I 

117TH CONGRESS 

1ST SESSION H. R. 2304 

To amend title II of the Social Security Act and the Internal Revenue 

Code of 1986 to modify the portion of wages and self-employment income 

subject to payroll taxes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2021 

Mr. CRIST introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend title II of the Social Security Act and the Internal 

Revenue Code of 1986 to modify the portion of wages 

and self-employment income subject to payroll taxes, 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 ‘‘Save Social Security 

5 Act of 2021’’. 


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1 SEC. 2. DETERMINATION OF WAGES AND SELF-EMPLOY2 MENT INCOME ABOVE CONTRIBUTION AND 

3 BENEFIT BASE AFTER 2021. 

4 (a) DETERMINATION OF WAGES ABOVE CONTRIBU5 TION AND BENEFIT BASE AFTER 2021.— 

6 (1) AMENDMENTS TO THE INTERNAL REVENUE

7 CODE.— 

8 (A) IN GENERAL.—Section 3121(a)(1) of 

9 the Internal Revenue Code of 1986 is amended 

10 by inserting after ‘‘such calendar year.’’ the fol11 lowing: ‘‘The preceding sentence shall apply 

12 only to calendar years for which the contribu13 tion and benefit base (as so determined) is less 

14 than $400,000, and, for such calendar years, 

15 only to so much of the remuneration paid to 

16 such employee by such employer with respect to 

17 employment as does not exceed $400,000.’’. 

18 (B) CONFORMING AMENDMENT.—Section 

19 3121(a)(1) of such Code is amended by striking 

20 ‘‘Act) to’’ and inserting ‘‘Act), or in excess of 

21 $400,000, to’’. 

22 (2) AMENDMENT TO THE SOCIAL SECURITY

23 ACT.—Section 209(a)(1)(I) of the Social Security 

24 Act (42 U.S.C. 409(a)(1)(I)) is amended by insert25 ing before the semicolon at the end the following: 

26 ‘‘except that this subparagraph shall apply only to 


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1 calendar years for which the contribution and ben2 efit base (as so determined) is less than $400,000, 

3 and, for such calendar years, only to the extent re4 muneration paid to such employee by such employer 

5 with respect to employment does not exceed 

6 $400,000’’. 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this subsection shall apply with respect to remu9 neration paid in calendar years after 2021. 

10 (b) DETERMINATION OF SELF-EMPLOYMENT IN11 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

12 2021.— 

13 (1) AMENDMENTS TO THE INTERNAL REVENUE

14 CODE.— 

15 (A) IN GENERAL.—Section 1402(b)(1) of 

16 the Internal Revenue Code of 1986 is amended 

17 to read as follows: 

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

19 1401(a)— 

20 ‘‘(A) in the case of a taxpayer with wages 

21 (as determined under section 3121(a) without 

22 regard to paragraph (1) of such section) less 

23 than $400,000 and more than the contribution 

24 and benefit base (as determined under section 

25 230 of the Social Security Act) which is effecVerDate Sep 11 2014 01:43 May 26, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2304.IH H2304

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1 tive for the calendar year in which such taxable 

2 year begins, the lesser of— 

3 ‘‘(i) the excess of $400,000 over the 

4 wages (as so determined) paid to such in5 dividual during such taxable year, or 

6 ‘‘(ii) the net earnings from self-em7 ployment for the taxable year, and 

8 ‘‘(B) in the case of a taxpayer with wages 

9 (as so determined) less than or equal to such 

10 contribution and benefit base and for whom the 

11 sum, for the taxable year, of net earnings from 

12 self-employment and wages (as so determined) 

13 paid to such individual is greater than such 

14 contribution and benefit base, the lesser of— 

15 ‘‘(i) the excess of such sum over such 

16 contribution and benefit base, or 

17 ‘‘(ii) the excess of $400,000 over such 

18 contribution and benefit base.’’. 

