I 

115TH CONGRESS 

1ST SESSION H. R. 1631 

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 

MARCH 20, 2017 

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 2017’’. 


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

3 BENEFIT BASE AFTER 2017. 

4 (a) DETERMINATION OF WAGES ABOVE CONTRIBU5 TION AND BENEFIT BASE AFTER 2017.— 

6 (1) AMENDMENTS TO THE INTERNAL REVENUE

7 CODE.— 

8 (A) IN GENERAL.—Paragraph (1) of sec9 tion 3121(a) of the Internal Revenue Code of 

10 1986 is amended by inserting after ‘‘such cal11 endar year.’’ the following: ‘‘The preceding sen12 tence shall apply only to calendar years for 

13 which the contribution and benefit base (as so 

14 determined) is less than $300,000, and, for 

15 such calendar years, only to so much of the re16 muneration paid to such employee by such em17 ployer with respect to employment as does not 

18 exceed $300,000.’’. 

19 (B) CONFORMING AMENDMENT.—Para20 graph (1) of section 3121(a) of such Code is 

21 amended by striking ‘‘Act) to’’ and inserting 

22 ‘‘Act), or in excess of $300,000, to’’. 

23 (2) AMENDMENT TO THE SOCIAL SECURITY

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

25 Act (42 U.S.C. 409(a)(1)(I)) is amended by insert26 ing before the semicolon at the end the following: 


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1 ‘‘except that this subparagraph shall apply only to 

2 calendar years for which the contribution and ben3 efit base (as so determined) is less than $300,000, 

4 and, for such calendar years, only to the extent re5 muneration paid to such employee by such employer 

6 with respect to employment does not exceed 

7 $300,000’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply with respect to remu10 neration paid in calendar years after 2017. 

11 (b) DETERMINATION OF SELF-EMPLOYMENT IN12 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

13 2017.— 

14 (1) AMENDMENTS TO THE INTERNAL REVENUE

15 CODE.— 

16 (A) IN GENERAL.—Paragraph (1) of sec17 tion 1402(b) of the Internal Revenue Code of 

18 1986 is amended to read as follows: 

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

20 1401(a)— 

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

22 (as determined under section 3121(a) without 

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

24 than $300,000 and more than the contribution 

25 and benefit base (as determined under section 


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1 230 of the Social Security Act) which is effec2 tive for the calendar year in which such taxable 

3 year begins, the lesser of— 

4 ‘‘(i) the excess of $300,000 over the 

5 wages (as so determined) paid to such in6 dividual during such taxable year, or 

7 ‘‘(ii) the net earnings from self-em8 ployment for the taxable year, and 

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

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

11 contribution and benefit base and for whom the 

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

13 self-employment and wages (as so determined) 

14 paid to such individual is greater than such 

15 contribution and benefit base, the lesser of— 

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

17 contribution and benefit base, or 

18 ‘‘(ii) the excess of $300,000 over such 

19 contribution and benefit base.’’. 

20 (B) PHASEOUT.—Subsection (b) of section 

21 1402 of the Internal Revenue Code of 1986 is 

22 amended by adding at the end the following: 

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

24 years beginning in calendar years for which the 

25 contribution and benefit base (as determined 


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1 under section 230 of the Social Security Act) is 

2 less than $300,000.’’. 

3 (2) AMENDMENTS TO THE SOCIAL SECURITY

4 ACT.— 

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

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

7 amended— 

8 (i) in subparagraph (I)— 

9 (I) by inserting ‘‘and before 

10 2018’’ after ‘‘1974’’; and 

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

12 and 

13 (ii) by adding at the end the fol14 lowing: 

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

16 calendar year after 2017, an amount equal to— 

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

18 wages (as determined under section 209(a) 

19 without regard to paragraph (1) of such 

20 section) less than $300,000 and more than 

21 the contribution and benefit base (as deter22 mined under section 230 of the Social Se23 curity Act) which is effective for the cal24 endar year in which such taxable year be25 gins, the lesser of— 


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1 ‘‘(I) the excess of $300,000 over 

2 the wages (as so determined) paid to 

3 such individual during such taxable 

4 year, or 

5 ‘‘(II) the net earnings from self6 employment for the taxable year, and 

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

8 wages (as so determined) less than or 

9 equal to such contribution and benefit base 

10 and for whom the sum, for the taxable 

11 year, of net earnings from self-employment 

12 and wages (as so determined) paid to such 

13 individual is greater than such contribution 

14 and benefit base, the lesser of— 

15 ‘‘(I) the excess of such sum over 

16 such contribution and benefit base, or 

17 ‘‘(II) the excess of $300,000 over 

18 such contribution and benefit base.’’. 

