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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Family Act of 2017''.

SEC. 2. ESTABLISHMENT OF FULLY REFUNDABLE CHILD TAX CREDIT.

    (a) Elimination of Existing Child Tax Credit.--Subpart A of part IV 
of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code 
of 1986 is amended by striking section 24.
    (b) Establishment of Fully Refundable Child Tax Credit.--Subpart C 
of part IV of subchapter A of chapter 1 of subtitle A of such Code is 
amended by inserting after section 36B the following new section:

``SEC. 36C. CHILD TAX CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of--
            ``(1) with respect to each qualifying child of the taxpayer 
        who has attained 6 years of age before the close of such 
        taxable year and for which the taxpayer is allowed a deduction 
        under section 151, an amount equal to $3,000, and
            ``(2) with respect to each qualifying child of the taxpayer 
        who has not attained 6 years of age before the close of such 
        taxable year and for which the taxpayer is allowed a deduction 
        under section 151, an amount equal to 120 percent of the dollar 
        amount in paragraph (1).
    ``(b) Limitation.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) shall be reduced (but not below zero) by the 
        applicable amount for each $1,000 (or fraction thereof) by 
        which the taxpayer's modified adjusted gross income exceeds the 
        threshold amount. For purposes of the preceding sentence, the 
        term `modified adjusted gross income' means adjusted gross 
        income increased by any amount excluded from gross income under 
        section 911, 931, or 933.
            ``(2) Threshold amount.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `threshold amount' means--
                            ``(i) $110,000 in the case of a joint 
                        return,
                            ``(ii) $75,000 in the case of an individual 
                        who is not married, and
                            ``(iii) $55,000 in the case of a married 
                        individual filing a separate return.
                    ``(B) Marital status.--For purposes of this 
                paragraph, marital status shall be determined under 
                section 7703.
            ``(3) Applicable amount.--For purposes of paragraph (1), 
        the term `applicable amount' means an amount equal to the 
        quotient of--
                    ``(A) the amount of the credit allowable under 
                subsection (a), as determined without regard to this 
                subsection, divided by
                    ``(B) an amount equal to the product of--
                            ``(i) $20, multiplied by
                            ``(ii) the total number of qualifying 
                        children of the taxpayer.
    ``(c) Qualifying Child.--
            ``(1) In general.--In this section, the term `qualifying 
        child' means a qualifying child of the taxpayer (as defined in 
        section 152(c)) who has not attained 19 years of age.
            ``(2) Exception for certain non-citizens.--The term 
        `qualifying child' shall not include any individual who would 
        not be a dependent if subparagraph (A) of section 152(b)(3) 
        were applied without regard to all that follows `resident of 
        the United States'.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2017, the $3,000 amount in subsection (a)(1) 
        shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins determined by substituting 
                `calendar year 2016' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $50, such increase shall be rounded to 
        the nearest multiple of $50.
    ``(e) Identification Requirements.--
            ``(1) Qualifying child identification requirement.--No 
        credit shall be allowed under this section to a taxpayer with 
        respect to any qualifying child unless the taxpayer includes 
        the name and taxpayer identification number of such qualifying 
        child on the return of tax for the taxable year and such 
        taxpayer identification number was issued on or before the due 
        date for filing such return.
            ``(2) Taxpayer identification requirement.--No credit shall 
        be allowed under this section if the identifying number of the 
        taxpayer was issued after the due date for filing the return 
        for the taxable year.
    ``(f) Taxable Year Must Be Full Taxable Year.--Except in the case 
of a taxable year closed by reason of the death of the taxpayer, no 
credit shall be allowable under this section in the case of a taxable 
year covering a period of less than 12 months.
    ``(g) Restrictions on Taxpayers Who Improperly Claimed Credit in 
Prior Year.--
            ``(1) Taxpayers making prior fraudulent or reckless 
        claims.--
                    ``(A) In general.--No credit shall be allowed under 
                this section for any taxable year in the disallowance 
                period.
                    ``(B) Disallowance period.--For purposes of 
                subparagraph (A), the disallowance period is--
                            ``(i) the period of 10 taxable years after 
                        the most recent taxable year for which there 
                        was a final determination that the taxpayer's 
                        claim of credit under this section was due to 
                        fraud, and
                            ``(ii) the period of 2 taxable years after 
                        the most recent taxable year for which there 
                        was a final determination that the taxpayer's 
                        claim of credit under this section was due to 
                        reckless or intentional disregard of rules and 
                        regulations (but not due to fraud).
            ``(2) Taxpayers making improper prior claims.--In the case 
        of a taxpayer who is denied credit under this section for any 
        taxable year as a result of the deficiency procedures under 
        subchapter B of chapter 63, no credit shall be allowed under 
        this section for any subsequent taxable year unless the 
        taxpayer provides such information as the Secretary may require 
        to demonstrate eligibility for such credit.
    ``(h) Reconciliation of Credit and Advance Credit.--
            ``(1) In general.--The amount of the credit allowed under 
        this section for any taxable year shall be reduced (but not 
        below zero) by the aggregate amount of any advance payments of 
        such credit under section 7527A for such taxable year.
            ``(2) Excess advance payments.--If the aggregate amount of 
        advance payments under section 7527A for the taxable year 
        exceed the amount of the credit allowed under this section for 
        such taxable year (determined without regard to paragraph (1)), 
        the tax imposed by this chapter for such taxable year shall be 
        increased by the amount of such excess''.
    (c) Advance Payment of Credit.--Chapter 77 of the Internal Revenue 
Code of 1986 is amended by inserting after section 7527 the following 
new section:

