II 

112TH CONGRESS 

2D SESSION S. 2107 

To amend the extension of the temporary employee payroll tax holiday to 

give individuals the choice of whether to participate. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2012 

Mr. LEE (for himself and Mr. DEMINT) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the extension of the temporary employee payroll 

tax holiday to give individuals the choice of whether 

to participate. 

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 Preser5 vation through Individual Choice Enhancement Act’’. 

6 SEC. 2. ELECTION TO TAKE EMPLOYEE PAYROLL TAX CUT. 

7 (a) IN GENERAL.—Section 601 of the Tax Relief, 

8 Unemployment Insurance Reauthorization, and Job Cre9 ation Act of 2010 is amended by redesignating subsections 

10 (b) through (g) as subsections (c) through (i), respectively, 

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1 and by inserting after subsection (a) the following new 

2 subsection: 

3 ‘‘(b) ELECTION TO TAKE EMPLOYEE PAYROLL TAX

4 CUT.— 

5 ‘‘(1) IN GENERAL.—Subsection (a) shall apply 

6 with respect to remuneration received by any indi7 vidual for services rendered in a calendar year (or 

8 taxable year beginning in the calendar year) in the 

9 payroll tax holiday period only if a tax holiday elec10 tion under paragraph (2) is in effect with respect to 

11 such calendar year. 

12 ‘‘(2) TAX HOLIDAY ELECTION.—For purposes 

13 of this subsection— 

14 ‘‘(A) IN GENERAL.—The term ‘tax holiday 

15 election’ means, with respect to the individual, 

16 an election to have subsection (a) apply to a 

17 calendar year (or taxable year beginning in 

18 such calendar year) in the payroll tax holiday 

19 period beginning in or after 2012. Any such 

20 election shall remain in effect until such elec21 tion is revoked. 

22 ‘‘(B) WHEN MADE.—An election with re23 spect to a calendar year (and a taxable year be24 ginning in the taxable year) may be made bemstockstill on DSK4VPTVN1PROD with BILLS

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1 fore July 1 of the calendar year for which such 

2 remuneration is received. 

3 ‘‘(C) REVOCATION OF ELECTION.—Subject 

4 to such conditions as the Secretary deems nec5 essary, an individual may revoke an election to 

6 have subsection (a) apply with respect to a cal7 endar year (and taxable year beginning in the 

8 calendar year) if such revocation is made before 

9 July 1 of the calendar year. 

10 ‘‘(D) TIME AND MANNER OF ELECTION

11 AND REVOCATION.—Any election and revocation 

12 under this subsection shall be made at such 

13 time and in such manner as the Secretary may 

14 prescribe. 

15 ‘‘(3) SPECIAL RULES.— 

16 ‘‘(A) 1ST EMPLOYMENT OR SELF-EMPLOY17 MENT AFTER BEGINNING OF YEAR.—In the 

18 case of an individual whose employment or self19 employment first commences after the begin20 ning of the calendar year or taxable year (as 

21 the case may be), the election under paragraph 

22 (2)(A) shall be made before or with the begin23 ning of such employment. 

24 ‘‘(B) MULTIPLE EMPLOYERS.—In the case 

25 that an individual is employed by more than 1 

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1 employer (including self-employment) for a pe2 riod, an election or revocation made under this 

3 subsection made with respect to remuneration 

4 from 1 employer shall apply to all employers. 

5 For purposes of the preceding sentence, the 

6 most recent valid election or revocation for a 

7 period shall be the only election or revocation 

8 (as the case may be) in effect for that period. 

9 ‘‘(4) OVERPAYMENT AND UNDERPAYMENT OF

10 TAX.— 

11 ‘‘(A) CREDIT FOR OVERPAYMENT.—See 

12 sections 6402 and 6413 of such Code for provi13 sions relating to overpayments of employment 

14 taxes. 

15 ‘‘(B) UNDERPAYMENT OF TAXES.—If, by 

16 reason of an election or revocation under this 

17 subsection for a calendar year or taxable year, 

18 an individual has a liability for tax under sec19 tion 1401(a), 3101(a), 3201(a), or 3211(a)(1) 

20 of such Code for the taxable year beginning 

21 with or in the calendar year, for purposes of 

22 subtitle F of such Code, such liability, together 

23 with interest on such liability at the under24 payment rate established under section 6621, 

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1 shall be assessed and collected in the manner 

2 prescribed by the Secretary. 

3 ‘‘(5) REGULATIONS.—The Secretary, in con4 sultation with the Commissioner of Social Security, 

5 shall prescribe such regulations or other guidance as 

6 may be necessary to carry out this subsection. Such 

7 regulations or other guidance shall include proce8 dures providing for the exchange of information be9 tween the Secretary and the Commissioner of Social 

10 Security for purposes of this subsection.’’. 

11 (b) EXTENSION OF RETIREMENT AGE IN CONNEC12 TION WITH ELECTION TO TAKE PAYROLL TAX CUT.— 

13 Section 216(l) of the Social Security Act (42 U.S.C 

14 416(l)) is amended by adding at the end the following new 

15 paragraph: 

16 ‘‘(4)(A) For each calendar year beginning with or 

17 after 2012 for which section 601(a) of the Tax Relief, Un18 employment Insurance Reauthorization, and Job Creation 

19 Act of 2010 applies with respect to the wages received by 

20 an individual for services rendered in such year, the retire21 ment age (as defined in paragraph (1)) of such individual 

22 shall be increased by 1 month. 

23 ‘‘(B) In the case of any taxable year for which such 

24 section 601(a) applies (with respect to remuneration re25 ceived by an individual as self-employment income for 

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1 services rendered in such taxable year), any calendar year 

2 in which such taxable year commences shall be treated as 

3 a calendar year for which such section 601(a) applies as 

4 described in subparagraph (A).’’. 

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