I
105TH CONGRESS
2D SESSION
H. R. 4414
To amend the Internal Revenue Code of 1986 to repeal the 1993 increase
in taxes on Social Security benefits.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 5, 1998
Mr. NEUMANN introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the 1993 increase in 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. SHORT TITLE.
This Act may be cited as the ‘‘Repeal the Social Secu-
rity Tax Increase Act’’.
SEC. 2. REPEAL OF 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, 1998.’’
(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, 1998.
SEC. 
3. 
OFFSET 
THROUGH 
REDUCTIONS 
IN 
DISCRE-
TIONARY 
SPENDING 
LIMITS; 
APPROPRIA-
TIONS AUTHORIZED FOR FEDERAL HOSPITAL
INSURANCE TRUST FUND.
(a) REDUCTION IN DISCRETIONARY SPENDING LIM-
ITS.—Whenever the Director of the Office of Management
and Budget estimates this legislation under section
252(d)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985, the Director shall decrease the ad-
justed discretionary spending limits set forth in section
251(c) of such Act for budget authority and outlays—
(1) for fiscal year 1999 for the nondefense cat-
egory by $4.5 billion;
(2) for fiscal year 2000 for the discretionary
category by $8.3 billion;
(3) for fiscal year 2001 for the discretionary
category by $8.8 billion; and
(4) for fiscal year 2002 for the discretionary
category by $9.1 billion.
(b) AUTHORIZATION OF APPROPRIATION OF EQUIVA-
LENT OF TAX REDUCTION TO FEDERAL HOSPITAL IN-
SURANCE TRUST FUND.—For each of the fiscal years
specified in subsection (a), there is hereby authorized to
be appropriated to the Federal Hospital Insurance Trust
Fund established by section 1817 of the Social Security
Act an amount equal to the amount by which the adjusted
discretionary spending limit is reduced under subsection
(a) for such fiscal year.
(c) EFFECT ON PAYGO SCORECARD.—For purposes
of section 252(b) of the Balanced Budget and Emergency
Deficit Control Act of 1985, an amount equal to the de-
crease in the discretionary spending limit for outlays for
each such fiscal year pursuant to subsection (a) shall be
treated as direct spending legislation decreasing the deficit
for that fiscal year.
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