< Back to H.R. 2934 (104th Congress, 1995–1996)

Text of the Taxpayer Savings Act of 1996

This bill was introduced on February 1, 1996, in a previous session of Congress, but was not enacted. The text of the bill below is as of Feb 1, 1996 (Introduced).

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HR 2934 IH

104th CONGRESS

2d Session

H. R. 2934

To eliminate certain Federal programs and subsidies.

IN THE HOUSE OF REPRESENTATIVES

February 1, 1996

Mr. BLUTE introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To eliminate certain Federal programs and subsidies.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Taxpayer Savings Act of 1996’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Market promotion program.

      Sec. 3. Export enhancement program.

      Sec. 4. Animal damage control.

      Sec. 5. Termination of tax subsidies for ethanol.

      Sec. 6. Termination of price support and production adjustment programs for sugar beets and sugarcane.

      Sec. 7. Termination of peanut quota and price support programs.

SEC. 2. MARKET PROMOTION PROGRAM.

    (a) IN GENERAL- Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is repealed.

    (b) Conforming Amendments-

      (1) Section 211 of the Act (7 U.S.C. 5641) is amended by striking subsection (c) .

      (2) Section 402(a)(1) of the Act (7 U.S.C. 5662(a)(1)) is amended by striking ‘203,’.

      (3) Section 1302 of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66; 7 U.S.C. 5623 note) is repealed.

SEC. 3. EXPORT ENHANCEMENT PROGRAM.

    (a) IN GENERAL- Section 301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is repealed.

    (b) Conforming Amendments-

      (1) Section 103(d)(2) of the Act (7 U.S.C. 5603(d)(2)) is amended by striking ‘(as amended) and the program under section 301’.

      (2) The title heading of title III of the Act (7 U.S.C. prec. 5651) is amended to read as follows:

‘TITLE III--RELIEF FROM UNFAIR TRADE PRACTICES’.

      (3) Section 303 of the Act (7 U.S.C. 5653) is amended by striking ‘, such as that established under section 301,’.

      (4) Section 401 of the Act (7 U.S.C. 5661) is amended by striking ‘sections 201, 202, and 301’ each place it appears in subsections (a) and (b) and inserting ‘sections 201 and 202’.

      (5) Section 402(a)(1) of the Act (7 U.S.C. 5662(a)(1)) (as amended by section 301(b)(2)) is further amended by striking ‘sections 201, 202, and 301’ and inserting ‘sections 201 and 202’.

SEC. 4. ANIMAL DAMAGE CONTROL.

    The last proviso of the matter under the heading ‘Animal and Plant Health Inspection Service’ of title I of the Rural Development, Agriculture, and Related Agencies Appropriations Act, 1986 (Public Law 100-202; 101 Stat. 1329-331; 7 U.S.C. 426c) is amended by striking ‘: Provided further, That hereafter,’ and all that follows through ‘Animal Damage Control activities’.

SEC. 5. TERMINATION OF TAX SUBSIDIES FOR ETHANOL.

    (a) REPEAL OF CREDITS--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 40 (relating to alcohol used as fuel).

    (b) CONFORMING TERMINATIONS OF OTHER INCENTIVES FOR ETHANOL FUEL-

      (1) REPEAL OF REDUCED RATE ON ETHANOL FUEL PRODUCED OTHER THAN FROM PETROLEUM OR NATURAL GAS- Subsection (b) of section 4041 of such Code is amended to read as follows:

    ‘(b) Exemption for Off-Highway Business Use-

      ‘(1) IN GENERAL- No tax shall be imposed by subsection (a) or (d)(1) on liquids sold for use or used in an off-highway business use.

      ‘(2) TAX WHERE OTHER USE- If a liquid on which no tax was imposed by reason of paragraph (1) is used otherwise than in an off-highway business use, a tax shall be imposed by paragraph (1)(B), (2)(B), or (3)(A)(ii) of subsection (a) (whichever is appropriate) and by the corresponding provision of subsection (d)(1) (if any).

      ‘(3) OFF-HIGHWAY BUSINESS USE DEFINED- For purposes of this subsection, the term ‘off-highway business use’ has the meaning given to such term by section 6421(e)(2); except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train.’

      (2) REPEAL OF REDUCED RATE ON ETHANOL FUEL PRODUCED FROM NATURAL GAS- Subsection (m) of section 4041 of such Code is amended--

        (A) by striking ‘or ethanol’ each place it appears (including the heading of paragraph (2)), and

        (B) by striking ‘, ethanol, or other alcohol’ in paragraph (2) and inserting ‘or other alcohol (other than ethanol)’.

    (c) Conforming Amendments to Excise Taxes; Fuel Alcohol Taxed in Same Manner as Other Motor Fuels-

      (1) IN GENERAL- Paragraph (1) of section 4083(a) of such Code (defining taxable fuel) is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by adding at the end the following:

        ‘(C) fuel alcohol.’

