I 
108TH CONGRESS 
1ST SESSION H. R. 2346
To amend the Internal Revenue Code of 1986 to repeal the inclusion in 
gross income of Social Security benefits and tier 1 railroad retirement 
benefits. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 5, 2003
Mr. FRANKS of Arizona 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 inclusion in gross income of Social Security benefits 
and tier 1 railroad retirement benefits.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Seniors Financial Se-
curity Act of 2003’’.
SEC. 2. REPEAL OF INCLUSION IN GROSS INCOME OF SO-
CIAL SECURITY BENEFITS AND TIER 1 RAIL-
ROAD RETIREMENT BENEFITS. 
(a) IN GENERAL.—Section 86 of the Internal Rev-
enue Code of 1986 (relating to taxation of social security 
and tier 1 railroad retirement benefits) is hereby repealed. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 22(c)(3) of 
such Code (relating to treatment of certain work-
men’s compensation benefits) is amended by striking 
‘‘any amount treated as a social security benefit 
under section 86(d)(3)’’ and inserting ‘‘if, by reason 
of section 224 of the Social Security Act (or by rea-
son of section 3(a)(1) of the Railroad Retirement 
Act of 1974), any benefit otherwise payable under 
title II of the Social Security Act or the Railroad 
Retirement Act of 1974 is reduced by reason of the 
receipt of a benefit under a workmen’s compensation 
act, the portion of such benefit received under the 
workmen’s compensation act which equals such re-
duction’’. 
(2) Paragraph (3) of section 72(r) of such Code 
(defining tier 1 railroad retirement benefit) is 
amended by striking ‘‘has the meaning given such 
term by section 86(d)(4)’’ and inserting ‘‘means—
‘‘(A) the amount of the annuity under the 
Railroad Retirement Act of 1974 equal to the 
amount of the benefit to which the taxpayer 
would have been entitled under the Social Secu-
rity Act if all of the service after December 31, 
1936, of the employee (on whose employment 
record the annuity is being paid) had been in-
cluded in the term ‘employment’ as defined in 
the Social Security Act, and 
‘‘(B) a monthly annuity amount under sec-
tion 3(f)(3) of the Railroad Retirement Act of 
1974.’’. 
(3) 
Sections 
135(c)(4)(B), 
137(b)(3)(B), 
221(b)(2)(C)(ii), and 222(b)(2)(C)(ii) of such Code 
are each amended by striking ‘‘86,’’. 
(4) Clause (i) of section 219(g)(3)(A) of such 
Code is amended by striking ‘‘sections 86 and 469’’ 
and inserting ‘‘section 469’’. 
(5) Subparagraph (F) of section 469(i)(3) of 
such Code is amended by striking clause (i) and by 
redesignating clauses (ii), (iii), and (iv) as clauses 
(i), (ii), and (iii), respectively. 
(6) Paragraph (8) of section 861(a) of such 
Code (treating social security benefits as United 
States sourced) is hereby repealed.
(7) Paragraph (3) of section 871(a) of such 
Code (relating to taxation of social security benefits 
by nonresident aliens) is hereby repealed. 
(8) Subsection (g) of section 1441 of such Code 
(relating to withholding of tax on nonresident aliens) 
is hereby repealed. 
(9) Subparagraph (C) of section 3402(p)(1) of 
such Code is amended by striking clause (i) and by 
redesignating clauses (ii), (iii), and (iv) as clauses 
(i), (ii), and (iii), respectively. 
(10) Paragraph (4) of section 6015(d) of such 
Code is amended by striking the last sentence. 
(11) Section 6050F of such Code (relating to 
returns relating to social security benefits) is hereby 
repealed. 
(12) Paragraph (1) of section 6050G(a) of such 
Code (relating to returns relating to certain railroad 
retirement benefits) is amended by striking ‘‘section 
86(d)(4)’’ and inserting ‘‘section 72(r)(3)’’. 
(13)(A) Section 6103(h) of such Code (relating 
to disclosure) is amended by striking paragraph (5) 
and by redesignating paragraph (6) as paragraph 
(5).
(B) Paragraph (4) of section 6103(p) of such 
Code is amended by striking ‘‘(h)(5),’’ each place it 
appears. 
(C) Subsection (k) of section 1113 of the Right 
to Financial Privacy Act of 1978 is hereby repealed. 
(14) The table of sections for part II of sub-
chapter B of chapter 1 of such Code is amended by 
striking the item relating to section 86. 
(15) The table of sections for subpart B of part 
III of subchapter A of chapter 61 of such Code is 
amended by striking the item relating to section 
6050F. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to benefits received after December 
31, 2002, in taxable years ending after such date. 
(d) TRUST FUNDS HELD HARMLESS.—There are 
hereby appropriated (out of any money in the Treasury 
not otherwise appropriated) for each fiscal year to each 
fund under the Social Security Act or the Railroad Retire-
ment Act of 1974 an amount equal to the reduction in 
the transfers to such fund for such fiscal year by reason 
of the amendments made by this section.
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