I 

109TH CONGRESS 

1ST SESSION H. R. 3078 

To amend the Internal Revenue Code of 1986 to waive the employee portion 

of Social Security taxes imposed on individuals who have been diagnosed 

as having cancer or a terminal disease. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 27, 2005 

Mr. PAUL (for himself and Mr. MILLER of Florida) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to waive 

the employee portion of Social Security taxes imposed 

on individuals who have been diagnosed as having cancer 

or a terminal disease. 

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 ‘‘Cancer and Terminal 

5 Illness Patient Health Care Act of 2005’’. 
2 

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1 SEC. 2. WAIVER OF EMPLOYEE PORTION OF SOCIAL SECU2 RITY TAXES ON INDIVIDUALS DIAGNOSED AS 

3 HAVING CANCER OR A TERMINAL DISEASE. 

4 (a) EMPLOYEES.—Section 3101 of the Internal Rev5 enue Code of 1986 (relating to tax on employees) is 

6 amended by adding at the end the following new sub7 section: 

8 ‘‘(d) EXCEPTION FOR EMPLOYEES WITH CANCER OR

9 TERMINAL DISEASE.—No tax shall be imposed by this 

10 section on wages paid to an individual for any period for 

11 whom a certification by a physician (as defined in section 

12 1861(r)(1) of the Social Security Act (42 U.S.C. 

13 1395x(r)(1)) is in effect stating that— 

14 ‘‘(1) the individual has a terminal disease, 

15 ‘‘(2) the individual has cancer and whether or 

16 not such cancer is in remission, or 

17 ‘‘(3) the individual is the primary caregiver for 

18 a spouse, parent, or child with a terminal disease or 

19 cancer (whether or not such cancer is in remission). 

20 The preceding sentence shall apply in the case of a certifi21 cation that an individual’s cancer is in remission only dur22 ing the period that the individual certifies to the employer 

23 that the individual is incurring significant costs (not reim24 bursed by insurance or otherwise) by reason of such can25 cer.’’. 
3 

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1 (b) COMPARABLE TREATMENT FOR SELF-EMPLOYED

2 INDIVIDUALS.—Section 1401 of such Code is amended by 

3 adding at the end the following new subsection: 

4 ‘‘(d) REDUCTION IN TAX FOR SELF-EMPLOYED INDI5 VIDUALS WITH CANCER OR TERMINAL DISEASE.— 

6 ‘‘(1) IN GENERAL.—Each of the rates of tax 

7 under subsections (a) and (b) shall be reduced by 50 

8 percent in the case of an individual for whom a cer9 tification by a physician (as defined in section 

10 1861(r)(1) of the Social Security Act (42 U.S.C. 

11 1395x(r)(1)) is in effect throughout the taxable year 

12 stating that— 

13 ‘‘(A) the individual has a terminal disease, 

14 ‘‘(B) the individual has cancer and whether 

15 or not such cancer is in remission, or 

16 ‘‘(C) the individual is the primary care17 giver for a spouse, parent, or child with a ter18 minal disease or cancer (whether or not such 

19 cancer is in remission). 

20 The preceding sentence shall apply in the case of a 

21 certification that an individual’s cancer is in remis22 sion only during the period that the individual is in23 curring significant costs (not reimbursed by insur24 ance or otherwise) by reason of such cancer. 
4 

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1 ‘‘(2) SPECIAL RULE WHERE CERTIFICATE IN

2 EFFECT FOR ONLY PORTION OF YEAR.—If the cer3 tification referred to in paragraph (1) is in effect for 

4 only a portion of the taxable year, paragraph (1) 

5 shall be applied by substituting for ‘50 percent’ the 

6 number of percentage points which bears the same 

7 ratio to 50 as such portion bears to the entire tax8 able year.’’. 

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

10 this section shall apply to periods after the date of the 

11 enactment of this Act. 

12 (d) NO IMPACT ON SOCIAL SECURITY TRUST FUND

13 DEPOSITS OR BENEFITS.—Nothing in the amendments 

14 made by this section shall be construed to affect the 

15 amount of deposits into any trust fund under the Social 

16 Security Act or the amount of benefits payable under such 

17 Act. 

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