I 

111TH CONGRESS 

1ST SESSION H. R. 143 

To amend the Internal Revenue Code of 1986 to provide for a two-month 

suspension of employment and income taxes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. GOHMERT (for himself, Mr. SHADEGG, Mrs. BLACKBURN, Mr. CARTER, 

Mr. FRANKS of Arizona, Mr. PENCE, Mr. WESTMORELAND, Mr. SESSIONS, Mr. MCCOTTER, Mrs. MYRICK, Mr. KLINE of Minnesota, Mr. 

AKIN, Mr. MCHENRY, Mr. NEUGEBAUER, Mrs. MCMORRIS RODGERS, 

Mrs. BACHMANN, Mr. GARRETT of New Jersey, Mr. PRICE of Georgia, 

Mr. CULBERSON, Mr. PAUL, Mr. BURTON of Indiana, Mr. MACK, Mr. 

BROUN of Georgia, Mr. LAMBORN, Mr. PITTS, Mr. BARTLETT, Mr. POE

of Texas, Mr. SAM JOHNSON of Texas, Mr. BARRETT of South Carolina, 

Mr. GINGREY of Georgia, Mr. ISSA, Mr. YOUNG of Alaska, Mr. LINDER, 

Mr. HALL of Texas, Mr. DEAL of Georgia, Mr. PLATTS, Mr. FLAKE, Mr. 

NUNES, Mr. SENSENBRENNER, Mr. TERRY, Ms. FALLIN, Mr. 

HENSARLING, Mr. SCALISE, Mr. LATTA, Mr. CONAWAY, Mr. YOUNG of 

Florida, Mr. MARCHANT, Mr. DAVIS of Kentucky, Mr. GERLACH, Mr. 

OLSON, and Mr. HOEKSTRA) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the 

Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for a two-month suspension of employment and income 

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, 


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1 SECTION 1. SUSPENSION OF EMPLOYMENT TAXES. 

2 (a) TAX ON EMPLOYEES.—Section 3101 of the Inter3 nal Revenue Code of 1986 (relating to rate of tax) is 

4 amended by adding at the end the following new sub5 section: 

6 ‘‘(d) SUSPENSION.—In the case of wages received for 

7 service performed during the 2-month period beginning 

8 with the first full month after the date of the enactment 

9 of this subsection, the percentage under subsections (a) 

10 and (b) shall be zero percent.’’. 

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

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

13 the end the following new subsection: 

14 ‘‘(d) SUSPENSION.—In the case of wages paid for 

15 service performed during the 2-month period beginning 

16 with the first full month after the date of the enactment 

17 of this subsection, the percentage under subsections (a) 

18 and (b) shall be zero percent.’’. 

19 (c) TAX ON SELF-EMPLOYMENT INCOME.—Section 

20 1401 of such Code (relating to rate of tax) is amended 

21 by adding at the end the following new subsection: 

22 ‘‘(d) SUSPENSION.—In the case of self-employment 

23 income for service performed during the 2-month period 

24 beginning with the first full month after the date of the 

25 enactment of this subsection, the percentage under sub26 sections (a) and (b) shall be zero percent.’’. 


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1 (d) EFFECTIVE DATES.— 

2 (1) The amendments made by subsections (a) 

3 and (b) shall apply to remuneration paid or received 

4 after the date of the enactment of this Act. 

5 (2) The amendment made by subsection (c) 

6 shall apply to taxable years beginning after Decem7 ber 31, 2008. 

8 SEC. 2. SUSPENSION OF INCOME TAXES. 

9 (a) IN GENERAL.—Part III of subchapter B of chap10 ter 1 of the Internal Revenue Code of 1986 (relating to 

11 items specifically excluded from gross income) is amended 

12 by inserting after section 139B the following new section: 

13 ‘‘SEC. 139C. WAGE AND SELF-EMPLOYMENT INCOME. 

14 ‘‘In the case of an individual, gross income shall not 

15 include— 

16 ‘‘(1) any remuneration for service performed 

17 during the 2-month period beginning with the first 

18 full month after the date of the enactment of this 

19 section, by an employee for his employer, including 

20 the cash value of all remuneration (including bene21 fits) paid in any medium other than cash wages (as 

22 defined in section 3121), and 

23 ‘‘(2) any self-employment income (as defined in 

24 section 1402) derived by such individual during such 

25 period.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for such part is amended by inserting after the item relat3 ing to section 139B the following new item: 

‘‘Sec. 139C. Wage and self-employment income.’’. 

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

5 this section shall apply to taxable years ending after De6 cember 31, 2008. 

7 SEC. 3. FUNDING OF SOCIAL SECURITY TRUST FUNDS WITH 

8 REPEALED TARP FUNDS. 

9 (a) REPEAL OF FINAL $350 BILLION PURCHASE AU10 THORITY UNDER TROUBLED ASSETS RELIEF PRO11 GRAM.—Section 115 of the Emergency Economic Sta12 bilization Act of 2008 (12 U.S.C. 5225) is amended— 

13 (1) in subsection (a), by striking paragraph (3); 

14 and 

15 (2) by striking subsections (c), (d), (e), and (f). 

16 (b) TRANSFER TO SOCIAL SECURITY TRUST

17 FUNDS.— 

18 (1) ESTIMATE OF SECRETARY.—The Secretary 

19 of the Treasury (in consultation with the Secretary 

20 of Health and Human Services and the Commis21 sioner of Social Security, as appropriate) shall esti22 mate the impact that the enactment of this Act has 

23 on the income and balances of the Federal Old-Age 

24 and Survivors Insurance Trust Fund, the Federal 


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1 Disability Insurance Trust Fund, and the Federal 

2 Hospital Insurance Trust Fund. 

3 (2) TRANSFER OF FUNDS.—If, under sub4 section (a), the Secretary of the Treasury estimates 

5 that the enactment of this Act has a negative impact 

6 on the income and balances of any of such funds, 

7 the Secretary shall transfer from the general reve8 nues of the Federal Government such sums as may 

9 be necessary so as to ensure that the income and 

10 balances of such funds are not reduced as a result 

11 of the enactment of this Act. 

12 SEC. 4. IMMEDIATE TERMINATION OF TARP PURCHASE AU13 THORITY. 

14 (a) IN GENERAL.—The authorities provided under 

15 section 101(a) of the Emergency Economic Stabilization 

16 Act of 2008 (12 U.S.C. 5211), excluding section 101(a)(3) 

17 of such Act, shall terminate immediately upon the enact18 ment of this Act. 

19 (b) RULE OF CONSTRUCTION.—The termination 

20 under subsection (a) shall apply to any authority of the 

21 Secretary of the Treasury under the Emergency Economic 

22 Stabilization Act of 2008 to purchase preferred or other 

23 stock or equity in any financial institution. 


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1 (c) CONFORMING AMENDMENT.—The Emergency 

2 Economic Stabilization Act of 2008 is amended by strik3 ing section 120 (12 U.S.C. 5230). 

Æ 


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