(b) DETERMINATION OF TAXABLE SELF-EMPLOY-
MENT INCOME ABOVE CONTRIBUTION
AND BENEFIT 
BASE AFTER 2016.— 
(1) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.—Section 1402 of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subsection (b)(1), by striking ‘‘that 
part of the net earnings’’ and all that follows 
through ‘‘minus’’ and inserting the following: 
‘‘an amount equal to the applicable percentage 
(as determined under subsection (d)(2)) of that 
part of the net earnings from self-employment 
which is in excess of the difference (not to be 
less than zero) between (i) an amount equal to 
the contribution and benefit base (as deter-
mined under section 230 of the Social Security 
Act) which is effective for the calendar year in 
which such taxable year begins, and’’; and 
(B) in subsection (d)— 
(i) by striking ‘‘(d) EMPLOYEE AND 
WAGES.—The term’’ and inserting the fol-
lowing: 
‘‘(d) RULES AND DEFINITIONS.— 
‘‘(1) EMPLOYEE AND WAGES.—The term’’; and 
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(ii) by adding at the end the fol-
lowing: 
‘‘(2) APPLICABLE PERCENTAGE OF NET EARN-
INGS
FROM
SELF-EMPLOYMENT
IN
DETERMINING 
TAXABLE
SELF-EMPLOYMENT
INCOME.—For pur-
poses of subsection (b)(1), the applicable percentage 
for a taxable year beginning in any calendar year re-
ferred to in such paragraph shall be determined in 
accordance with the following table: 
The applicable 
‘‘In the case of: 
percentage is: 
Calendar year 2017 ...........................................................
90 percent
Calendar year 2018 ...........................................................
80 percent
Calendar year 2019 ...........................................................
70 percent
Calendar year 2020 ...........................................................
60 percent
Calendar year 2021 ...........................................................
50 percent
Calendar year 2022 ...........................................................
40 percent
Calendar year 2023 ...........................................................
30 percent
Calendar year 2024 ...........................................................
20 percent
Calendar year 2025 ...........................................................
10 percent
Calendar years after 2026 ................................................
0 percent.’’. 
(2) AMENDMENTS
TO
THE
SOCIAL
SECURITY 
ACT.—Section 211 of the Social Security Act (42 
U.S.C. 411) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(I)— 
(I) by striking ‘‘or’’ after the 
semicolon; and 
(II) by inserting ‘‘and before 
2017’’ after ‘‘1974’’; 
(ii) by redesignating paragraph (2) as 
paragraph (3); and 
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(iii) by inserting after paragraph (1) 
the following: 
‘‘(2) For any taxable year beginning in any cal-
endar year after 2016, an amount equal to the appli-
cable percentage (as determined under subsection 
(l)) of that part of net earnings from self-employ-
ment which is in excess of the difference (not to be 
less than zero) between— 
‘‘(A) an amount equal to the contribution 
and benefit base (as determined under section 
230) that is effective for such calendar year, 
and 
‘‘(B) the amount of the wages paid to such 
individual during such taxable year; or’’; and 
(B) by adding at the end the following: 
‘‘(l) For purposes of subsection (b)(2), the applicable 
percentage for a taxable year beginning in any calendar 
year referred to in such paragraph shall be determined 
in accordance with the following table: 
The applicable 
‘‘In the case of: 
percentage is: 
Calendar year 2017 ...........................................................
90 percent
Calendar year 2018 ...........................................................
80 percent
Calendar year 2019 ...........................................................
70 percent
Calendar year 2020 ...........................................................
60 percent
Calendar year 2021 ...........................................................
50 percent
Calendar year 2022 ...........................................................
40 percent
Calendar year 2023 ...........................................................
30 percent
Calendar year 2024 ...........................................................
20 percent
Calendar year 2025 ...........................................................
10 percent
Calendar years after 2026 ................................................
0 percent.’’. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to taxable 
years beginning in calendar years after 2016. 