``SEC. 7527A. ADVANCE PAYMENT OF CHILD TAX CREDIT.

    ``(a) In General.--As soon as practicable and not later than 1 year 
after the date of the enactment of this section, the Secretary shall 
establish a program for making advance payments of the credit allowed 
under section 36C on a monthly basis (determined without regard to 
subsection (h)(1) of such section), or as frequently as the Secretary 
determines to be administratively feasible, to taxpayers allowed such 
credit.
    ``(b) Limitation.--
            ``(1) In general.--The Secretary may make payments under 
        subsection (a) only to the extent that the total amount of such 
        payments made to any taxpayer during the taxable year does not 
        exceed an amount equal to the excess, if any, of--
                    ``(A) subject to paragraph (2), the amount 
                determined under subsection (a) of section 36C with 
                respect to such taxpayer (determined without regard to 
                subsection (h) of such section) for such taxable year, 
                over
                    ``(B) the estimated tax imposed by subtitle A, as 
                reduced by the credits allowable under subparts A and C 
                (with the exception of section 36C) of such part IV, 
                with respect to such taxpayer for such taxable year, as 
                determined in such manner as the Secretary deems 
                appropriate.
            ``(2) Application of threshold amount limitation.--The 
        program described in subsection (a) shall make reasonable 
        efforts to apply the limitation of section 36C(b) with respect 
        to payments made under such program.''.
    (d) Conforming Amendments.--
            (1) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of subtitle A of the Internal Revenue 
        Code of 1986 is amended by striking the item relating to 
        section 24.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of subtitle A of such Code is amended 
        by inserting after the item relating to section 36B the 
        following:

``Sec. 36C. Child tax credit.''.
            (3) The table of sections for chapter 77 of such Code is 
        amended by inserting after the item relating to section 7527 
        the following new item:

