Deficit and Debt Reduction Act of 1989

Summary

Deficit and Debt Reduction Act of 1989 - Title I: Value Added Tax - Amends the Internal Revenue Code to create a new excise tax, a value added tax. Applies the tax to any sale or importation of property or any performance of services in the United States by a person engaging in a business or in a commercial-type transaction. Sets the tax rate at five percent of the amount charged the purchaser by the seller of the taxable property or services. Prescribes situs rules and rules to govern the taxable amount in cases of exchanges, imports, and sales of used goods. Enumerates exemptions, including food, housing, medical care, sales to governmental entities, and transactions of eligible tax-exempt charitable organizations. Permits as a credit against the tax the aggregate amount of tax paid by sellers to the taxpayer of property and services that the taxpayer uses in the business to which the transaction relates. Describes administrative provisions to govern the tax, placing liability on the seller. Permits a de minimis exemption for persons having aggregate annual taxable transactions of $20,000 or less. Establishes special rules for: (1) gifts of business property or services; (2) dispositions of nonbusiness real property; and (3) insurance contracts. Title II: Allocation of Revenues from Value Added Tax - Amends Federal law to establish in the Treasury the Deficit Reduction Trust Fund to receive amounts generated from the value added tax. Earmarks Fund monies exclusively to pay, redeem, or purchase before maturity any obligations of the Federal Government included in the public debt. Excludes the Fund from deficit calculations for purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 23 February 1989

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.