      (2) FUEL ALCOHOL- Subsection (a) of section 4083 of such Code is amended by adding at the end the following new paragraph:

      ‘(4) FUEL ALCOHOL- The term ‘fuel alcohol’ means any alcohol (including ethanol and methanol)--

        ‘(A) which is produced other than from petroleum, natural gas, or coal (including peat), and

        ‘(B) which is withdrawn from the distillery where produced free of tax under chapter 51 by reason of section 5181 or so much of section 5214(a)(1) as relates to fuel use.’

      (3) RATE OF TAX- Clause (i) of section 4081(a)(2)(A) of such Code is amended by inserting ‘or fuel alcohol’ after ‘gasoline’.

      (4) SPECIAL RULES FOR IMPOSITION OF TAX- Paragraph (1) of section 4081(a) of such Code is amended by adding at the end the following new subparagraph:

        ‘(C) SPECIAL RULES FOR FUEL ALCOHOL- In the case of fuel alcohol--

          ‘(i) the distillery where produced shall be treated as a refinery, and

          ‘(ii) subparagraph (B) shall be applied by including transfers by truck or rail in excess of such minimum quantities as the Secretary shall prescribe.’

      (5) Repeal of reduced rates on alcohol fuels-

        (A) Section 4041 of such Code is amended by striking subsection (k).

        (B) Section 4081 of such Code is amended by striking subsection (c).

        (C) Section 4091 of such Code is amended by striking subsection (c).

      (6) Conforming amendments-

        (A) Paragraph (2) of section 4041(a) of such Code is amended by adding at the end the following: ‘No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081 and the tax thereon was not credited or refunded.’

        (B) Section 6427 of such Code is amended by striking subsection (f).

        (C) Subsection (i) of section 6427 of such Code is amended by striking paragraph (3).

        (D) Paragraph (2) of section 6427(k) of such Code is amended by striking ‘(3)’.

        (E)(i) Paragraph (1) of section 6427(l) of such Code is amended by striking ‘or’ at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

        ‘(B) any fuel alcohol (as defined in section 4083) on which tax has been imposed by section 4081, or’.

        (ii) Paragraph (2) of section 6427(l) of such Code is amended by striking ‘and’ at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

        ‘(B) in the case of fuel alcohol (as so defined), any use which is exempt from the tax imposed by section 4041(a)(2) other than by reason of a prior imposition of tax, and’.

        (iii) The heading of subsection (l) of section 6427 of such Code is amended by inserting ‘, FUEL ALCOHOL,’ after ‘DIESEL FUEL’.

        (F) Sections 9503(b)(1)(E) and 9508(b)(2) of such Code are each amended by striking ‘and diesel fuel’ and inserting ‘diesel fuel, and fuel alcohol’.

        (G) Section 9502 of such Code is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e).

        (H) Subsection (e) of section 9502 of such Code (as redesignated by subparagraph (I)) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).

        (I) Subsection (b) of section 9503 of such Code is amended by striking paragraph (5).

        (J) Paragraph (3) of section 9503(f) of such Code is amended to read as follows:

      ‘(3) PARTIALLY EXEMPT METHANOL OR ETHANOL FUEL- In the case of a rate of tax determined under section 4041(m), the Highway Trust Fund financing rate is the excess (if any) of the rate so determined over--

        ‘(A) 5.55 cents per gallon after September 30, 1993, and before October 1, 1995, and

        ‘(B) 4.3 cents per gallon after September 30, 1995.’

    (d) Technical and clerical amendments-

      (1) AMENDMENT TO GENERAL BUSINESS CREDIT- Subsection (b) of section 38 of such Code is amended by striking paragraph (3) and redesignating paragraphs (4) through (11) as paragraphs (3) through (10), respectively.

      (2) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 40.

    (e) EFFECTIVE DATE- The amendments made by this section shall apply to sales and uses after the expiration of the 90-day period beginning on the date of the enactment of this Act.

    (f) Floor Stock Taxes-

      (1) IMPOSITION OF TAX- In the case of fuel alcohol which is held on the applicable date by any person, there is hereby imposed a floor stocks tax of 18.4 cents per gallon.

      (2) Liability for tax and method of payment-

        (A) LIABILITY FOR TAX- A person holding, on the applicable date, fuel alcohol to which the tax imposed by paragraph (1) applies shall be liable for such tax.

        (B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.

        (C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid on or before the date occurring 6 months after the applicable date.

      (3) DEFINITIONS- For purposes of this subsection--

        (A) APPLICABLE DATE- The term ‘applicable date’ means the first day occurring after the expiration of the 90-day period beginning on the date of the enactment of this Act.

        (B) FUEL ALCOHOL- The term ‘fuel alcohol’ has the meaning given such term by section 4083 of the Internal Revenue Code of 1986, as amended by this section.

        (C) HELD BY A PERSON- Fuel alcohol shall be considered as ‘held by a person’ if title thereto has passed to such person (whether or not delivery to the person has been made).

        (D) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury or his delegate.

      (4) EXCEPTION FOR EXEMPT USES- The tax imposed by paragraph (1) shall not apply to fuel alcohol held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of the Internal Revenue Code of 1986 is allowable for such use.

      (5) EXCEPTION FOR FUEL HELD IN VEHICLE TANK- No tax shall be imposed by paragraph (1) on fuel alcohol held in the tank of a motor vehicle or motorboat.