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

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

21 amended by adding at the end the following: 

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

23 years beginning in calendar years for which the 

24 contribution and benefit base (as determined 

25 under section 230) is less than $300,000.’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to net earnings from 

3 self-employment derived, and remuneration paid, in 

4 calendar years after 2017. 

5 SEC. 3. INCLUSION OF EARNINGS OVER $300,000 IN SOCIAL 

6 SECURITY BENEFIT FORMULA. 

7 (a) INCLUSION OF EARNINGS OVER $300,000 IN DE8 TERMINATION OF PRIMARY INSURANCE AMOUNTS.—Sec9 tion 215(a)(1)(A) of the Social Security Act (42 U.S.C. 

10 415(a)(1)(A)) is amended— 

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

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

13 end; and 

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

15 ‘‘(iv) 3 percent of the individual’s excess aver16 age indexed monthly earnings (as defined in sub17 section (b)(5)(A)).’’. 

18 (b) DEFINITION OF EXCESS AVERAGE INDEXED

19 MONTHLY EARNINGS.—Section 215(b) of the Social Secu20 rity Act (42 U.S.C. 415(b)) is amended— 

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

22 income’’ each place such terms appear and inserting 

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

24 respectively; and 

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


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

2 monthly earnings shall be equal to the amount of the indi3 vidual’s average indexed monthly earnings that would be 

4 determined under this subsection by substituting ‘excess 

5 wages’ for ‘basic wages’ and ‘excess self-employment in6 come’ for ‘basic self-employment income’ each place such 

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

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

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

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

11 does not exceed the contribution and benefit base for 

12 the year; 

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

14 means that portion of the self-employment income of 

15 an individual credited to a year that does not exceed 

16 an amount equal to the contribution and benefit 

17 base for the year minus the amount of the wages 

18 paid to the individual in the year; 

19 ‘‘(iii) the term ‘excess wages’ means that por20 tion of the wages of an individual paid in a year 

21 after 2017 in excess of the higher of $300,000 or 

22 the contribution and benefit base for the year; and 

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

24 means that portion of the self-employment income of 

25 an individual credited to a year after 2017 in excess 


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1 of the higher of $300,000 or such contribution and 

2 benefit base.’’. 

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

4 of the Social Security Act (42 U.S.C. 415(e)(1)) is amend5 ed by inserting ‘‘and before 2018’’ after ‘‘1974’’. 

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

7 this section shall apply with respect to individuals who ini8 tially become eligible (within the meaning of section 

9 215(a)(3)(B) of the Social Security Act) for old-age or dis10 ability insurance benefits under title II of the Social Secu11 rity Act, or who die (before becoming eligible for such ben12 efits), in any calendar year after 2017. 

13 SEC. 4. MODIFICATION OF AMOUNT OF SOCIAL SECURITY 

14 BENEFITS INCLUDED IN GROSS INCOME. 

15 (a) IN GENERAL.—Section 86 of the Internal Rev16 enue Code of 1986 is amended by striking subsections (a), 

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

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

19 year of any taxpayer described in subsection (b) (notwith20 standing section 207 of the Social Security Act) includes 

21 social security benefits in an amount equal to the lesser 

22 of— 

23 ‘‘(1) 85 percent of the social security benefits 

24 received during the taxable year, or 


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1 ‘‘(2) 85 percent of the excess described in sub2 section (b). 

3 ‘‘(b) TAXPAYERS TO WHOM SUBSECTION (a) AP4 PLIES.—A taxpayer is described in this subsection if— 

5 ‘‘(1) the sum of— 

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

7 the taxpayer for the taxable year, plus 

8 ‘‘(B) 85 percent of the social security bene9 fits received during the taxable year, exceeds 

10 ‘‘(2) $100,000. 

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

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

13 income’ means adjusted gross income— 

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

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

16 933, and 

17 ‘‘(2) increased by the amount of interest re18 ceived or accrued by the taxpayer during the taxable 

19 year which is exempt from tax.’’. 

20 (b) SOCIAL SECURITY TRUST FUNDS HELD HARM21 LESS.—There are hereby appropriated (out of any money 

22 in the Treasury not otherwise appropriated) for each fiscal 

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

24 Railroad Retirement Act of 1974 an amount equal to the 


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

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

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

4 this section shall apply to taxable years ending after the 

5 date of the enactment of this Act. 

Æ 


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