I
105TH CONGRESS
1ST SESSION
H. R. 2933
To amend the Internal Revenue Code of 1986 to reduce employer and
employee Social Security taxes to the extent there is a Federal budget surplus.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 8, 1997
Mr. DREIER (for himself and Mr. JEFFERSON) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on the Budget for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to reduce
employer and employee Social Security taxes to the ex-
tent there is a Federal budget surplus.
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 ‘‘Working Americans
Gainful Employment (WAGE) Act’’.
SEC. 2. FEDERAL BUDGET SURPLUSES DEDICATED TO RE-
DUCTION OF SOCIAL SECURITY TAXES.
(a) IN GENERAL.—Section 3101 of the Internal Rev-
enue Code of 1986 (relating to tax on employees under
Federal Insurance Contributions Act) is amended by add-
ing at the end the following new subsection:
‘‘(d) FEDERAL BUDGET SURPLUSES TO REDUCE SO-
CIAL SECURITY TAXES.—
‘‘(1) IN GENERAL.—Not later than December
15 of 1997, and each subsequent calendar year, the
Secretary shall prescribe a rate for the social secu-
rity retirement taxes which shall apply in lieu of the
otherwise applicable rate to remuneration received in
the succeeding calendar year.
‘‘(2) METHOD OF DETERMINING RATE.—
‘‘(A) IN GENERAL.—The rate determined
under this paragraph for any calendar year
shall be the rate estimated by the Secretary to
reduce revenues to the United States during
such year in an amount equal to the Federal
budget surplus for the fiscal year ending during
the preceding calendar year. Proper adjust-
ments shall be made in subsequent such esti-
mates to the extent prior estimates were in ex-
cess of or less than the actual revenue reduc-
tions.
‘‘(B) FEDERAL
BUDGET
SURPLUS.—For
purposes of subparagraph (A), the term ‘Fed-
eral budget surplus’ means, with respect to any
fiscal year, the amount by which total Federal
revenues for such fiscal year exceed total Fed-
eral budget outlays for such year. For purposes
of the preceding sentence—
‘‘(i) revenues from social security re-
tirement taxes and the tax imposed by sec-
tion 1401(a) shall be included in total rev-
enues, and
‘‘(ii) disbursements from any trust
fund or account which are social security
benefits (as defined in section 86(d)) shall
be included in total Federal budget out-
lays.
‘‘(3) SOCIAL SECURITY RETIREMENT TAXES.—
For purposes of this subsection, the term ‘social se-
curity retirement taxes’ means the taxes imposed
by—
‘‘(A) section 3101(a) (relating to OASDI
tax on employees),
‘‘(B) section 3111(a) (relating to OASDI
tax on employers), and
‘‘(C) sections 3201(a), 3211(a)(1), and
3221(a) (relating to tier 1 railroad retirement
taxes) to the extent attributable to the rate ap-
plicable under section 3101(a) or 3111(a).
‘‘(4) TAX ON SELF-EMPLOYMENT INCOME.—If
the Secretary prescribes a rate under paragraph (1)
which applies to remuneration received in any cal-
endar year, the rate applicable under section
1401(a) for taxable years beginning in such calendar
year shall be equal to twice the rate so prescribed
for such calendar year.
‘‘(5) DEPOSITS INTO SOCIAL SECURITY TRUST
FUNDS, ETC. UNAFFECTED.—The determination of
the amounts deposited into any trust fund or ac-
count shall be made without regard to the rates de-
termined under this subsection.’’
(b) CROSS REFERENCES.—
(1) Subsection (a) of section 1401 of such Code
is amended by adding at the end the following flush
sentence:
‘‘For potential reduction in the rate under this subsection,
see section 3101(d).’’
(2) Subsection (a) of section 3111 of such Code
is amended by adding at the end the following flush
sentence:
‘‘For potential reduction in the rate under this subsection,
see section 3101(d).’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 2. TREATMENT UNDER PAY-AS-YOU-GO PROCEDURES.
Any change in budget authority, outlays, or receipts
resulting from the provisions of (or amendments made by)
this Act shall not be considered for purposes of calculating
the deficit increase for any year under section 252 of the
Balanced Budget and Emergency Deficit Control Act of
1985.
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