      (6) Exception for certain amounts of fuel-

        (A) IN GENERAL- No tax shall be imposed by paragraph (1) on fuel alcohol held on the applicable date by any person if the aggregate amount of fuel alcohol held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.

        (B) EXEMPT FUEL- For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5).

        (C) CONTROLLED GROUPS- For purposes of this paragraph--

          (i) Corporations-

            (I) IN GENERAL- All persons treated as a controlled group shall be treated as 1 person.

            (II) CONTROLLED GROUP- The term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection.

          (ii) NONINCORPORATED PERSONS UNDER COMMON CONTROL- Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.

      (7) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081.

SEC. 6. TERMINATION OF PRICE SUPPORT AND PRODUCTION ADJUSTMENT PROGRAMS FOR SUGAR BEETS AND SUGARCANE.

    (a) Termination of Price Support Program-

      (1) PRICE SUPPORT LEVELS FOR DESIGNATED NONBASIC AGRICULTURAL COMMODITIES- Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ‘milk, sugar beets, and sugarcane’ and inserting ‘and milk’.

      (2) SUGAR PRICE SUPPORT- Section 206 of such Act (7 U.S.C. 1446g) is repealed.

      (3) BENEFITS- Section 401(e) of such Act (7 U.S.C. 1421(e)) is amended--

        (A) in paragraph (1), by striking ‘(1)’; and

        (B) by striking paragraph (2).

      (4) PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES- Section 405 of such Act (7 U.S.C. 1425) is amended--

        (A) in subsection (a), by striking ‘(a)’; and

        (B) by striking subsection (b).

      (5) POWERS OF COMMODITY CREDIT CORPORATION- Section 5(a) of the Commodity Credit Corporation Charter Act (7 U.S.C. 714c(a)) is amended by inserting ‘(except for sugar beets and sugarcane)’ after ‘agricultural commodities’.

    (b) TERMINATION OF ACREAGE ALLOTMENTS AND MARKETING QUOTAS-

      (1) TERMINATION- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa-1359jj) is repealed.

      (2) CONFORMING AMENDMENT- Section 344(f)(2) of such Act (7 U.S.C. 1344(f)(2)) is amended by striking ‘sugar cane for sugar, sugar beets for sugar,’.

    (c) CONFORMING AMENDMENT REGARDING PREVENTION OF GOVERNMENT ACCUMULATION OF SUGAR- Section 902 of the Food Security Act of 1985 (7 U.S.C. 1446g note) is amended--

      (1) by striking subsection (a); and

      (2) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

    (d) CONFORMING AMENDMENT REGARDING SECTION 32 ACTIVITIES- The second sentence of the first paragraph of section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), is amended by inserting ‘(other than sugar beets and sugarcane)’ after ‘commodity’ the last place it appears.

    (e) PROHIBITION ON SUBSEQUENT PROVISION OF PRICE SUPPORT-

      (1) PROHIBITION- After the effective date of this Act, the Secretary of Agriculture may not make price support available, whether in the form of loans, payments, purchases, or other operations, for crops of sugar beets or sugarcane by using the funds of the Commodity Credit Corporation or under the authority of any law.

      (2) EXCEPTION- Notwithstanding paragraph (1), the Secretary shall settle any outstanding loans under section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) made before the effective date of this Act.

    (f) EFFECT ON EXISTING LIABILITY- The amendments made by this section shall not affect the liability of any person under any provision of law as in effect before the effective date of this Act.

    (g) EFFECTIVE DATE- This section and the amendments made by this section shall take effect on October 1, 1996.

SEC. 7. TERMINATION OF PEANUT QUOTA AND PRICE SUPPORT PROGRAMS.

    (a) MARKETING QUOTAS- Part VI of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), relating to peanuts, is repealed.

    (b) PRICE SUPPORT LEVELS- The Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended--

      (1) in section 101(b) (7 U.S.C. 1441(b)), by striking ‘and peanuts’;

      (2) in section 408(c) (7 U.S.C. 1428(c)), by striking ‘peanuts,’; and

      (3) by striking sections 108, 108A, and 108B, relating to peanuts (7 U.S.C. 1445c through 1445c-3).

    (c) Prohibition on Subsequent Provision of Price Support-

      (1) PROHIBITION- After the effective date of this Act, the Secretary of Agriculture may not make price support available, whether in the form of loans, purchases, or other operations, to peanut producers by using the funds of the Commodity Credit Corporation or under the authority of any law.

      (2) EXCEPTION- Notwithstanding paragraph (1), the Secretary shall settle any outstanding loans under section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) made before the effective date of this Act.

    (d) CONTINUED LIABILITY OF PRODUCERS- An amendment made by this section shall not affect the liability of any person under any provision of law as in effect before the effective date of this Act.

    (e) EFFECT ON EXISTING LIABILITY- The amendments made by this section shall not affect the liability of any person under any provision of law as in effect before the effective date of this Act.

    (g) EFFECTIVE DATE- This section and the amendments made by this section shall take effect on October 1, 1996.