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106TH CONGRESS

2D SESSION H. R. 4865

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

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 Bene5 fits Tax Relief Act of 2000’’.

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:
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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, $25,000,

17 ‘‘(2) $32,000 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.—
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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, 2000.
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1 (2) SUBSECTION (c)(1).—The amendment made

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

3 December 31, 2000.

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 2000.

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

10 There are hereby appropriated to the Hospital Insur11 ance Trust Fund established under section 1817 of the

12 Social Security Act amounts equal to the reduction in rev13 enues to the Treasury by reason of the enactment of this

14 Act. Amounts appropriated by the preceding sentence

15 shall be transferred from the general fund at such times

16 and in such manner as to replicate to the extent possible

17 the transfers which would have occurred to such Trust

18 Fund had this Act not been enacted.

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