Honest Balanced Budget Act

Honest Balanced Budget Act - Repeals provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) with respect to: (1) emergency powers to eliminate deficits in excess of the maximum deficit amount; (2) budgetary treatment of social security trust funds; and (3) miscellaneous and related provisions.

Prohibits, for FY 1994 and each fiscal year thereafter, the outlays of the operating segment of the United States budget from exceeding receipts. Requires, when such outlays exceed receipts, that the deficit be eliminated through revenue increases or spending reductions.

Authorizes the waiver of such provisions in the case of war, recession, or natural disaster if the President requests such waiver and the Congress approves by a vote of three-fifths of the membership in both Houses. Requires that operating segment deficit spending subject to a waiver be paid for in full in the budget of the following fiscal year.

Requires the budget, excluding trust funds, to be balanced by FY 1998 and each fiscal year thereafter. Requires the President and the Congress: (1) beginning in FY 1995 to develop and implement a plan to so balance the budget; and (2) after balancing the budget to pay down the debt to a reasonable level over a set period of time in order to reduce annual interest costs.

Allows a waiver of such budget plan in the case of war, recession, or natural disaster if the President requests such waiver and the Congress approves by a vote of three-fifths of the membership in both Houses. Requires deficit spending subject to such waiver to be paid for in full in the budget of the following fiscal year. Requires the restoration of the statutory debt level within 24 months after the date of such waiver or suspension.

Prohibits the Senate or the House of Representatives from considering any bill, resolution, amendment, or conference report that would: (1) cause outlays to exceed receipts; (2) change any provision of this Act; or (3) increase the statutory debt limit after December 31, 1998. Allows a waiver or suspension of such prohibitions in the Senate or the House only by an affirmative vote of three-fifths of the Members.

Requires the President to submit a budget for FY 1994 to comply with the requirements of this Act. Requires the Congress to return a budget not in compliance to the President with a letter of reprimand and a request for a new budget.

Declares it to be the policy of the United States that: (1) not later than December 31, 1993, the Congress amend the Internal Revenue Code to establish a special interest and debt retirement account dedicated to the reduction of interest and the public debt, to be activated by the President if necessary; (2) any revenues collected for interest and debt retirement be especially titled so that citizens may be aware of their purpose; (3) any revenues collected for interest and debt retirement be deposited in a separate trust fund account; (4) the trust fund be used only for the reduction of interest and the retirement of the public debt; (5) the Secretary of the Treasury administer such account with the advice of a bipartisan board; and (6) any special dedicated interest and debt retirement tax expire upon the elimination of the public debt to a specified target level.