I

107TH CONGRESS

1ST SESSION H. R. 2106

To amend the Internal Revenue Code of 1986 to increase the amount of

Social Security benefits which are exempt from taxation.

IN THE HOUSE OF REPRESENTATIVES

JUNE 7, 2001

Mr. LARSON of Connecticut 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 increase

the amount of Social Security benefits which are exempt

from taxation.

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 2001’’.

6 SEC. 2. INCREASE IN ADJUSTED BASE AMOUNT CONTIN7 GENT ON AVAILABILITY OF BUDGET SUR8 PLUSES.

9 (a) IN GENERAL.—Section 86 of the Internal Rev10 enue Code of 1986 (relating to social security and tier 1
2

•HR 2106 IH

1 railroad retirement benefits) is amended by adding at the

2 end the following new subsection:

3 ‘‘(g) INCREASE IN ADJUSTED BASE AMOUNT CON4 TINGENT ON AVAILABILITY OF BUDGET SURPLUSES.—

5 ‘‘(1) IN GENERAL.—For any taxable year be6 ginning after December 31, 2001, subsection (c)(2)

7 shall be applied—

8 ‘‘(A) by substituting ‘$80,000’ for

9 ‘$34,000’ in subparagraph (A) thereof, and

10 ‘‘(B) by substituting ‘$100,000’ for

11 ‘$44,000’ in subparagraph (B) thereof.

12 ‘‘(2) CONTINGENCY.—

13 ‘‘(A) IN GENERAL.—Paragraph (1) shall

14 apply to taxable years beginning in any cal15 endar year only if the Secretary of the Treasury

16 certifies (before the close of such calendar year)

17 that the condition specified in subparagraph

18 (B) is met with respect to such calendar year.

19 ‘‘(B) CONDITION.—The condition specified

20 in this subparagraph is met for any calendar

21 year if the projected on-budget surplus for the

22 fiscal year beginning in such calendar year (de23 termined by excluding the receipts and dis24 bursements of part A of the medicare program)

25 is greater than the projected appropriations
3

•HR 2106 IH

1 that would be required by section 3 of the So2 cial Security Benefits Tax Relief Act of 2001

3 for such fiscal year if paragraph (1) had been

4 in effect for all taxable years after 2001.’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 this section shall apply to taxable years beginning after

7 December 31, 2001.

8 SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL IN9 SURANCE TRUST FUND.

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

11 the Hospital Insurance Trust Fund established under sec12 tion 1817 of the Social Security Act amounts equal to the

13 reduction in revenues to the Treasury by reason of the

14 enactment of this Act. Amounts appropriated by the pre15 ceding sentence shall be transferred from the general fund

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

17 extent possible the transfers which would have occurred

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

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

20 Secretary’s delegate shall annually report to the Com21 mittee on Ways and Means of the House of Representa22 tives and the Committee on Finance of the Senate the

23 amounts and timing of the transfers under this section.

Æ