19 (B) PHASEOUT.—Section 1402(b) of such 

20 Code is amended by adding at the end the fol21 lowing: ‘‘Paragraph (1) shall apply only to tax22 able years beginning in calendar years for which 

23 the contribution and benefit base (as deter24 mined under section 230 of the Social Security 

25 Act) is less than $400,000.’’. 


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1 (2) AMENDMENTS TO THE SOCIAL SECURITY

2 ACT.— 

3 (A) IN GENERAL.—Section 211(b)(1) of 

4 the Social Security Act (42 U.S.C. 411(b)) is 

5 amended— 

6 (i) in subparagraph (I)— 

7 (I) by inserting ‘‘and before 

8 2022’’ after ‘‘1974’’; and 

9 (II) by striking ‘‘or’’ at the end; 

10 and 

11 (ii) by adding at the end the fol12 lowing: 

13 ‘‘(J) For any taxable year beginning in any 

14 calendar year after 2021, an amount equal to— 

15 ‘‘(i) in the case of an individual with 

16 wages (as determined under section 209(a) 

17 without regard to paragraph (1) of such 

18 section) less than $400,000 and more than 

19 the contribution and benefit base (as deter20 mined under section 230 of the Social Se21 curity Act) which is effective for the cal22 endar year in which such taxable year be23 gins, the lesser of— 

24 ‘‘(I) the excess of $400,000 over 

25 the wages (as so determined) paid to 


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1 such individual during such taxable 

2 year, or 

3 ‘‘(II) the net earnings from self4 employment for the taxable year, and 

5 ‘‘(ii) in the case of a taxpayer with 

6 wages (as so determined) less than or 

7 equal to such contribution and benefit base 

8 and for whom the sum, for the taxable 

9 year, of net earnings from self-employment 

10 and wages (as so determined) paid to such 

11 individual is greater than such contribution 

12 and benefit base, the lesser of— 

13 ‘‘(I) the excess of such sum over 

14 such contribution and benefit base, or 

15 ‘‘(II) the excess of $400,000 over 

16 such contribution and benefit base.’’. 

17 (B) PHASEOUT.—Section 211(b) of the 

18 Social Security Act (42 U.S.C. 411(b)) is 

19 amended by adding at the end the following: 

20 ‘‘Paragraph (1) shall apply only to taxable 

21 years beginning in calendar years for which the 

22 contribution and benefit base (as determined 

23 under section 230) is less than $400,000.’’. 

24 (3) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall apply to net earnings from 


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1 self-employment derived, and remuneration paid, in 

2 calendar years after 2021. 

3 SEC. 3. INCLUSION OF EARNINGS OVER $400,000 IN SOCIAL 

4 SECURITY BENEFIT FORMULA. 

5 (a) INCLUSION OF EARNINGS OVER $400,000 IN DE6 TERMINATION OF PRIMARY INSURANCE AMOUNTS.—Sec7 tion 215(a)(1)(A) of the Social Security Act (42 U.S.C. 

8 415(a)(1)(A)) is amended— 

9 (1) in clause (ii), by striking ‘‘and’’ at the end; 

10 (2) in clause (iii), by inserting ‘‘and’’ at the 

11 end; and 

12 (3) by inserting after clause (iii) the following: 

13 ‘‘(iv) 3 percent of the individual’s excess aver14 age indexed monthly earnings (as defined in sub15 section (b)(5)(A)).’’. 

16 (b) DEFINITION OF EXCESS AVERAGE INDEXED

17 MONTHLY EARNINGS.—Section 215(b) of the Social Secu18 rity Act (42 U.S.C. 415(b)) is amended— 

19 (1) by striking ‘‘wages’’ and ‘‘self-employment 

20 income’’ each place such terms appear and inserting 

21 ‘‘basic wages’’ and ‘‘basic self-employment income’’, 

22 respectively; and 

23 (2) by adding at the end the following: 

24 ‘‘(5)(A) An individual’s excess average indexed 

25 monthly earnings shall be equal to the amount of the indiVerDate Sep 11 2014 01:43 May 26, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2304.IH H2304

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1 vidual’s average indexed monthly earnings that would be 

2 determined under this subsection by substituting ‘excess 

3 wages’ for ‘basic wages’ and ‘excess self-employment in4 come’ for ‘basic self-employment income’ each place such 

5 terms appear in this subsection (except in this paragraph). 

