I 

109TH CONGRESS 

1ST SESSION H. R. 1517 

To amend the Internal Revenue Code of 1986 to repeal the 1993 income 

tax increase on Social Security benefits. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2005 

Mr. SAM JOHNSON of Texas (for himself, Mr. HERGER, Mr. RYAN of Wisconsin, Mr. SENSENBRENNER, Mr. NEY, Mr. STEARNS, and Mr. SIMMONS) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the 1993 income tax increase on Social Security benefits. 

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 Bene5 fits Tax Relief Act of 2005’’. 
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1 SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 

2 SECURITY BENEFITS. 

3 (a) RESTORATION OF PRIOR LAW FORMULA.—Sub4 section (a) of section 86 of the Internal Revenue Code of 

5 1986 is amended to read as follows: 

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

7 year of any taxpayer described in subsection (b) (notwith8 standing section 207 of the Social Security Act) includes 

9 Social Security benefits in an amount equal to the lesser 

10 of— 

11 ‘‘(1) one-half of the Social Security benefits re12 ceived during the taxable year, or 

13 ‘‘(2) one-half of the excess described in sub14 section (b)(1).’’ 

15 (b) REPEAL OF ADJUSTED BASE AMOUNT.—Sub16 section (c) of section 86 of such Code is amended to read 

17 as follows: 

18 ‘‘(c) BASE AMOUNT.—For purposes of this section, 

19 the term ‘base amount’ means— 

20 ‘‘(1) except as otherwise provided in this sub21 section, $25,000, 

22 ‘‘(2) $32,000 in the case of a joint return, and 

23 ‘‘(3) zero in the case of a taxpayer who— 

24 ‘‘(A) is married as of the close of the tax25 able year (within the meaning of section 7703) 
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1 but does not file a joint return for such year, 

2 and 

3 ‘‘(B) does not live apart from his spouse at 

4 all times during the taxable year.’’ 

5 (c) CONFORMING AMENDMENTS.— 

6 (1) Subparagraph (A) of section 871(a)(3) of 

7 such Code is amended by striking ‘‘85 percent’’ and 

8 inserting ‘‘50 percent’’. 

9 (2)(A) Subparagraph (A) of section 121(e)(1) 

10 of the Social Security Amendments of 1983 (Public 

11 Law 98–21) is amended— 

12 (i) by striking ‘‘(A) There’’ and inserting 

13 ‘‘There’’; 

14 (ii) by striking ‘‘(i)’’ immediately following 

15 ‘‘amounts equivalent to’’; and 

16 (iii) by striking ‘‘, less (ii)’’ and all that 

17 follows and inserting a period. 

18 (B) Paragraph (1) of section 121(e) of such Act 

19 is amended by striking subparagraph (B). 

20 (C) Paragraph (3) of section 121(e) of such Act 

21 is amended by striking subparagraph (B) and by re22 designating subparagraph (C) as subparagraph (B). 

23 (D) Paragraph (2) of section 121(e) of such 

24 Act is amended in the first sentence by striking 

25 ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (1)’’. 
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1 (d) EFFECTIVE DATES.— 

2 (1) IN GENERAL.—Except as otherwise pro3 vided in this subsection, the amendments made by 

4 this section shall apply to taxable years beginning 

5 after December 31, 2004. 

6 (2) SUBSECTION (c)(1).—The amendment made 

7 by subsection (c)(1) shall apply to benefits paid after 

8 December 31, 2004. 

9 (3) SUBSECTION (c)(2).—The amendments 

10 made by subsection (c)(2) shall apply to tax liabil11 ities for taxable years beginning after December 31, 

12 2004. 

13 SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL IN14 SURANCE TRUST FUND. 

15 (a) IN GENERAL.—There are hereby appropriated to 

16 the Hospital Insurance Trust Fund established under sec17 tion 1817 of the Social Security Act amounts equal to the 

18 reduction in revenues to the Treasury by reason of the 

19 enactment of this Act. Amounts appropriated by the pre20 ceding sentence shall be transferred from the general fund 

21 at such times and in such manner as to replicate to the 

22 extent possible the transfers which would have occurred 

23 to such Trust Fund had this Act not been enacted. 

24 (b) REPORTS.—The Secretary of the Treasury or the 

25 Secretary’s delegate shall annually report to the Com-
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1 mittee on Ways and Means of the House of Representa2 tives and the Committee on Finance of the Senate the 

3 amounts and timing of the transfers under this section. 

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