[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1775 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1775

     To amend the Internal Revenue Code of 1986 to provide for the 
restoration of the prior law formula for the inclusion in gross income 
      of social security and tier 1 railroad retirement benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 1995

   Mr. Nadler (for himself, Mr. Engel, Mrs. Maloney, and Mrs. Lowey) 
 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 provide for the 
restoration of the prior law formula for the inclusion in gross income 
      of social security and tier 1 railroad retirement benefits.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RESTORATION OF PRIOR LAW FORMULA FOR INCLUSION IN GROSS 
              INCOME OF SOCIAL SECURITY AND TIER 1 RAILROAD RETIREMENT 
              BENEFITS.
    (a) Restoration of Prior Law Inclusion Formula.--Subsection (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) (notwithstanding 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 received 
        during the taxable year, or
            ``(2) one-half of the excess described in subsection 
        (b)(1).''
    (b) Repeal of Adjusted Base Amount.--Subsection (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 subsection, 
        $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 Amendment.--Subparagraph (A) of section 871(a)(3) of 
such Code is amended by striking ``85 percent'' and inserting ``50 
percent''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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