I 

109TH CONGRESS 

1ST SESSION H. R. 2472 

To amend the Internal Revenue Code of 1986 to impose a tax on the 

amount of wages in excess of the contribution and benefit base, to 

extend the pay-as-you-go requirement of the Balanced Budget and Emergency Deficit Control Act of 1985, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 18, 2005 

Mr. WEXLER introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Rules, 

and the Budget, 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 amend the Internal Revenue Code of 1986 to impose 

a tax on the amount of wages in excess of the contribution and benefit base, to extend the pay-as-you-go requirement of the Balanced Budget and Emergency Deficit Control Act of 1985, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Social Security Forever 

5 Act of 2005’’. 
2 

•HR 2472 IH 

1 SEC. 2. TAX IMPOSED ON WAGES IN EXCESS OF CONTRIBU2 TION AND BENEFIT BASE. 

3 (a) TAX ON EMPLOYEES.—Section 3101 of the Inter4 nal Revenue Code of 1986 (relating to rate of tax) is 

5 amended by adding at the end the following new sub6 section: 

7 ‘‘(d) WAGES RECEIVED IN EXCESS OF CONTRIBU8 TION AND BENEFIT BASE.—In addition to the taxes im9 posed by subsections (a) and (b) and notwithstanding sub10 section (c), there is hereby imposed on the income of every 

11 individual a tax equal to 3 percent of the excess (if any) 

12 of— 

13 ‘‘(1) the wages (as defined in section 3121(a)) 

14 received by him with respect to employment (as de15 fined in section 3121(b)) during the calendar year, 

16 over 

17 ‘‘(2) so much of such wages as does not exceed 

18 the contribution and benefit base, as determined 

19 under section 230 of the Social Security Act for 

20 such calendar year.’’. 

21 (b) TAX ON EMPLOYERS.—Section 3111 of such 

22 Code (relating to rate of tax) is amended by adding at 

23 the end the following new subsection: 

24 ‘‘(d) WAGES PAID IN EXCESS OF CONTRIBUTION

25 AND BENEFIT BASE.—In addition to the taxes imposed 

26 by subsections (a) and (b) and notwithstanding subsection 
3 

•HR 2472 IH 

1 (c), there is hereby imposed on every employer an excise 

2 tax, with respect to having individuals in his employ, equal 

3 to 3 percent of the excess (if any) of— 

4 ‘‘(1) the wages (as defined in section 3121(a)) 

5 paid by him with respect to employment (as defined 

6 in section 3121(b)) during the calendar year, over 

7 ‘‘(2) so much of such wages as does not exceed 

8 the contribution and benefit base, as determined 

9 under section 230 of the Social Security Act for 

10 such calendar year.’’. 

11 (c) RAILROAD RETIREMENT.— 

12 (1) TAX ON EMPLOYEES.—Section 3201 of 

13 such Code (relating to rate of tax) is amended by re14 designating subsection (c) as subsection (d) and by 

15 inserting after subsection (b) the following new sub16 section: 

17 ‘‘(c) WAGES RECEIVED IN EXCESS OF CONTRIBU18 TION AND BENEFIT BASE.—In addition to other taxes, 

19 there is hereby imposed on the income of each employee 

20 a tax equal to 3 percent of the excess (if any) of— 

21 ‘‘(1) the compensation (determined without re22 gard to section 3231(e)(2)) received during any cal23 endar year by such employee for services rendered 

24 by such employee, over 
4 

•HR 2472 IH 

1 ‘‘(2) so much of such compensation as does not 

2 exceed the contribution and benefit base, as deter3 mined under section 230 of the Social Security Act 

4 for such calendar year.’’. 

5 (2) TAX ON EMPLOYEE REPRESENTATIVES.— 

6 Section 3211 of such Code (relating to rate of tax) 

7 is amended by redesignating subsection (c) as sub8 section (d) and by inserting after subsection (b) the 

9 following new subsection: 

10 ‘‘(c) WAGES RECEIVED IN EXCESS OF CONTRIBU11 TION AND BENEFIT BASE.—In addition to other taxes, 

12 there is hereby imposed on the income of each employee 

13 representative a tax equal to 3 percent of the excess (if 

14 any) of— 

15 ‘‘(1) the compensation (determined without re16 gard to section 3231(e)(2)) received during any cal17 endar year by such employee representative for serv18 ices rendered by such employee representative, over 

19 ‘‘(2) so much of such compensation as does not 

20 exceed the contribution and benefit base, as deter21 mined under section 230 of the Social Security Act 

22 for such calendar year.’’. 