(c) COMPUTING
AVERAGE
INDEXED
MONTHLY 
EARNINGS.—Section 215(e) of the Social Security Act (42 
U.S.C. 415(e)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘and’’ after ‘‘before 
1975,’’; 
(B) by inserting ‘‘and before 2017’’ after 
‘‘after 1974’’; and 
(C) by inserting ‘‘, and the applicable per-
centage of the excess over an amount equal to 
the contribution and benefit base (as deter-
mined under section 230) in the case of any 
calendar year after 2014 with respect to which 
such contribution and benefit base is effective,’’ 
after ‘‘benefit base is effective,’’; and 
(2) by adding at the end the following: 
‘‘(3) For purposes of paragraph (1), the appli-
cable percentage for a year shall be determined in 
accordance with the following table: 
The applicable 
‘‘In the case of: 
percentage is: 
Calendar year 2017 ...........................................................
90 percent
Calendar year 2018 ...........................................................
80 percent
Calendar year 2019 ...........................................................
70 percent
Calendar year 2020 ...........................................................
60 percent
Calendar year 2021 ...........................................................
50 percent
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The applicable 
‘‘In the case of: 
percentage is: 
Calendar year 2022 ...........................................................
40 percent
Calendar year 2023 ...........................................................
30 percent
Calendar year 2024 ...........................................................
20 percent
Calendar year 2025 ...........................................................
10 percent
Calendar years after 2026 ................................................
0 percent.’’. 
(d) 
CONFORMING
AMENDMENT.—Section 
215(i)(2)(C)(i) of the Social Security Act (42 U.S.C. 
415(i)(2)(C)(i)) is amended by striking ‘‘the Commis-
sioner’s estimate of the extent to which the cost of such 
increase would be met by an increase in the contribution 
and benefit base under section 230 and the estimated 
amount of the increase in such base,’’. 
SEC. 6. NEW BEND POINT FOR AMOUNTS ABOVE CONTRIBU-
TION AND BENEFIT BASE. 
(a) IN GENERAL.—Section 215(a)(1) of the Social 
Security Act (42 U.S.C. 415(a)(1)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (ii), by striking ‘‘and’’; 
(B) in clause (iii), by striking the comma 
at the end and inserting the following: ‘‘but do 
not exceed the amount established for purposes 
of this clause by subparagraph (B), and’’; and 
(C) by inserting after clause (iii) the fol-
lowing: 
‘‘(iv) 3 percent of the individual’s av-
erage indexed monthly earnings to the ex-
tent that such earnings exceed the amount 
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established for purposes of clause (iii),’’; 
and 
(2) in subparagraph (B)— 
(A) by inserting ‘‘and before 2017’’ after 
‘‘1979’’ in clause (ii); 
(B) by redesignating clause (iii) as clause 
(v); 
(C) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) For individuals who initially be-
come eligible for old-age or disability insur-
ance benefits, or who die (before becoming 
eligible for such benefits), in the calendar 
year 2017— 
‘‘(I) the amounts established for 
purposes of clauses (i) and (ii) of sub-
paragraph (A) shall be the amounts 
so established under clause (ii) of this 
subparagraph for such calendar year; 
and 
‘‘(II) the amount established for 
purposes of clause (iii) of subpara-
graph (A) shall be the amount of the 
contribution and benefit base with re-
spect to remuneration paid (and tax-
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able years beginning) in calendar year 
2017. 
