[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4414 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4414

To amend the Internal Revenue Code of 1986 to repeal the 1993 increase 
                 in taxes on Social Security benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1998

 Mr. Neumann introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committee on the 
 Budget, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to repeal the 1993 increase 
                 in taxes on Social Security 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 ``Repeal the Social Security Tax 
Increase Act''.

SEC. 2. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY BENEFITS.

    (a) In General.--Paragraph (2) of section 86(a) of the Internal 
Revenue Code of 1986 (relating to social security and tier 1 railroad 
retirement benefits) is amended by adding at the end the following new 
sentence:
        ``This paragraph shall not apply to any taxable year beginning 
        after December 31, 1998.''
    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 871(a) of such Code is amended 
        by striking ``85 percent'' in subparagraph (A) and inserting 
        ``50 percent''.
            (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
        Security Amendments of 1983 (Public Law 98-21) is amended--
                    (i) by striking ``(A) There'' and inserting 
                ``There'';
                    (ii) by striking ``(i)'' immediately following 
                ``amounts equivalent to''; and
                    (iii) by striking ``, less (ii)'' and all that 
                follows and inserting a period.
            (B) Paragraph (1) of section 121(e) of such Act is amended 
        by striking subparagraph (B).
            (C) Paragraph (3) of section 121(e) of such Act is amended 
        by striking subparagraph (B) and by redesignating subparagraph 
        (C) as subparagraph (B).
            (D) Paragraph (2) of section 121(e) of such Act is amended 
        in the first sentence by striking ``paragraph (1)(A)'' and 
        inserting ``paragraph (1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 3. OFFSET THROUGH REDUCTIONS IN DISCRETIONARY SPENDING LIMITS; 
              APPROPRIATIONS AUTHORIZED FOR FEDERAL HOSPITAL INSURANCE 
              TRUST FUND.

    (a) Reduction in Discretionary Spending Limits.--Whenever the 
Director of the Office of Management and Budget estimates this 
legislation under section 252(d)(2) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, the Director shall decrease the 
adjusted discretionary spending limits set forth in section 251(c) of 
such Act for budget authority and outlays--
            (1) for fiscal year 1999 for the nondefense category by 
        $4.5 billion;
            (2) for fiscal year 2000 for the discretionary category by 
        $8.3 billion;
            (3) for fiscal year 2001 for the discretionary category by 
        $8.8 billion; and
            (4) for fiscal year 2002 for the discretionary category by 
        $9.1 billion.
    (b) Authorization of Appropriation of Equivalent of Tax Reduction 
to Federal Hospital Insurance Trust Fund.--For each of the fiscal years 
specified in subsection (a), there is hereby authorized to be 
appropriated to the Federal Hospital Insurance Trust Fund established 
by section 1817 of the Social Security Act an amount equal to the 
amount by which the adjusted discretionary spending limit is reduced 
under subsection (a) for such fiscal year.
    (c) Effect on Paygo Scorecard.--For purposes of section 252(b) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, an 
amount equal to the decrease in the discretionary spending limit for 
outlays for each such fiscal year pursuant to subsection (a) shall be 
treated as direct spending legislation decreasing the deficit for that 
fiscal year.
                                 <all>