I 
113TH CONGRESS 
2D SESSION 
H. R. 5852 
To amend the Internal Revenue Code of 1986 to eliminate the $117,000 
cap on income subject to Social Security payroll taxes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2014 
Mr. GRAYSON 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 eliminate 
the $117,000 cap on income subject to Social Security 
payroll taxes. 
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 ‘‘Scrap the Cap Act’’. 
SEC. 2. PAYROLL TAX ON REMUNERATION. 
(a) IN GENERAL.—Paragraph (1) of section 3121(a) 
of the Internal Revenue Code of 1986 is amended by in-
serting after ‘‘such calendar year.’’ the following: ‘‘The 
preceding sentence shall apply only to calendar years for 
which the contribution and benefit base (as so determined) 
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is less than $117,000, and, for such calendar years, only 
to so much of the remuneration paid to such employee 
by such employer with respect to employment as does not 
exceed $117,000.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 3121 of the Internal Revenue Code of 1986 is 
amended by striking ‘‘Act) to’’ and inserting ‘‘Act), or in 
excess of $117,000, to’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to remuneration paid after Decem-
ber 31, 2014. 
SEC. 3. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT. 
(a) IN GENERAL.—Paragraph (1) of section 1402(b) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) in the case of the tax imposed by section 
1401(a), the excess of— 
‘‘(A) that part of the net earnings from 
self-employment which is in excess of— 
‘‘(i) an amount equal to the contribu-
tion and benefit base (as determined under 
section 230 of the Social Security Act) 
which is effective for the calendar year in 
which such taxable year begins, minus 
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‘‘(ii) the amount of the wages paid to 
such individual during such taxable years; 
over 
‘‘(B) that part of the net earnings from 
self-employment which is in excess of the sum 
of— 
‘‘(i) the excess of— 
‘‘(I) the net earning from self- 
employment reduced by the excess (if 
any) of subparagraph (A)(i) over sub-
paragraph (A)(ii), over 
‘‘(II) $117,000, reduced by such 
contribution and benefit base, plus 
‘‘(ii) the amount of the wages paid to 
such individual during such taxable year in 
excess of such contribution and benefit 
base and not in excess of $117,000; or’’. 
(b) PHASEOUT.—Subsection (b) of section 1402 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: ‘‘Paragraph (1) shall apply only 
to taxable years beginning in calendar years for which the 
contribution and benefit base (as determined under section 
230 of the Social Security Act) is less than $117,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to net earnings from self-employ-
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ment derived, and remuneration paid, after December 31, 
2014. 
Æ 
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