6 ‘‘(B) For purposes of this subsection— 

7 ‘‘(i) the term ‘basic wages’ means that portion 

8 of the wages of an individual paid in a year that 

9 does not exceed the contribution and benefit base for 

10 the year; 

11 ‘‘(ii) the term ‘basic self-employment income’ 

12 means that portion of the self-employment income of 

13 an individual credited to a year that does not exceed 

14 an amount equal to the contribution and benefit 

15 base for the year minus the amount of the wages 

16 paid to the individual in the year; 

17 ‘‘(iii) the term ‘excess wages’ means that por18 tion of the wages of an individual paid in a year 

19 after 2021 in excess of the higher of $400,000 or 

20 the contribution and benefit base for the year; and 

21 ‘‘(iv) the term ‘excess self-employment income’ 

22 means that portion of the self-employment income of 

23 an individual credited to a year after 2021 in excess 

24 of the higher of $400,000 or such contribution and 

25 benefit base.’’. 


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1 (c) CONFORMING AMENDMENT.—Section 215(e)(1) 

2 of the Social Security Act (42 U.S.C. 415(e)(1)) is amend3 ed by inserting ‘‘and before 2022’’ after ‘‘1974’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply with respect to individuals who ini6 tially become eligible (within the meaning of section 

7 215(a)(3)(B) of the Social Security Act) for old-age or dis8 ability insurance benefits under title II of the Social Secu9 rity Act, or who die (before becoming eligible for such ben10 efits), in any calendar year after 2021. 

11 SEC. 4. MODIFICATION OF AMOUNT OF SOCIAL SECURITY 

12 BENEFITS INCLUDED IN GROSS INCOME. 

13 (a) IN GENERAL.—Section 86 of the Internal Rev14 enue Code of 1986 is amended by striking subsections (a), 

15 (b), and (c) and inserting the following: 

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

17 year of any taxpayer described in subsection (b) (notwith18 standing section 207 of the Social Security Act) includes 

19 social security benefits in an amount equal to the lesser 

20 of— 

21 ‘‘(1) 85 percent of the social security benefits 

22 received during the taxable year, or 

23 ‘‘(2) 85 percent of the excess described in sub24 section (b). 


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1 ‘‘(b) TAXPAYERS TO WHOM SUBSECTION (a) AP2 PLIES.—A taxpayer is described in this subsection if— 

3 ‘‘(1) the sum of— 

4 ‘‘(A) the modified adjusted gross income of 

5 the taxpayer for the taxable year, plus 

6 ‘‘(B) 85 percent of the social security bene7 fits received during the taxable year, exceeds 

8 ‘‘(2) $100,000. 

9 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

10 purposes of this section, the term ‘modified adjusted gross 

11 income’ means adjusted gross income— 

12 ‘‘(1) determined without regard to this section 

13 and sections 135, 137, 199, 221, 222, 911, 931, and 

14 933, and 

15 ‘‘(2) increased by the amount of interest re16 ceived or accrued by the taxpayer during the taxable 

17 year which is exempt from tax.’’. 

18 (b) SOCIAL SECURITY TRUST FUNDS HELD HARM19 LESS.—There are hereby appropriated (out of any money 

20 in the Treasury not otherwise appropriated) for each fiscal 

21 year to each fund under the Social Security Act or the 

22 Railroad Retirement Act of 1974 an amount equal to the 

23 reduction in the transfers to such fund for such fiscal year 

24 by reason of the amendments made by subsection (a). 


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

2 this section shall apply to taxable years ending after the 

3 date of the enactment of this Act. 

Æ 


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