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103D CONGRESS
1ST SESSION
H. R. 1413
To amend title II of the Social Security Act to eliminate the penalty imposed
on wage income earned by individuals who have attained retirement age.
IN THE HOUSE OF REPRESENTATIVES
MARCH 18, 1993
Mr. DREIER introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend title II of the Social Security Act to eliminate
the penalty imposed on wage income earned by individ-
uals who have attained retirement age.
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 ‘‘Fair Tax Relief for
Working Older Americans’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) no American should be unfairly discouraged
from working;
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(2) older Americans are currently severely pe-
nalized for attempting to continue to work past the
Federal retirement age;
(3) an older American that earns just $10,560
annually will face an effective Federal marginal tax
rate of 56 percent;
(4) continued American economic strength and
prosperity will require retaining our most experi-
enced and dependable workers;
(5) By eliminating the $200,000,000 adminis-
trative expense spent each year by the Social Secu-
rity Administration enforcing the earning penalties,
and encouraging more older Americans to continue
to work while productive, Federal revenues would be
increased by over $140,000,000, and a significant
increase in Social Security reserves would accrue as
well.
SEC. 3. REPEAL OF TAX PENALTY ON OLDER AMERICANS.
(a) Section 203 of the Social Security Act (42 U.S.C.
403) is amended—
(1) in paragraph (1) of subsection (c), para-
graphs (1)(A) and (2) of subsection (d), by striking
‘‘the age of seventy’’ and inserting ‘‘retirement age
(as defined in section 216(l))’’;
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(2) in subsection (f)(1)(B), by striking ‘‘age
seventy’’ and inserting ‘‘retirement age (as defined
in section 216(l))’’;
(3) in subsection (f)(3)—
(A) by striking ‘‘331⁄3 percent’’ and all
that follows through ‘‘multiplied by the number
of months in such year’’ and inserting ‘‘50 per-
cent of his earnings for such year in excess of
the product derived by multiplying the applica-
ble exempt amount as determined under para-
graph (8) by the number of months in such
year’’, and
(B) by striking ‘‘age 70’’ and inserting
‘‘retirement age (as defined in section 216(l))’’;
(4) in subsection (g)—
(A) by striking ‘‘attained age 70’’ and in-
serting ‘‘attained the age of retirement (as de-
fined in section 216(l))’’, and
(B) by striking ‘‘under age 70’’ and insert-
ing ‘‘under the age of retirement (as defined in
section 216(l))’’;
(5) in subsection (j)—
(A) by striking ‘‘age seventy’’ in the head-
ing and inserting ‘‘retirement age’’, and
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(B) by striking ‘‘seventy years of age’’ and
inserting ‘‘having attained retirement age (as
defined in section 216(l))’’.
SEC. 4. CONFORMING AND RELATED AMENDMENTS.
(a) Section 203 of the Social Security Act (42 U.S.C.
403(f)(8)(A)) is amended—
(1) in the last sentence of subsection (c), by
striking ‘‘nor shall any deduction’’ and all that fol-
lows and inserting ‘‘nor shall any deduction be made
under this subsection from any widow’s or widower’s
insurance benefit if the widow, surviving divorced
wife, widower, or surviving divorced husband in-
volved became entitled to such benefit prior to at-
taining age 60.’’;
(2) in subsection (f)(1) by striking clause (D)
and inserting the following ‘‘(D) for which such indi-
vidual is entitled to widow’s or widower’s insurance
benefits if such individual became so entitled prior
to attaining age 60, or’’;
(3) in subsection (f)(8)(A), by striking ‘‘the new
exempt amounts (separately stated for individuals
described in subparagraph (D) and for other individ-
uals which are to be applicable’’ and inserting ‘‘the
new exempt amount which is to be applicable’’;
(4) in subsection (f)(8)(B)—
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(A) by striking all that precedes clause (i)
and inserting the following:
‘‘(B) The exempt amount which is applicable
for each month of a particular taxable year shall be
whichever of the following is the larger—’’,
(B) in clause (i), by striking ‘‘correspond-
ing’’, and
(C) in the last sentence, by striking ‘‘an
exempt amount’’ and inserting ‘‘the exempt
amount’’;
(b) Section 203(f)(8)(D) of such Act (42 U.S.C.
403(f)(8)(D)) is repealed.
(c) Section 202(w)(2)(B)(ii) of such Act is amend-
ed—
(1) by striking ‘‘either’’; and
(2) by striking ‘‘or suffered deductions under
section 203(b) or 203(c) in amounts equal to the
amount of such benefit’’.
SEC. 5. EFFECTIVE DATE.
The amendments and repeals made by this Act shall
be effective with respect to taxable years ending after De-
cember 31, 1993.
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