``Sec. 7527A. Advance payment of child tax credit.''.
            (4) Subparagraph (B) of section 45R(f)(3) of such Code is 
        amended to read as follows:
                    ``(B) Special rule.--Any amounts paid pursuant to 
                an agreement under section 3121(l) (relating to 
                agreements entered into by American employers with 
                respect to foreign affiliates) which are equivalent to 
                the taxes referred to in subparagraph (A) shall be 
                treated as taxes referred to in such subparagraph.''.
            (5) Section 152(f)(6)(B)(ii) of such Code is amended by 
        striking ``section 24'' and inserting ``section 36C''.
            (6) Paragraph (26) of section 501(c) of such Code is 
        amended in the flush matter at the end by striking ``section 
        24(c))'' and inserting ``section 36C(c)) who has not attained 
        17 years of age''.
            (7) Section 6211(b)(4)(A) of such Code is amended--
                    (A) by striking ``24(d),'', and
                    (B) by inserting ``36C,'' after ``36B,''.
            (8) Section 6213(g)(2) of such Code is amended--
                    (A) in subparagraph (I), by striking ``section 
                24(e)'' and inserting ``section 36C(e)'', and
                    (B) in subparagraph (L), by striking ``24, or 32'' 
                and inserting ``32, or 36C''.
            (9) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``36C,'' after ``36B,''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
American Family Act of 2017  This bill amends the Internal Revenue Code, with respect to the child tax credit, to: (1) make the credit fully refundable, (2) increase the amount of the credit and allow an additional credit for children who are under six years of age, (3) require the amount of the credit to be adjusted annually for inflation after 2017, and (4) require the Department of the Treasury to establish a program for making advance payments of the credit on a monthly basis. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Local Policies for Schools 
Act of 2010'' or the ``HELP Schools Act of 2010''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) childhood obesity increased threefold among children 
        and adolescents in the 30 years preceding the date of enactment 
        of this Act;
            (2) about 12,000,000 children and adolescents ages 2 to 19 
        are considered obese;
            (3) obesity-related diseases cost the United States economy 
        more than $147,000,000,000 every year;
            (4) both low levels of physical activity and an increase in 
        caloric intake have contributed to the unprecedented epidemic 
        of childhood obesity;
            (5) overweight adolescents have a 70 to 80 percent chance 
        of becoming overweight adults, increasing the risk for chronic 
        disease, disability, and death;
            (6) children and adolescents are--
                    (A) not meeting dietary recommendations;
                    (B) underconsuming important food groups and 
                nutrients needed for growth and development; and
                    (C) overconsuming saturated fat, trans fat, sodium, 
                and added sugars;
            (7) nutrition education and promotion helps foster a school 
        environment that--
                    (A) supports healthy eating;
                    (B) helps initiate and sustain healthy eating 
                behaviors;
                    (C) increases acceptance and consumption of healthy 
                school meals;
                    (D) increases participation in school meal 
                programs;
                    (E) enhances school meal quality; and
                    (F) supports development and implementation of 
                local wellness policies;
            (8) nutrition education and promotion is a critical 
        component of most major health promotion and disease prevention 
        programs;
            (9) research shows that school-based nutrition programs and 
        services both improve health and contribute to the academic 
        achievement of school children;
            (10) research shows that fit children achieve more 
        academically and have better school attendance and fewer 
        disciplinary problems;
            (11) a comprehensive study of local wellness policies 
        across the United States found that--
                    (A) many policies were underdeveloped and 
                fragmented; and
                    (B) the vast majority of students were enrolled in 
                a school district that did not--
                            (i) require evaluation of the 
                        implementation or effectiveness of the wellness 
                        policy of the district; or
                            (ii) include any provisions for reviewing 
                        and revising the wellness policy;
            (12) the same study reported that between 5 and 6 percent 
        of students were enrolled in a school district that had 
        identified a potential source of funding to support 
        implementation of the wellness policy of the district;
            (13) the nutrition education and promotion initiatives for 
        school children in effect as of the date of enactment of this 
        Act lack coordination, funding, and sustainability;
            (14) the Physical Activity Guidelines for Americans of the 
        Department of Health and Human Services recommend that children 
        engage in at least 60 minutes of physical activity on most, and 
        preferably all, days of the week;
            (15) children spend many waking hours at school and 
        therefore need to be active during the school day to meet the 
        recommendations of the Physical Activity Guidelines for 
        Americans; and
            (16) as of the date of enactment of this Act--
                    (A) only 3.8 percent of elementary schools, 7.9 
                percent of middle schools, and 2.1 percent of high 
                schools provide daily physical education or the 
                equivalent for the entire school year; and
                    (B) 22 percent of schools do not require students 
                to take any physical education at all.

