[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4369 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4369

  To amend title II of the Social Security Act to provide for a more 
equitable formula for applying the earnings test during the first year 
              of an individual's entitlement to benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 1998

Mr. Canady of Florida 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 provide for a more 
equitable formula for applying the earnings test during the first year 
              of an individual's entitlement to benefits.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Earnings Test Grace 
Year Act of 1998''.

SEC. 2. MODIFICATION TO GRACE YEAR RULE IN APPLYING EARNINGS TEST TO 
              FIRST YEAR OF ENTITLEMENT.

    (a) In General.--Section 203(f)(1) of the Social Security Act (42 
U.S.C. 403(f)(1)) is amended--
            (1) in the first sentence, by inserting ``(A)'' before 
        ``The amount'';
            (2) in the second sentence, by striking ``Where an 
        individual'' and inserting the following:
            ``(B) Where an individual'';
            (3) in the third sentence--
                    (A) by redesignating clauses (i) and (ii) in clause 
                (E) as subclauses (I) and (II), respectively;
                    (B) by redesignating clauses (A) through (F) as 
                clauses (i) through (vi), respectively; and
                    (C) by striking ``Notwithstanding'' and inserting 
                the following:
            ``(C) Notwithstanding''; and
            (4) by adding at the end the following new subparagraph:
            ``(D) In any case in which an individual has excess 
        earnings for a taxable year but the first month of such taxable 
        year is not a month to which such excess earnings are 
        chargeable by reason of the application of subparagraph (C), in 
        determining excess earnings for such taxable year--
                    ``(i) earnings for any month in such taxable year 
                preceding the first month in such taxable year to which 
                such excess earnings are chargeable shall not be taken 
                into account, and
                    ``(ii) for purposes of the first sentence of 
                paragraph (3), and except as provided in the second 
                sentence thereof, the number of months in such taxable 
                year shall be deemed to be the number of months in such 
                taxable year beginning with or after such first 
                month.''.
    (b) Conforming Amendments.--
            (1) Section 203(f)(2) of such Act (42 U.S.C. 403(f)(2)) is 
        amended by striking ``clauses (A), (B), (C), (D), (E), and (F) 
        thereof'' and inserting ``subparagraph (C) thereof''.
            (2) Section 203(f)(5)(A) of such Act (42 U.S.C. 
        403(f)(5)(A)) is amended by striking ``An individual's'' and 
        inserting ``Subject to paragraph (1)(D), an individual's''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by section 2 shall apply with respect to 
taxable years beginning after the date of the enactment of this Act.
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