I 
109TH CONGRESS 
1ST SESSION H. R. 3078 
To amend the Internal Revenue Code of 1986 to waive the employee portion 
of Social Security taxes imposed on individuals who have been diagnosed 
as having cancer or a terminal disease. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2005 
Mr. PAUL (for himself and Mr. MILLER of Florida) 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 waive 
the employee portion of Social Security taxes imposed 
on individuals who have been diagnosed as having cancer 
or a terminal disease. 
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 ‘‘Cancer and Terminal 
Illness Patient Health Care Act of 2005’’.
SEC. 2. WAIVER OF EMPLOYEE PORTION OF SOCIAL SECU-
RITY TAXES ON INDIVIDUALS DIAGNOSED AS 
HAVING CANCER OR A TERMINAL DISEASE. 
(a) EMPLOYEES.—Section 3101 of the Internal Rev-
enue Code of 1986 (relating to tax on employees) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) EXCEPTION FOR EMPLOYEES WITH CANCER OR 
TERMINAL DISEASE.—No tax shall be imposed by this 
section on wages paid to an individual for any period for 
whom a certification by a physician (as defined in section 
1861(r)(1) of the Social Security Act (42 U.S.C. 
1395x(r)(1)) is in effect stating that— 
‘‘(1) the individual has a terminal disease, 
‘‘(2) the individual has cancer and whether or 
not such cancer is in remission, or 
‘‘(3) the individual is the primary caregiver for 
a spouse, parent, or child with a terminal disease or 
cancer (whether or not such cancer is in remission). 
The preceding sentence shall apply in the case of a certifi-
cation that an individual’s cancer is in remission only dur-
ing the period that the individual certifies to the employer 
that the individual is incurring significant costs (not reim-
bursed by insurance or otherwise) by reason of such can-
cer.’’.
(b) COMPARABLE TREATMENT FOR SELF-EMPLOYED 
INDIVIDUALS.—Section 1401 of such Code is amended by 
adding at the end the following new subsection: 
‘‘(d) REDUCTION IN TAX FOR SELF-EMPLOYED INDI-
VIDUALS WITH CANCER OR TERMINAL DISEASE.— 
‘‘(1) IN GENERAL.—Each of the rates of tax 
under subsections (a) and (b) shall be reduced by 50 
percent in the case of an individual for whom a cer-
tification by a physician (as defined in section 
1861(r)(1) of the Social Security Act (42 U.S.C. 
1395x(r)(1)) is in effect throughout the taxable year 
stating that— 
‘‘(A) the individual has a terminal disease, 
‘‘(B) the individual has cancer and whether 
or not such cancer is in remission, or 
‘‘(C) the individual is the primary care-
giver for a spouse, parent, or child with a ter-
minal disease or cancer (whether or not such 
cancer is in remission). 
The preceding sentence shall apply in the case of a 
certification that an individual’s cancer is in remis-
sion only during the period that the individual is in-
curring significant costs (not reimbursed by insur-
ance or otherwise) by reason of such cancer.
‘‘(2) SPECIAL
RULE
WHERE
CERTIFICATE
IN 
EFFECT FOR ONLY PORTION OF YEAR.—If the cer-
tification referred to in paragraph (1) is in effect for 
only a portion of the taxable year, paragraph (1) 
shall be applied by substituting for ‘50 percent’ the 
number of percentage points which bears the same 
ratio to 50 as such portion bears to the entire tax-
able year.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act. 
(d) NO IMPACT ON SOCIAL SECURITY TRUST FUND 
DEPOSITS OR BENEFITS.—Nothing in the amendments 
made by this section shall be construed to affect the 
amount of deposits into any trust fund under the Social 
Security Act or the amount of benefits payable under such 
Act. 
Æ