SEC. 3. LOCAL WELLNESS POLICIES.

    Section 5 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1754) is amended to read as follows:

``SEC. 5. LOCAL WELLNESS POLICIES.

    ``(a) Definitions.--In this section:
            ``(1) Extended school day.--The term `extended school day' 
        means--
                    ``(A) the official school day; and
                    ``(B) the time before and after the official school 
                day during which events or activities are primarily 
                under the control of the school or a third party on 
                behalf of the school.
            ``(2) Local wellness policy.--The term `local wellness 
        policy' means a nutrition and physical activity wellness policy 
        of a local educational agency established under section 204 of 
        the Child Nutrition and WIC Reauthorization Act of 2004 (42 
        U.S.C. 1751 note; Public Law 108-265).
    ``(b) Requirements.--Not later than the first day of the school 
year beginning 1 year after the date of enactment of the HELP Schools 
Act of 2010, each local educational agency participating in a program 
authorized by this Act or the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) shall strengthen the local school wellness policy of the 
local educational agency by ensuring, at a minimum, that the policy--
            ``(1) includes goals for nutrition promotion and education, 
        physical education, physical activity, food marketing and 
        advertising on the school campus, and other school-based 
        activities designed to promote participation in child nutrition 
        programs and student wellness through the extended school day, 
        in a manner that the local educational agency determines to be 
        appropriate;
            ``(2) includes an implementation plan to achieve the goals 
        of the local wellness policy;
            ``(3) ensures that guidelines for reimbursable school meals 
        are not less restrictive than regulations and guidance issued 
        by the Secretary pursuant to subsections (a) and (b) of section 
        10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) and 
        sections 9(f)(1) and 17(a) of this Act, as those regulations 
        and guidance apply to schools;
            ``(4) ensures that nutritional guidelines for foods and 
        beverages sold in schools that are not part of reimbursable 
        school meals are in compliance with the standards established 
        by the Secretary; and
            ``(5) includes a plan for measuring implementation of the 
        local wellness policy, including the designation of a local 
        wellness policy committee under subsection (d).
    ``(c) Transparency.--
            ``(1) In general.--In carrying out this section, each local 
        educational agency shall make readily available and widely 
        disseminate to relevant stakeholders--
                    ``(A) the local wellness policy of the local 
                education agency, including the implementation plan 
                described in subsection (b)(5);
                    ``(B) any assessments of the implementation of the 
                local wellness policy;
                    ``(C) any updates to the local wellness policy; and
                    ``(D) appropriate local and State contact 
                information.
            ``(2) Availability requirement.--Not later than the first 
        day of the school year following the date of enactment of the 
        HELP Schools Act of 2010, each local educational agency shall 
        make readily available the policy and plan described in 
        paragraph (1)(A).
            ``(3) Assessment of implementation.--
                    ``(A) Assessment of implementation.--Not later than 
                2 years after the date of enactment of the HELP Schools 
                Act of 2010, and every 3 years thereafter, each local 
                educational agency shall complete and make readily 
                available the results of an assessment of the 
                implementation of the local wellness policy of the 
                local educational agency that includes--
                            ``(i) the extent to which schools under the 
                        jurisdiction of the local educational agency 
                        are in compliance with the local wellness 
                        policy of the agency;
                            ``(ii) the extent to which the local 
                        wellness policy of the local educational agency 
                        compares with model local wellness policies 
                        recommended under subsection (e)(2)(A)(ii); and
                            ``(iii)(I) a description of the progress 
                        made in attaining the goals of the local 
                        wellness policy described in subsection (b); 
                        and
                            ``(II) any revisions to the local wellness 
                        policy to more effectively address those goals.
    ``(d) Local Wellness Policy Committee.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the HELP Schools Act of 2010, each local 
        educational agency shall designate a standing Local Wellness 
        Policy Committee (referred to in this subsection as the 
        `Committee').
            ``(2) Representation.--
