IB
Union Calendar No. 447
106TH CONGRESS
2D SESSION
H. R. 4865
[Report No. 106–780]
To amend the Internal Revenue Code of 1986 to repeal the 1993 income
tax increase on Social Security benefits.
IN THE HOUSE OF REPRESENTATIVES
JULY 17, 2000
Mr. ARCHER (for himself and Mr. SHAW) introduced the following bill; which
was referred to the Committee on Ways and Means
JULY 24, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on July 17, 2000]
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the 1993 income tax increase 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 ‘‘Social Security Benefits
Tax Relief Act of 2000’’.
SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL
SECURITY BENEFITS.
(a) RESTORATION OF PRIOR LAW FORMULA.—Sub-
section (a) of section 86 of the Internal Revenue Code of
1986 is amended to read as follows:
‘‘(a) IN GENERAL.—Gross income for the taxable year
of any taxpayer described in subsection (b) (notwith-
standing section 207 of the Social Security Act) includes
social security benefits in an amount equal to the lesser of—
‘‘(1) one-half of the social security benefits re-
ceived during the taxable year, or
‘‘(2) one-half of the excess described in subsection
(b)(1).’’
(b) REPEAL
OF ADJUSTED BASE AMOUNT.—Sub-
section (c) of section 86 of such Code is amended to read
as follows:
‘‘(c) BASE AMOUNT.—For purposes of this section, the
term ‘base amount’ means—
‘‘(1) except as otherwise provided in this sub-
section, $25,000,
‘‘(2) $32,000 in the case of a joint return, and
‘‘(3) zero in the case of a taxpayer who—
‘‘(A) is married as of the close of the taxable
year (within the meaning of section 7703) but
does not file a joint return for such year, and
‘‘(B) does not live apart from his spouse at
all times during the taxable year.’’
(c) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 871(a)(3) of
such Code is amended by striking ‘‘85 percent’’ 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 ‘‘para-
graph (1)(A)’’ and inserting ‘‘paragraph (1)’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as otherwise provided
in this subsection, the amendments made by this sec-
tion shall apply to taxable years beginning after De-
cember 31, 2000.
(2) SUBSECTION (c)(1).—The amendment made
by subsection (c)(1) shall apply to benefits paid after
December 31, 2000.
(3) SUBSECTION (c)(2).—The amendments made
by subsection (c)(2) shall apply to tax liabilities for
taxable years beginning after December 31, 2000.
SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL INSUR-
ANCE TRUST FUND.
(a) IN GENERAL.—There are hereby appropriated to
the Hospital Insurance Trust Fund established under sec-
tion 1817 of the Social Security Act amounts equal to the
reduction in revenues to the Treasury by reason of the en-
actment of this Act. Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent pos-
sible the transfers which would have occurred to such Trust
Fund had this Act not been enacted.
(b) REPORTS.—The Secretary of the Treasury or the
Secretary’s delegate shall annually report to the Committee
on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate the amounts and
timing of the transfers under this section.
Union Calendar No. 447
106TH CONGRESS
2D SESSION
H. R. 4865
[Report No. 106–780]
A BILL
To amend the Internal Revenue Code of 1986 to
repeal the 1993 income tax increase on Social
Security benefits.
JULY 24, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union
and ordered to be printed