I

103D CONGRESS

1ST SESSION H. R. 263

To repeal the provisions of the Internal Revenue Code of 1986 relating

to the taxation of up to one-half of an individual’s social security and

certain railroad retirement benefits.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. NEAL of North Carolina introduced the following bill; which was referred

to the Committee on Ways and Means

A BILL

To repeal the provisions of the Internal Revenue Code of

1986 relating to the taxation of up to one-half of an

individual’s social security and certain railroad retirement 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. REPEAL OF PROVISIONS WHICH REQUIRE TAX4 ATION OF UP TO ONE-HALF OF SOCIAL SECU5 RITY AND RAILROAD RETIREMENT BENEFITS.

6 (a) IN GENERAL.—Section 86 of the Internal Reve7 nue Code of 1986 (relating to inclusion of social security
2

•HR 263 IH

1 and tier 1 railroad retirement benefits in gross income)

2 is hereby repealed.

3 (b) REPEAL OF RETURN REQUIREMENT.—Section

4 6050F of such Code (relating to returns relating to social

5 security benefits) is hereby repealed.

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

7 (1) Subparagraph (B) of section 22(c)(3) of

8 such Code is amended by striking out ‘‘any amount

9 treated as a social security benefit under section

10 86(d)(3)’’ and inserting in lieu thereof ‘‘if, by reason

11 of section 224 of the Social Security Act (or by rea12 son of section 3(a)(1) of the Railroad Retirement

13 Act of 1974), any benefit otherwise payable under

14 title II of the Social Security Act or the Railroad

15 Retirement Act of 1974 is reduced by reason of the

16 receipt of a benefit under a workmen’s compensation

17 act, the portion of such benefit received under the

18 workmen’s compensation act which equals such de19 duction’’.

20 (2) Paragraph (3) of section 72(r) of such Code

21 is amended to read as follows:

22 ‘‘(3) TIER 1 RAILROAD RETIREMENT BENE23 FIT.—For purposes of paragraph (1), the term ‘tier

24 1 railroad retirement benefit’ means a monthly bene-
3

•HR 263 IH

1 fit under section 3(a), 3(f)(3), 4(a), or 4(f) of the

2 Railroad Retirement Act of 1974.’’

3 (3) Paragraph (8) of section 861(a) of such

4 Code is hereby repealed.

5 (4) Paragraph (3) of section 871(a) of such

6 Code is hereby repealed.

7 (5) Subsection (g) of section 1441 of such Code

8 is hereby repealed.

9 (6) Paragraph (1) of section 6050G(a) of such

10 Code is amended by striking out ‘‘86(d)(4)’’ and in11 serting in lieu thereof ‘‘72(r)(3)’’.

12 (7) Paragraph (6) of section 6103(h) of such

13 Code is hereby repealed.

14 (8) Paragraph (4) of section 6103(p) of such

15 Code is amended by striking out ‘‘(h)(6),’’ where

16 such term appears in the material preceding sub17 paragraph (A) and in subparagraph (F)(ii).

18 (9) Subsection (e) of section 121 of the Social

19 Security Amendments of 1983 is hereby repealed.

20 (10) Subsection (k) of section 1113 of the

21 Right to Financial Privacy Act of 1978 (12 U.S.C.

22 3413) is hereby repealed.

23 (d) CLERICAL AMENDMENTS.—
4

•HR 263 IH

1 (1) The table of sections for part II of sub2 chapter B of chapter 1 of such Code is amended by

3 striking out the item relating to section 86.

4 (2) The table of sections for subpart B of part

5 III of subchapter A of chapter 61 of such Code is

6 amended by striking out the item relating to section

7 6050F.

8 (e) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to benefits received after December

10 31, 1992, in taxable years beginning after such date.

Æ