                    ``(A) Required representatives.--The Committee of 
                each local educational agency shall be comprised of at 
                least 1 representative from the local educational 
                agency from each of the following categories of 
                stakeholders:
                            ``(i) Principals.
                            ``(ii) Teachers.
                            ``(iii) Parents of students.
                            ``(iv) Students.
                            ``(v) The school food authority.
                            ``(vi) The school board of the local 
                        educational agency.
                            ``(vii) The physical education program.
                            ``(viii) School health professionals, such 
                        as school nurses, school counselors, social 
                        workers, or health education teachers.
                    ``(B) Authorized representatives.--A Committee may 
                also include a registered dietitian, pediatrician, 
                dentist, a representative of the local health 
                department, or other representatives of the local 
                community.
            ``(3) Terms and conditions.--Each local educational agency 
        shall determine the terms and conditions under which each 
        member of the Committee of the local educational agency serves.
            ``(4) Duties.--Duties and responsibilities of each 
        Committee shall include--
                    ``(A) ensuring that the local educational agency 
                served by the Committee meets the requirements 
                described in this section;
                    ``(B) fostering integration of the local wellness 
                policy of the local educational agency with existing 
                coordinated school health programs, and other health-
                related activities in the schools and community served 
                by the local educational agency; and
                    ``(C) making Committee proceedings and other 
                pertinent information relating to the activities of the 
                Committee readily available.
    ``(e) Technical Assistance and Outreach.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Education and the Secretary of Health and Human 
        Services, acting through the Centers for Disease Control and 
        Prevention, shall assist in the adoption of effective local 
        wellness policies by local educational agencies in accordance 
        with this section.
            ``(2) Outreach.--In carrying out paragraph (1), the 
        Secretary shall perform outreach to key State and local 
        stakeholders to promote effective local wellness policies and 
        provide technical assistance that--
                    ``(A) includes--
                            ``(i) a hotline, online resources, and 
                        trainings on designing, implementing, 
                        promoting, disseminating, and evaluating local 
                        wellness policies and overcoming barriers to 
                        the adoption of local wellness policies; and
                            ``(ii) model local wellness policies and 
                        best practices recommended by Federal agencies, 
                        State agencies, and nongovernmental 
                        organizations; and
                    ``(B) is for guidance purposes only and not binding 
                or otherwise designed to be mandate to schools, local 
                educational agencies, school food authorities, or State 
                child nutrition programs.
            ``(3) Funding.--
                    ``(A) In general.--On October 1, 2010, and on each 
                October 1 thereafter through October 1, 2014, out of 
                any funds in the Treasury not otherwise appropriated, 
                the Secretary of the Treasury shall transfer to the 
                Secretary to carry out this paragraph $1,000,000, to 
                remain available until expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this paragraph the funds transferred under 
                subparagraph (A), without further appropriation. 
    ``(f) Study and Report.--
            ``(1) In general.--The Secretary, in conjunction with the 
        Director of the Centers for Disease Control and Prevention, 
        shall prepare a report on the implementation, strength, and 
        effectiveness of the local wellness policies carried out in 
        accordance with this section.
            ``(2) Study of local wellness policies.--The study 
        described in paragraph (1) shall include--
                    ``(A) an analysis of the strengths and weaknesses 
                of local wellness policies and how the policies compare 
                with model local wellness policies recommended under 
                subsection (e)(2)(A)(ii); and
                    ``(B) an assessment of the impact of the local 
                wellness policies in addressing the requirements of 
                subsection (b).
            ``(3) Report.--Not later than January 1, 2014, the 
        Secretary shall submit to the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate and the Committee on 
        Education and Labor of the House of Representatives a report 
        that describes the findings of the study.''.

