Title III: Indexing of Certain Assets for Purposes of Determining Gain or Loss - Requires indexing, based on the gross national product deflator, of the adjusted basis of certain assets (corporate stock and tangible property that is a capital asset of property used in a trade or business) that have been held for more than one year at the time of sale or other transfer, solely for the purpose of determining gain or loss. Title IV: Provisions Related to Retirement Savings - Removes limitations on the deductibility of contributions to individual retirement plans (IRA) by active participants in employer-maintained plans, thereby restoring the IRA deduction. Increases the maximum IRA deduction and provides an inflation adjustment. Provides exemptions from the ten-percent penalty on early withdrawals from individual retirement plans for: (1) first home purchases; (2) higher education expenses; and (3) financially devastating medical expenses. Title V: 4 Percent Cap on Increases in All Domestic Spending Through 1995 - Amends the Congressional Budget Act of 1974 to revise spending limits to allow a four-percent growth rate in domestic spending from FY 1992 to 1995. Removes the discretionary authority over such spending limits and eliminates the use of maximum deficit amounts. Extends through 1995 the prohibition on the Senate from considering any appropriations bill or resolution that exceeds such spending limits. Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to provide enforcement authority for provisions of this Act and to make conforming amendments. Amends the Congressional Budget Act of 1974 to repeal authority for a pay-as-you-go reconciliation directive in the form of a concurrent resolution in the House of Representatives. Eliminates the use of the current services baseline in the President's budget, the congressional budget, and the Congressional Budget Office report to congressional committees.

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Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 11 September 1991

  Open at official source

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