23 (3) TAX ON EMPLOYERS.—Section 3221 of such 

24 Code (relating to rate of tax) is amended by redesig25 nating subsection (c) as subsection (d) and by in-
5 

•HR 2472 IH 

1 serting after subsection (b) the following new sub2 section: 

3 ‘‘(c) WAGES PAID IN EXCESS OF CONTRIBUTION AND

4 BENEFIT BASE.—In addition to other taxes, there is here5 by imposed on every employer an excise tax, with respect 

6 to having individuals in his employ, equal to 3 percent of 

7 the excess (if any) of— 

8 ‘‘(1) the compensation (determined without re9 gard to section 3231(e)(2)) paid during any calendar 

10 year by such employer for services rendered to such 

11 employer, over 

12 ‘‘(2) so much of such compensation as does not 

13 exceed the contribution and benefit base, as deter14 mined under section 230 of the Social Security Act 

15 for such calendar year.’’. 

16 (d) TAX ON SELF-EMPLOYMENT INCOME.—Section 

17 1401 of such Code (relating to rate of tax) is amended 

18 by adding at the end the following new subsection: 

19 ‘‘(d) WAGES RECEIVED IN EXCESS OF CONTRIBU20 TION AND BENEFIT BASE.—In addition to the taxes im21 posed by subsections (a) and (b) and notwithstanding sub22 section (c), there shall be imposed for each taxable year, 

23 on the self-employment income of every individual, a tax 

24 equal to 6 percent of the excess (if any) of— 
6 

•HR 2472 IH 

1 ‘‘(1) the self-employment income for such tax2 able year, over 

3 ‘‘(2) so much of such self-employment income 

4 as does not exceed the contribution and benefit base, 

5 as determined under section 230 of the Social Secu6 rity Act, which is effective for the calendar year in 

7 which such taxable year begins.’’. 

8 (e) CONFORMING AMENDMENTS.— 

9 (1) Section 24(d)(2)(A) of such Code is amend10 ed— 

11 (A) in clause (i) by inserting ‘‘(other than 

12 subsection (d) thereof)’’ after ‘‘3101’’, and 

13 (B) in clause (ii) by inserting ‘‘(other than 

14 subsection (d) thereof)’’ after ‘‘1401’’. 

15 (2) Section 45B(b)(1) of such Code is amended 

16 by inserting ‘‘(other than subsection (d) thereof)’’ 

17 after ‘‘section 3111’’. 

18 (3) Section 406(b)(2)(B) of such Code is 

19 amended by inserting ‘‘(other than subsection (d) 

20 thereof)’’ after ‘‘3101’’. 

21 (4) Section 3121(l)(1)(A) of such Code is 

22 amended by striking ‘‘sections 3101 and 3111’’ and 

23 inserting ‘‘sections 3101 (other than subsection (d) 

24 thereof) and 3111 (other than subsection (d) there25 of)’’. 
7 

•HR 2472 IH 

1 (5) Section 6051(a)(6) of such Code is amended 

2 by inserting ‘‘(stated separately with respect to the 

3 taxes imposed by subsections (a), (b), and (d) there4 of)’’. 

5 (6) Section 6053(b) of such Code is amended— 

6 (A) by striking ‘‘section 3101 or section 

7 3201’’ and inserting ‘‘section 3101 (without re8 gard to subsection (d) thereof) or section 3201 

9 (without regard to subsection (d) thereof)’’, and 

10 (B) by inserting ‘‘with respect to sections 

11 3101(a) and (b) and 3201(a) and (b)’’ after 

12 ‘‘as the case may be’’ the second place it ap13 pears. 

