II 

109TH CONGRESS 

1ST SESSION S. 774 

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

tax increase on Social Security benefits. 

IN THE SENATE OF THE UNITED STATES 

APRIL 13, 2005 

Mr. BUNNING introduced the following bill; which was read twice and referred 

to the Committee on Finance 

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’’. 

6 SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 

7 SECURITY BENEFITS. 

8 (a) RESTORATION OF PRIOR LAW FORMULA.—Sub9 section (a) of section 86 of the Internal Revenue Code of 
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1 1986 (relating to social security and tier 1 railroad retire2 ment benefits) is amended to read as follows: 

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

4 year of any taxpayer described in subsection (b) (notwith5 standing section 207 of the Social Security Act) includes 

6 social security benefits in an amount equal to the lesser 

7 of— 

8 ‘‘(1) one-half of the social security benefits re9 ceived during the taxable year, or 

10 ‘‘(2) one-half of the excess described in sub11 section (b)(1).’’ 

12 (b) REPEAL OF ADJUSTED BASE AMOUNT.—Sub13 section (c) of section 86 of the Internal Revenue Code of 

14 1986 is amended to read as follows: 

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

16 the term ‘base amount’ means— 

17 ‘‘(1) except as otherwise provided in this sub18 section, $25,000, 

19 ‘‘(2) $32,000 in the case of a joint return, and 

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

21 ‘‘(A) is married as of the close of the tax22 able year (within the meaning of section 7703) 

23 but does not file a joint return for such year, 

24 and 
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1 ‘‘(B) does not live apart from his spouse at 

2 all times during the taxable year.’’ 

3 (c) CONFORMING AMENDMENTS.— 

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

5 the Internal Revenue Code of 1986 is amended by 

6 striking ‘‘85 percent’’ and inserting ‘‘50 percent’’. 

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

8 of the Social Security Amendments of 1983 (Public 

9 Law 98–21) is amended— 

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

11 ‘‘There’’; 

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

13 ‘‘amounts equivalent to’’; and 

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

15 follows and inserting a period. 

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

17 is amended by striking subparagraph (B). 

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

19 is amended by striking subparagraph (B) and by re20 designating subparagraph (C) as subparagraph (B). 

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

22 Act is amended in the first sentence by striking 

23 ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (1)’’. 

24 (d) EFFECTIVE DATES.— 
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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to taxable years beginning 

4 after December 31, 2005. 

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

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

7 December 31, 2005. 

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

9 made by subsection (c)(2) shall apply to tax liabil10 ities for taxable years beginning after December 31, 

11 2005. 

12 SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL IN13 SURANCE TRUST FUND. 

14 There are hereby appropriated to the Federal Hos15 pital Insurance Trust Fund established under section 

16 1817 of the Social Security Act (42 U.S.C. 1395i) 

17 amounts equal to the reduction in revenues to the Treas18 ury by reason of the enactment of this Act. Amounts ap19 propriated by the preceding sentence shall be transferred 

20 from the general fund at such times and in such manner 

21 as to replicate to the extent possible the transfers which 

22 would have occurred to such Trust Fund had this Act not 

23 been enacted.

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