A bill to make certain changes in the procedures under which the compensation of Members of Congress is determined, to provide for the payment of per diem for certain living expenses of Members of Congress (in lieu of the tax deduction), to prohibit Members of Congress from receiving honoraria, and for other purposes.

Amends the Federal Salary Act of 1967 to require the President to submit in the next budget transmitted to the Congress: (1) the exact rates of pay for Members of Congress recommended by the Commission on Executive, Legislative, and Judicial Salaries; and (2) th exact rates of pay which the President considers advisable for Members.

Declares that any pay adjustment for Members shall be the lower of: (1) the rates recommended by the Commission; or (2) the rates recommended by the President.

Allows Members to elect to receive lower rates of pay than that which is otherwise payable. Amends the Federal Pay Comparability Act of 1970 to provide that a lower rate of pay election by Senators shall not be used in pay level comparisons for Senate staff. Amends the Legislative Branch Appropriations Act, 1988 to make such provision for House of Representatives staff.

Authorizes per diem for living expenses of Members whose tax home is in the area of Washington, D.C., and for Members whose tax home is in the Member's legislative district. Declares that per diem is not payable to Members whose tax home is 50 or fewer miles from the U.S. Capitol Building. Declares that per diem shall not be treated as income or remuneration for tax purposes.

Amends the Internal Revenue Code to disallow a deduction for living expenses for Members.

Amends the Supplemental Appropriations Act, 1983 to prohibit a Member from accepting honoraria.