14 (f) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section 

17 shall apply with respect to remuneration paid after 

18 December 31, 2005. 

19 (2) SELF-EMPLOYMENT INCOME.—The amend20 ment made by subsection (d) shall apply to taxable 

21 years beginning after December 31, 2005. 
8 

•HR 2472 IH 

1 SEC. 3. POINT OF ORDER AGAINST DIRECT SPENDING OR 

2 REVENUE LEGISLATION THAT IS NOT FULLY 

3 OFFSET. 

4 (a) POINT OF ORDER.—Section 401 of the Congres5 sional Budget Act of 1974 is amended by adding at the 

6 end the following: 

7 ‘‘(d) PAY-AS-YOU-GO RULE.— 

8 ‘‘(1) POINT OF ORDER.— 

9 ‘‘(A) IN GENERAL.—Notwithstanding any 

10 other provision law, it shall not be in order in 

11 the Senate or the House of Representatives to 

12 consider any direct spending or revenue legisla13 tion that would decrease a unified-budget sur14 plus or cause or increase a unified-budget def15 icit, for any applicable time period. 

16 ‘‘(B) APPLICABLE TIME PERIOD.—For 

17 purposes of subparagraph (A), the term ‘appli18 cable time period’ means any of the following 

19 three periods: 

20 ‘‘(i) The current year and the budget 

21 year. 

22 ‘‘(ii) The current year and the five 

23 subsequent fiscal years. 

24 ‘‘(iii) The five fiscal years following 

25 the period described in clause (ii). 
9 

•HR 2472 IH 

1 ‘‘(C) EXCLUSION.—For purposes of this 

2 paragraph, the terms ‘direct-spending legisla3 tion’ and ‘revenue legislation’ do not include 

4 any provision of legislation that affects the full 

5 funding of, and continuation of, the deposit in6 surance guarantee commitment in effect on the 

7 date of the enactment of the Social Security 

8 Forever Act of 2005. 

9 ‘‘(D) CALCULATIONS.—Calculations pre10 pared pursuant to this paragraph shall employ 

11 the baseline used for the most recently adopted 

12 concurrent resolution on the budget. 

13 ‘‘(E) USE OF ENACTED SAVINGS.—If di14 rect spending or revenue legislation decreases a 

15 unified-budget surplus or causes or increases a 

16 unified-budget deficit when taken individually, 

17 then it must also do so when taken together 

18 with all direct spending and revenue legislation 

19 enacted since the beginning of the calendar year 

20 not accounted for in the baseline under sub21 paragraph (D). 

22 ‘‘(2) WAR.—The current-year and budget-year 

23 costs of legislation shall not be counted for purposes 

24 of paragraph (1) whenever a declaration of war is in 

25 effect. 
10 

•HR 2472 IH 

1 ‘‘(3) RECESSION.—Paragraph (1) shall not 

2 apply to any legislation all of whose provisions expire 

3 within 18 months of enactment if Congress declares 

4 by concurrent resolution or statute, and the presi5 dent independently declares by proclamation, that 

6 the economy is suffering from the current or lin7 gering effects of a recession.’’. 

8 (b) WAIVERS AND APPEALS.—Section 904 of the 

9 Congressional Budget Act of 1974 is amended by adding 

10 ‘‘401(d),’’ after ‘‘313,’’ in subsection (c) and in subsection 

11 (d). 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall take efect the day after their enactment, 

14 and any tax or entitlement legislation enacted before the 

15 effective date of such amendments, including the provi16 sions of section 2, shall not count for purposes of deter17 mining compliance with this section. 

18 SEC. 4. SIGNATURES ON TREASURY SECURITIES. 

19 (a) IN GENERAL.—Subchapter II of chapter 31 of 

20 title 31, United States Code, is amended by adding at the 

21 end the following new section: 

22 ‘‘§ 3131. Signatures on obligations issued or guaran23 teed under this chapter 

24 ‘‘Every obligation issued or guaranteed under the au25 thority of this chapter shall bear a facsimile of the signa-
11 

•HR 2472 IH 

1 tures of the President of the United States and the Sec2 retary of the Treasury.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for chapter 31, United States Code, is amended by adding 

5 after the item relating to section 3130 the following new 

6 item: 

‘‘3131. Signatures on obligations issued or guaranteed under this chapter.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to obligations issued after 3 

9 months after the date of the enactment of this Act. 

Æ