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Union Calendar No. 447

106TH CONGRESS

2D SESSION H. R. 4865

[Report No. 106–780]

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

tax increase on Social Security benefits.

IN THE HOUSE OF REPRESENTATIVES

JULY 17, 2000

Mr. ARCHER (for himself and Mr. SHAW) introduced the following bill; which

was referred to the Committee on Ways and Means

JULY 24, 2000

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on July 17, 2000]

A BILL

To amend the Internal Revenue Code of 1986 to repeal

the 1993 income tax increase on Social Security benefits.

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 Benefits

5 Tax Relief Act of 2000’’.
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1 SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL

2 SECURITY BENEFITS.

3 (a) RESTORATION OF PRIOR LAW FORMULA.—Sub4 section (a) of section 86 of the Internal Revenue Code of

5 1986 is amended to read as follows:

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

7 of any taxpayer described in subsection (b) (notwith8 standing section 207 of the Social Security Act) includes

9 social security benefits in an amount equal to the lesser of—

10 ‘‘(1) one-half of the social security benefits re11 ceived during the taxable year, or

12 ‘‘(2) one-half of the excess described in subsection

13 (b)(1).’’

14 (b) REPEAL OF ADJUSTED BASE AMOUNT.—Sub15 section (c) of section 86 of such Code is amended to read

16 as follows:

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

18 term ‘base amount’ means—

19 ‘‘(1) except as otherwise provided in this sub20 section, $25,000,

21 ‘‘(2) $32,000 in the case of a joint return, and

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

23 ‘‘(A) is married as of the close of the taxable

24 year (within the meaning of section 7703) but

25 does not file a joint return for such year, and
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1 ‘‘(B) does not live apart from his spouse at

2 all times during the taxable year.’’

3 (c) CONFORMING AMENDMENTS.—

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

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

6 inserting ‘‘50 percent’’.

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

8 the Social Security Amendments of 1983 (Public Law

9 98–21) is amended—

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

11 ‘‘There’’;

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

13 ‘‘amounts equivalent to’’; and

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

15 follows and inserting a period.

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

17 is amended by striking subparagraph (B).

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

19 is amended by striking subparagraph (B) and by re20 designating subparagraph (C) as subparagraph (B).

21 (D) Paragraph (2) of section 121(e) of such Act

22 is amended in the first sentence by striking ‘‘para23 graph (1)(A)’’ and inserting ‘‘paragraph (1)’’.

24 (d) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Except as otherwise provided

2 in this subsection, the amendments made by this sec3 tion shall apply to taxable years beginning after De4 cember 31, 2000.

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

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

7 December 31, 2000.

8 (3) SUBSECTION (c)(2).—The amendments made

9 by subsection (c)(2) shall apply to tax liabilities for

10 taxable years beginning after December 31, 2000.

11 SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL INSUR12 ANCE TRUST FUND.

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

14 the Hospital Insurance Trust Fund established under sec15 tion 1817 of the Social Security Act amounts equal to the

16 reduction in revenues to the Treasury by reason of the en17 actment of this Act. Amounts appropriated by the preceding

18 sentence shall be transferred from the general fund at such

19 times and in such manner as to replicate to the extent pos20 sible the transfers which would have occurred to such Trust

21 Fund had this Act not been enacted.

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

23 Secretary’s delegate shall annually report to the Committee

24 on Ways and Means of the House of Representatives and
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1 the Committee on Finance of the Senate the amounts and

2 timing of the transfers under this section.
Union Calendar No. 447

106TH CONGRESS

2D SESSION H. R. 4865

[Report No. 106–780]

A BILL

To amend the Internal Revenue Code of 1986 to

repeal the 1993 income tax increase on SocialSecurity benefits.

JULY 24, 2000

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union

and ordered to be printed