; and (2) the net deficit change that has resulted from all direct spending legislation enacted after the date of enactment of this section that relate to the fiscal year subject to the sequestration, as estimated by the Office of Management and Budget. If the reduction in spending under paragraphs (1) and (2) for a fiscal year is greater than the estimated aggregate amount designated under section 6097 of the Internal Revenue Code of 1986 for that fiscal year, then there shall be no sequestration under this section. (b) Applicability (1) In general Notwithstanding sections 255 and 256, and except as provided by paragraph (2), each account of the United States shall be reduced by a dollar amount calculated by multiplying the level of budgetary resources in that account at that time by the uniform percentage necessary to carry out subsection (a). All obligational authority reduced under this section shall be done in a manner that makes such reductions permanent. (2) Exempt accounts No order issued under this section may— (A) reduce benefits payable to the old-age and survivors insurance program established under title II of the Social Security Act; (B) reduce retired or retainer pay payable to a member or former member of the uniformed services; or (C) reduce payments for net interest (all of major functional category 900). . (b) Reports Section 254 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended— (1) in subsection (a), by adding at the end of the table the following new item: October 1 Department of the Treasury report to Congress estimating amount of income tax designated pursuant to section 6097 of the Internal Revenue Code of 1986. ; (2) in subsection (c)— (A) in paragraph (1), by inserting , and sequestration to reduce the public debt, after sequestration ; (B) by redesignating paragraph (5) as paragraph (6)