SEC. 4. REPEAL.

    Section 204 of the Child Nutrition and WIC Reauthorization Act of 
2004 (42 U.S.C. 1751 note; Public Law 108-265) is repealed.

SEC. 5. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
Healthy Local Policies for Schools Act of 2010 or HELP Schools Act of 2010 - Amends the Richard B. Russell National School Lunch Act to replace the nutrition promotion program with a program that requires local educational agencies (LEAs) to ensure that their local wellness policies: (1) include goals for nutrition and physical education, physical activity, on-campus food marketing and advertising, and other school-based activities that promote nutrition and wellness throughout the extended school day; (2) include plans for implementing, and measuring the implementation of, such policies; (3) require reimbursable school meals to meet certain nutritional guidelines; and (4) require the nutritional guidelines for nonreimbursable foods and beverages sold in schools to be in compliance with standards established by the Secretary of Agriculture.

Requires each LEA, within two years of this Act's enactment and every three years thereafter, to complete and disseminate an assessment of their local wellness policy.

Directs each LEA to designate a standing Local Wellness Policy Committee made up of education, health, and nutrition stakeholders to foster the integration of a local wellness policy that meets this Act's requirements with other health-related activities in the LEA's schools and community.

Requires the Secretary to: (1) provide technical assistance and outreach to key state and local stakeholders to promote effective local wellness policies; and (2) prepare a report, in conjunction with the Director of the Centers for Disease Control and Prevention (CDC), on the implementation, strength, and effectiveness of local wellness policies.

