Tax Reduction and Federal Spending Discipline Act of 1979

Tax Reduction and Federal Spending Discipline Act of 1979 - Amends the Internal Revenue Code to reduce individual and estate and trust income tax rates for calendar years 1980 and 1981 and to make a permanent reduction in such rates for taxable years ending after December 31, 1981.

Amends the Congressional Budget and Impoundment Control Act to limit fiscal year 1980 budget outlays to those of fiscal year 1979. Prohibits budget outlays in fiscal years 1981, 1982, and 1983 from exceeding outlays in any preceding year by five percent.

Authorizes the President to reduce budget outlays in fiscal years 1980, 1981, 1982 and 1983 by a maximum of ten percent.