[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1575 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1575

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
social security taxes imposed on wages paid for dependent care services 
                              in the home.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 31, 1993

 Mrs. Maloney 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 allow a deduction for 
social security taxes imposed on wages paid for dependent care services 
                              in the home.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR CERTAIN SOCIAL SECURITY TAXES.

    (a) General Rule.--Section 164 of the Internal Revenue Code of 1986 
(relating to deduction for taxes) is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection (f) 
the following new subsection:
    ``(g) Deduction for Certain Social Security Taxes.--
            ``(1) In general.--In the case of an individual, in 
        addition to the taxes described in subsection (a), there shall 
        be allowed as a deduction for the taxable year an amount equal 
        to the dependent-care provider social security taxes paid by 
        the taxpayer during the taxable year.
            ``(2) Dependent-care provider social security taxes.--For 
        purposes of paragraph (1), the term `dependent-care provider 
        social security taxes' means any taxes--
                    ``(A) which are imposed by section 3111 on wages 
                paid by the taxpayer for domestic services in the 
                private home of the taxpayer,
                    ``(B) the payment of which by the taxpayer qualify 
                as employment-related expenses under section 21(b), and
                    ``(C) which the taxpayer elects to take into 
                account under this subsection.
            ``(3) Dependent-care credit not allowed for deducted 
        taxes.--Any dependent-care provider social security taxes 
        allowed as a deduction under this subsection shall not be taken 
        into account in determining the amount of the credit allowed 
        under section 21(a).''
    (b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 (defining adjusted gross income) is 
amended by inserting after paragraph (14) the following new paragraph:
            ``(15) Deduction for certain social security taxes.--The 
        deduction allowed by section 164(g).''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

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