I 

111TH CONGRESS 

1ST SESSION H. R. 1863 

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, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2009 

Mr. WEXLER 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 impose 

a tax on the amount of wages in excess of the contribution and benefit base, 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 2009’’. 

6 SEC. 2. TAX IMPOSED ON WAGES IN EXCESS OF CONTRIBU7 TION AND BENEFIT BASE. 

8 (a) TAX ON EMPLOYEES.—Section 3101 of the Inter9 nal Revenue Code of 1986 (relating to rate of tax) is 


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1 amended by adding at the end the following new sub2 section: 

3 ‘‘(d) WAGES RECEIVED IN EXCESS OF CONTRIBU4 TION AND BENEFIT BASE.—In addition to the taxes im5 posed by subsections (a) and (b) and notwithstanding sub6 section (c), there is hereby imposed on the income of every 

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

8 of— 

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

10 received by him with respect to employment (as de11 fined in section 3121(b)) during the calendar year, 

12 over 

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

14 the contribution and benefit base, as determined 

15 under section 230 of the Social Security Act for 

16 such calendar year.’’. 

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

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

19 the end the following new subsection: 

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

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

22 by subsections (a) and (b) and notwithstanding subsection 

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

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

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


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

2 paid by him with respect to employment (as defined 

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

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

5 the contribution and benefit base, as determined 

6 under section 230 of the Social Security Act for 

7 such calendar year.’’. 

8 (c) RAILROAD RETIREMENT.— 

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

10 such Code (relating to rate of tax) is amended by re11 designating subsection (c) as subsection (d) and by 

12 inserting after subsection (b) the following new sub13 section: 

14 ‘‘(c) WAGES RECEIVED IN EXCESS OF CONTRIBU15 TION AND BENEFIT BASE.—In addition to other taxes, 

16 there is hereby imposed on the income of each employee 

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

18 ‘‘(1) the compensation (determined without re19 gard to section 3231(e)(2)) received during any cal20 endar year by such employee for services rendered 

21 by such employee, over 

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

23 exceed the contribution and benefit base, as deter24 mined under section 230 of the Social Security Act 

25 for such calendar year.’’. 


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1 (2) TAX ON EMPLOYEE REPRESENTATIVES.— 

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

3 is amended by redesignating subsection (c) as sub4 section (d) and by inserting after subsection (b) the 

5 following new subsection: 

6 ‘‘(c) WAGES RECEIVED IN EXCESS OF CONTRIBU7 TION AND BENEFIT BASE.—In addition to other taxes, 

8 there is hereby imposed on the income of each employee 

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

10 any) of— 

11 ‘‘(1) the compensation (determined without re12 gard to section 3231(e)(2)) received during any cal13 endar year by such employee representative for serv14 ices rendered by such employee representative, over 

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

16 exceed the contribution and benefit base, as deter17 mined under section 230 of the Social Security Act 

18 for such calendar year.’’. 

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

20 Code (relating to rate of tax) is amended by redesig21 nating subsection (c) as subsection (d) and by in22 serting after subsection (b) the following new sub23 section: 

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

25 BENEFIT BASE.—In addition to other taxes, there is hereVerDate Nov 24 2008 00:07 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1863.IH H1863

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1 by imposed on every employer an excise tax, with respect 

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

3 the excess (if any) of— 

4 ‘‘(1) the compensation (determined without re5 gard to section 3231(e)(2)) paid during any calendar 

6 year by such employer for services rendered to such 

7 employer, over 

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

9 exceed the contribution and benefit base, as deter10 mined under section 230 of the Social Security Act 

11 for such calendar year.’’. 

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

13 1401 of such Code (relating to rate of tax) is amended 

14 by adding at the end the following new subsection: 

15 ‘‘(d) WAGES RECEIVED IN EXCESS OF CONTRIBU16 TION AND BENEFIT BASE.—In addition to the taxes im17 posed by subsections (a) and (b) and notwithstanding sub18 section (c), there shall be imposed for each taxable year, 

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

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

21 ‘‘(1) the self-employment income for such tax22 able year, over 

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

24 as does not exceed the contribution and benefit base, 

25 as determined under section 230 of the Social SecuVerDate Nov 24 2008 00:07 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1863.IH H1863

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1 rity Act, which is effective for the calendar year in 

2 which such taxable year begins.’’. 

3 (e) CONFORMING AMENDMENTS.— 

4 (1) Section 24(d)(2)(A) of such Code is amend5 ed— 

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

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

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

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

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

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

12 after ‘‘section 3111’’. 

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

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

15 thereof)’’ after ‘‘3101’’. 

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

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

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

19 thereof) and 3111 (other than subsection (d) there20 of)’’. 

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

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

23 taxes imposed by subsections (a), (b), and (d) there24 of)’’ after ‘‘section 3101’’. 

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


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

2 3201’’ and inserting ‘‘section 3101 (without re3 gard to subsection (d) thereof) or section 3201 

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

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

6 3101 (a) and (b) and 3201 (a) and (b)’’ after 

7 ‘‘as the case may be’’ the second place it ap8 pears. 

9 (f) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this section 

12 shall apply with respect to remuneration paid after 

13 December 31, 2009. 

14 (2) SELF-EMPLOYMENT INCOME.—The amend15 ment made by subsection (d) shall apply to taxable 

16 years beginning after December 31, 2009. 

17 SEC. 3. SIGNATURES ON TREASURY SECURITIES. 

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

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

20 end the following new section: 

21 ‘‘§ 3131. Signatures on obligations issued or guaran22 teed under this chapter 

23 ‘‘Every obligation issued or guaranteed under the au24 thority of this chapter shall bear a facsimile of the signaVerDate Nov 24 2008 00:07 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1863.IH H1863

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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 the date 

9 which is 3 months after the date of the enactment of this 

10 Act. 

Æ 


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