‘‘(iv) For individuals who initially be-
come eligible for old-age or disability insur-
ance benefits, or who die (before becoming 
eligible for such benefits), in any calendar 
year after 2017, the amount so established 
shall equal the product of the cor-
responding amount established with re-
spect to the calendar year 2017 under 
clause (iii) of this subparagraph and the 
quotient obtained by dividing— 
‘‘(I) the national average wage 
index (as defined in section 209(k)(1)) 
for the second calendar year preceding 
the calendar year for which the deter-
mination is made, by 
‘‘(II) the national average wage 
index (as so defined) for 2015.’’; and 
(D) in clause (v), as so redesignated by 
subparagraph (A) of this paragraph, by insert-
ing ‘‘and clause (iv)’’ after ‘‘clause (ii)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to individuals who ini-
tially become eligible (within the meaning of section 
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215(a)(3)(B)) for old-age or disability insurance benefits 
under title II of the Social Security Act, or who die (before 
becoming eligible for such benefits), in any calendar year 
after 2016. 
SEC. 7. INCREASE IN EMPLOYMENT TAX RATE. 
(a) WAGES.— 
(1) EMPLOYEES.—Subsection (a) of section 
3101 of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.— 
‘‘(1) IN GENERAL.—In addition to other taxes, 
there is hereby imposed on the income of every indi-
vidual a tax equal to the applicable percentage of the 
wages (as defined in section 3121(a)) received by 
him with respect to employment (as defined in sec-
tion 3121(b)). 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means the percentage determined under the fol-
lowing table: 
The applicable 
‘‘In case of wages received during: 
percentage 
shall be: 
2017 ..................................................................................
6.25 percent
2018 ..................................................................................
6.30 percent
2019 ..................................................................................
6.35 percent
2020 ..................................................................................
6.40 percent
2021 ..................................................................................
6.45 percent
2022 or thereafter .............................................................
6.50 percent.’’. 
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(2) EMPLOYERS.—Subsection (a) of section 
3111 of such Code is amended to read as follows: 
‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.— 
‘‘(1) IN GENERAL.—In addition to other taxes, 
there is hereby imposed on every employer an excise 
tax, with respect to having individuals in his employ, 
equal to the applicable percentage of the wages (as 
defined in section 3121(a)) paid by him with respect 
to employment (as defined in section 3121(b)). 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means the percentage determined under the fol-
lowing table: 
The applicable 
‘‘In case of a taxable year 
beginning during calendar year: 
percentage 
shall be: 
2017 ..................................................................................
6.25 percent
2018 ..................................................................................
6.30 percent
2019 ..................................................................................
6.35 percent
2020 ..................................................................................
6.40 percent
2021 ..................................................................................
6.45 percent
2022 or thereafter .............................................................
6.50 percent.’’. 
(b) SELF-EMPLOYMENT.—Subsection (a) of section 
1401 of such Code is amended to read as follows: 
‘‘(a) OLD-AGE, SURVIVORS, AND DISABILITY INSUR-
ANCE.— 
‘‘(1) In addition to other taxes, there shall be 
imposed for each taxable year, on the self-employ-
ment income of every individual, a tax equal to the 
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applicable percentage of the amount of the self-em-
ployment income for such taxable year. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means the percentage determined under the fol-
lowing table: 
The applicable 
‘‘In case of a taxable year 
beginning during calendar year: 
percentage 
shall be: 
2017 ..................................................................................
12.5 percent
2018 ..................................................................................
12.6 percent
2019 ..................................................................................
12.7 percent
2020 ..................................................................................
12.8 percent
2021 ..................................................................................
12.9 percent
2022 or thereafter .............................................................
13.0 percent.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to remuneration re-
ceived, and taxable years beginning after, December 31, 
2016. 
SEC. 8. NON-APPLICATION OF INCREASE IN SOCIAL SECU-
RITY BENEFITS FOR MEANS-TESTED PRO-
GRAMS. 
Any increase in monthly insurance benefits under 
title II of the Social Security Act as a result of the amend-
ments made by this Act shall not be regarded as income 
or resources for any month after December 2016, for pur-
poses of determining the eligibility of the recipient (or the 
recipient’s spouse or family) for benefits or assistance, or 
the amount or extent of benefits or assistance, under any 
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Federal program or under any State or local program fi-
nanced in whole or in part with Federal funds. 
Æ 
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