I 

108TH CONGRESS 

1ST SESSION H. R. 378

To amend the Internal Revenue Code of 1986 to repeal the 1993 income 

tax increase on Social Security benefits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2003

Mrs. MUSGRAVE 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 repeal 

the 1993 income tax increase on Social Security benefits, 

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 ‘‘Senior Citizens’ Tax 

5 Relief Act of 2003’’. 

6 SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 

7 SECURITY BENEFITS. 

8 (a) RESTORATION OF PRIOR LAW FORMULA.—Sub9 section (a) of section 86 of the Internal Revenue Code of 

10 1986 is amended to read as follows: 
2

•HR 378 IH 

1 ‘‘(a) IN GENERAL.—Gross income for the taxable 

2 year of any taxpayer described in subsection (b) (notwith3 standing section 207 of the Social Security Act) includes 

4 Social Security benefits in an amount equal to the lesser 

5 of—

6 ‘‘(1) one-half of the Social Security benefits re7 ceived during the taxable year, or 

8 ‘‘(2) one-half of the excess described in sub9 section (b)(1).’’

10 (b) REPEAL OF ADJUSTED BASE AMOUNT.—Sub11 section (c) of section 86 of such Code is amended to read 

12 as follows: 

13 ‘‘(c) BASE AMOUNT.—For purposes of this section, 

14 the term ‘base amount’ means—

15 ‘‘(1) except as otherwise provided in this sub16 section, $34,000, 

17 ‘‘(2) $44,000 in the case of a joint return, and 

18 ‘‘(3) zero in the case of a taxpayer who—

19 ‘‘(A) is married as of the close of the tax20 able year (within the meaning of section 7703) 

21 but does not file a joint return for such year, 

22 and 

23 ‘‘(B) does not live apart from his spouse at 

24 all times during the taxable year.’’

25 (c) CONFORMING AMENDMENTS.—
3

•HR 378 IH 

1 (1) Subparagraph (A) of section 871(a)(3) of 

2 such Code is amended by striking ‘‘85 percent’’ and 

3 inserting ‘‘50 percent’’. 

4 (2)(A) Subparagraph (A) of section 121(e)(1) 

5 of the Social Security Amendments of 1983 (Public 

6 Law 98–21) is amended—

7 (i) by striking ‘‘(A) There’’ and inserting 

8 ‘‘There’’; 

9 (ii) by striking ‘‘(i)’’ immediately following 

10 ‘‘amounts equivalent to’’; and 

11 (iii) by striking ‘‘, less (ii)’’ and all that 

12 follows and inserting a period. 

13 (B) Paragraph (1) of section 121(e) of such Act 

14 is amended by striking subparagraph (B). 

15 (C) Paragraph (3) of section 121(e) of such Act 

16 is amended by striking subparagraph (B) and by re17 designating subparagraph (C) as subparagraph (B). 

18 (D) Paragraph (2) of section 121(e) of such 

19 Act is amended in the first sentence by striking 

20 ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (1)’’. 

21 (d) EFFECTIVE DATE.—

22 (1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, the amendments made by 

24 this section shall apply to taxable years beginning 

25 after December 31, 2002. 
4

•HR 378 IH 

1 (2) SUBSECTION (c)(1).—The amendment made 

2 by subsection (c)(1) shall apply to benefits paid after 

3 December 31, 2002. 

4 (3) SUBSECTION (c)(2).—The amendments 

5 made by subsection (c)(2) shall apply to tax liabil6 ities for taxable years beginning after December 31, 

7 2002. 

8 SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL IN9 SURANCE TRUST FUND. 

10 (a) IN GENERAL.—There are hereby appropriated to 

11 the Hospital Insurance Trust Fund established under sec12 tion 1817 of the Social Security Act amounts equal to the 

13 reduction in revenues to the Treasury by reason of the 

14 enactment of this Act. Amounts appropriated by the pre15 ceding sentence shall be transferred from the general fund 

16 at such times and in such manner as to replicate to the 

17 extent possible the transfers which would have occurred 

18 to such Trust Fund had this Act not been enacted. 

19 (b) REPORTS.—The Secretary of the Treasury or the 

20 Secretary’s delegate shall annually report to the Com21 mittee on Ways and Means of the House of Representa22 tives and the Committee on Finance of the Senate the 

23 amounts and timing of the transfers under this section.

Æ