I
107TH CONGRESS
1ST SESSION
H. R. 2548
To amend the Internal Revenue Code of 1986 to repeal the 1993 increase
in income taxes on social security benefits.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 2001
Mr. DOOLITTLE 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 1993 increase in income taxes on social security benefits.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REPEAL OF 1993 INCREASE IN TAX ON SOCIAL
SECURITY BENEFITS.
(a) IN GENERAL.—Paragraph (2) of section 86(a) of
the Internal Revenue Code of 1986 (relating to social se-
curity and tier 1 railroad retirement benefits) is amended
by adding at the end the following new sentence:
‘‘This paragraph shall not apply to any taxable year
beginning after December 31, 2000.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 871(a) of such
Code is amended by striking ‘‘85 percent’’ in sub-
paragraph (A) and inserting ‘‘50 percent’’.
(2)(A) Subparagraph (A) of section 121(e)(1)
of the Social Security Amendments of 1983 (Public
Law 98–21) is amended—
(i) by striking ‘‘(A) There’’ and inserting
‘‘There’’;
(ii) by striking ‘‘(i)’’ immediately following
‘‘amounts equivalent to’’; and
(iii) by striking ‘‘, less (ii)’’ and all that
follows and inserting a period.
(B) Paragraph (1) of section 121(e) of such Act
is amended by striking subparagraph (B).
(C) Paragraph (3) of section 121(e) of such Act
is amended by striking subparagraph (B) and by re-
designating subparagraph (C) as subparagraph (B).
(D) Paragraph (2) of section 121(e) of such
Act is amended in the first sentence by striking
‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (1)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
(d) REBATE
OF 2000 TAXES ATTRIBUTABLE
TO
1993 INCREASE.—
(1) IN GENERAL.—Subchapter B of chapter 65
of such Code (relating to abatements, credits, and
refunds) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 6429. REBATE OF 2000 TAXES ATTRIBUTABLE TO 1993
INCREASE IN TAX ON SOCIAL SECURITY BEN-
EFITS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this subtitle for the taxpayer’s first taxable year begin-
ning in 2001 an amount equal to the amount by which
the tax imposed by chapter 1 for the taxpayer’s first tax-
able year beginning in 2000 would be reduced if paragraph
(2) of section 86(a) had not applied for such taxable year.
‘‘(b) COORDINATION WITH ADVANCE REFUNDS OF
CREDIT.—
‘‘(1) IN
GENERAL.—The amount of credit
which would (but for this paragraph) be allowable
under this section shall be reduced (but not below
zero) by the aggregate refunds and credits made or
allowed to the taxpayer under subsection (d). Any
failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and
assessed according to section 6213(b)(1).
‘‘(2) JOINT RETURNS.—In the case of a refund
or credit made or allowed under subsection (d) with
respect to a joint return, such refund or credit shall
be treated as having been made or allowed to each
individual filing such return in proportion to their
respective amounts of social security benefits (as de-
fined in section 86(d)) received during the tax-
payer’s first taxable year beginning in 2000.
‘‘(c) COORDINATION WITH ESTIMATED TAX.—The
credit under this section shall be treated for purposes of
section 6654(f ) in the same manner as a credit under sub-
part A of part IV of subchapter A of chapter 1.
‘‘(d) ADVANCE REFUNDS OF CREDIT.—
‘‘(1) IN
GENERAL.—Each individual shall be
treated as having made a payment against the tax
imposed by chapter 1 for such individual’s first tax-
able year beginning in 2000 in an amount equal to
the advance refund amount for such taxable year.
‘‘(2) ADVANCE
REFUND
AMOUNT.—For pur-
poses of paragraph (1), the advance refund amount
is the amount that would have been allowed as a
credit under this section for such first taxable year
if this section (other than subsection (b) and this
subsection) had applied to such taxable year.
‘‘(3) TIMING
OF
PAYMENTS.—In the case of
any overpayment attributable to this subsection, the
Secretary shall, subject to the provisions of this title,
refund or credit such overpayment as rapidly as pos-
sible and, to the extent practicable, before October
1, 2001. No refund or credit shall be made or al-
lowed under this subsection after December 31,
2001.
‘‘(4) NO INTEREST.—No interest shall be al-
lowed on any overpayment attributable to this sub-
section.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 is amended by
adding at the end the following new item:
‘‘Sec. 6429. Rebate of 2000 taxes attributable to 1993 increase
in tax on social security benefits.’’.
Æ