That subsections (b), 
(d), (f), (h), (j), and (k) of section 203 of the Social Security Act 
are repealed.
    Sec. 2. (a) Subsection (c) of section 203 of the Social Security 
Act is redesignated as subsection (b); and such subsection as so 
redesignated is amended--
            (1) by striking out ``Noncovered Work Outside the United 
        States or'' in the heading;
            (2) by striking out paragraph (1);
            (3) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (1), (2), and (3), respectively;
            (4) by striking out ``For purposes of paragraphs (2), (3), 
        and (4)'' and inserting in lieu thereof ``For purposes of 
        paragraphs (1), (2), and (3)''; and
            (5) by striking out the last sentence.
    (b) Subsection (e) of such section 203 is redesignated as 
subsection (c); and such subsection as so redesignated is amended by 
striking out ``subsections (c) and (d)'' and inserting in lieu thereof 
``subsection (b)''.
    (c) Subsection (g) of such section 203 is redesignated as 
subsection (d); and such subsection as so redesignated is amended by 
striking out ``subsection (c)'' each place it appears and inserting in 
lieu thereof ``subsection (b)''.
    (d) Subsection (i) of such section 203 is redesignated as 
subsection (e); and such subsection as so redesignated is amended by 
striking out ``subsection (b), (c), (g), or (h)'' and inserting in lieu 
thereof ``subsection (b) or (d)''.
    (e) Subsection (l) of such section 203 is redesignated as 
subsection (f); and such subsection as so redesignated is amended by 
striking out ``subsection (g) or (h)(1)(A)'' and inserting in lieu 
thereof ``subsection (d)''.
    Sec. 3. (a) Section 202(j)(4)(B) of the Social Security Act is 
amended by striking out clause (iv), and by redesignating clause (v) as 
clause (iv).
    (b) Section 202(n)(1) of such Act is amended by striking out 
``Sections 203 (b), (c), and (d)'' and inserting in lieu thereof 
``Section 203(b)''.
    (c)(1) Section 202(q)(5)(B) of such Act is amended by striking out 
``section 203(c)(2)'' and inserting in lieu thereof ``section 
203(b)(1)''.
    (2) Section 202(q)(7)(A) of such Act is amended by striking out 
``deductions under section 203(b), 203(c)(1), 203(d)(1), or 222(b)'' 
and inserting in lieu thereof ``deductions on account of work under 
section 203 or deductions under section 222(b)''.
    (d)(1) Section 202(s)(1) of such Act is amended by striking out 
``paragraphs (2), (3), and (4) of section 203(c)'' and inserting in 
lieu thereof ``paragraphs (1), (2), and (3) of section 203(b)''.
    (2) Section 202(s)(3) of such Act is amended by striking out ``The 
last sentence of subsection (c) of section 203, subsection (f)(1)(C) of 
section 203, and subsections'' and inserting in lieu thereof 
``Subsections''.
    (e) Section 202(t)(7) of such Act is amended by striking out 
``Subsections (b), (c), and (d)'' and inserting in lieu thereof 
``Subsection (b)''.
    (f) Section 202(w)(2)(B)(ii) of such Act is amended to read as 
follows:
                            ``(ii) such individual (I) was not entitled 
                        to an old-age insurance benefit, (II) suffered 
                        deductions, in amounts equal to the amount of 
                        such benefit, under section 203(b) as in effect 
                        in the month or months involved, or (III) would 
                        have suffered deductions on account of work, in 
                        amounts equal to the amount of such benefit (as 
                        determined under regulations of the Secretary), 
                        under subsections (b) through (l) of section 
                        203 as in effect immediately prior to the 
                        enactment of this clause (III) if such 
                        subsections (other than paragraph (8) of 
                        subsection (f)) had remained in effect through 
                        such month or months.''.
    (g) Section 203(a)(3)(B)(iii) of such Act is amended by striking 
out ``and subsections (b), (c), and (d)'' and inserting in lieu thereof 
``and subsection (b)''.
    (h) Section 208(a)(3) of such Act is amended by striking out 
``under section 203(f) of this title for purposes of deductions from 
benefits'' and inserting in lieu thereof ``under section 203 for 
purposes of deductions from benefits on account of work''.
    (i) Clause (I) in the last sentence of section 215(b)(2)(A) of such 
Act is amended by striking out ``no earnings as described in section 
203(f)(5) in such year'' and inserting in lieu thereof ``no wages, and 
no net earnings from self-employment (in excess of net loss from self-
employment), in such year''.
    (j) Section 215(g) of such Act is amended by striking out ``and any 
deduction under section 203(b)''.
    (k) The third sentence of section 223(d)(4) of such Act is amended 
by striking out ``the exempt amount under section 203(f)(8) which is 
applicable to individuals described in subparagraph (D) thereof'' and 
inserting in lieu thereof the following: ``an amount equal to the 
exempt amount which would have been applicable under section 203(f)(8), 
to individuals described in subparagraph (D) thereof, if subsections 
(b) through (l) of section 203 as in effect in December 1984 had 
remained in effect through the month in which such earnings were 
derived''.
    (l) Section 1612(a) of such Act is amended--
            (1) by striking out ``as determined under section 
        203(f)(5)(C)'' in paragraph (1)(A) and inserting in lieu 
        thereof ``as defined in the last sentence of this subsection'', 
        and
            (2) by adding at the end thereof the following new 
        sentence: ``For purposes of paragraph (1)(A), the term 
        ``wages'' means wages as defined in section 209, but computed 
        without regard to the limitations as to amounts of remuneration 
        specified in subsections (a), (g)(2), (g)(3), (h)(2), and (j) 
        of such section; and in making such computation services which 
        do not constitute employment as defined in section 210, 
        performed within the United States by an individual as an 
        employee or performed outside the United States in the active 
        military or naval service of the United States, shall be deemed 
        to be employment as so defined if the remuneration for such 
        services is not includible in computing the individual's net 
        earnings or net loss from self-employment for purposes of title 
        II; but such term does not include (i) the amount of any 
        payment made to or on behalf of an employee or any of his 
        dependents (including any amount paid by an employer for 
        insurance or annuities, or into a fund, to provide for any such 
        payment) on account of retirement, or (ii) any payment or 
        series of payments by an employer to an employee or any of his 
        dependents upon or after the termination of the employee's 
        employment relationship because of retirement after attaining 
        an age specified in a plan referred to in section 209(m)(2) or 
        in a pension plan of the employer.''.
    (m) Section 2 of the Railroad Retirement Act of 1974 is amended by 
striking out subsections (f) and (g)(2).
    Sec. 4. The amendments and repeals made by this Act shall be 
effective with respect to taxable years ending on and after the date of 
the enactment of this Act.

Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to remove the limitation on the amount of outside income which a beneficiary may earn without incurring a reduction in benefits.