II 

112TH CONGRESS 

1ST SESSION S. 1558 

To amend the Internal Revenue Code of 1986 to apply payroll taxes to 

remuneration and earnings from self-employment up to the contribution 

and benefit base and to remuneration in excess of $250,000. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 14, 2011 

Mr. SANDERS (for himself, Mrs. BOXER, Mr. WHITEHOUSE, Mr. AKAKA, Mr. 

LEAHY, Mrs. MCCASKILL, Mr. FRANKEN, Mr. BLUMENTHAL, and Ms. 

MIKULSKI) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to apply 

payroll taxes to remuneration and earnings from selfemployment up to the contribution and benefit base and 

to remuneration in excess of $250,000. 

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 ‘‘Keeping Our Social 

5 Security Promises Act’’. 


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•S 1558 IS

1 SEC. 2. PAYROLL TAX ON REMUNERATION UP TO CON2 TRIBUTION AND BENEFIT BASE AND MORE 

3 THAN $250,000. 

4 (a) IN GENERAL.—Paragraph (1) of section 3121(a) 

5 of the Internal Revenue Code of 1986 is amended by in6 serting after ‘‘such calendar year.’’ the following: ‘‘The 

7 preceding sentence shall apply only to calendar years for 

8 which the contribution and benefit base (as so determined) 

9 is less than $250,000, and, for such calendar years, only 

10 to so much of the remuneration paid to such employee 

11 by such employer with respect to employment as does not 

12 exceed $250,000.’’. 

13 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

14 section 3121 of the Internal Revenue Code of 1986 is 

15 amended by striking ‘‘Act) to’’ and inserting ‘‘Act), or in 

16 excess of $250,000, to’’. 

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

18 this section shall apply to remuneration paid after Decem19 ber 31, 2011. 

20 SEC. 3. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT 

21 UP TO CONTRIBUTION AND BENEFIT BASE 

22 AND MORE THAN $250,000. 

23 (a) IN GENERAL.—Paragraph (1) of section 1402(b) 

24 of the Internal Revenue Code of 1986 is amended to read 

25 as follows: 


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•S 1558 IS

1 ‘‘(1) in the case of the tax imposed by section 

2 1401(a), the excess of— 

3 ‘‘(A) that part of the net earnings from 

4 self-employment which is in excess of— 

5 ‘‘(i) an amount equal to the contribu6 tion and benefit base (as determined under 

7 section 230 of the Social Security Act) 

8 which is effective for the calendar year in 

9 which such taxable year begins, minus 

10 ‘‘(ii) the amount of the wages paid to 

11 such individual during such taxable years; 

12 over 

13 ‘‘(B) that part of the net earnings from 

14 self-employment which is in excess of the sum 

15 of— 

16 ‘‘(i) the excess of— 

17 ‘‘(I) the net earning from self18 employment reduced by the excess (if 

19 any) of subparagraph (A)(i) over sub20 paragraph (A)(ii), over 

21 ‘‘(II) $250,000, reduced by such 

22 contribution and benefit base, plus 

23 ‘‘(ii) the amount of the wages paid to 

24 such individual during such taxable year in 


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•S 1558 IS

1 excess of such contribution and benefit 

2 base and not in excess of $250,000; or’’. 

3 (b) PHASEOUT.—Subsection (b) of section 1402 of 

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following: ‘‘Paragraph (1) shall apply only 

6 to taxable years beginning in calendar years for which the 

7 contribution and benefit base (as determined under section 

8 230 of the Social Security Act) is less than $250,000.’’. 

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

10 this section shall apply to net earnings from self-employ11 ment derived, and remuneration paid, after December 31, 

12 2011. 

Æ 


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