[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 693 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 693

 To amend the Internal Revenue Code of 1986 to repeal the increase in 
                  the tax on social security benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1997

 Mrs. Johnson of Connecticut 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 repeal the increase in 
                  the tax 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 ``Senior Citizens' Tax Fairness Act''.

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

    (a) In General.--Subsection (a) of section 86 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 
paragraph:
            ``(3) Phaseout of additional amount.--In the case of any 
        taxable year beginning in a calendar year after 1996 and before 
        2001, paragraph (2) shall be applied by substituting the 
        percentage determined under the following table for `85 
        percent' each place it appears:

        ``In the case of a taxable
                                                                       
          year beginning in cal-
                                                                       
          endar year:
                                                     The percentage is:
                1997.................................       75 percent 
                1998.................................       65 percent 
                1999.................................       60 percent 
                2000.................................     55 percent.''
    (b) Termination of Additional Amount.--Paragraph (2) of section 
86(a) of such Code is amended by adding at the end the following new 
flush sentence:
        ``This paragraph shall not apply to any taxable year beginning 
        after December 31, 2000.''
    (c) Conforming Amendment.--Paragraph (3) of section 871(a) of such 
Code is amended--
            (1) by striking ``85 percent'' in subparagraph (A) and 
        inserting ``50 percent'', and
            (2) by inserting before the last sentence the following new 
        flush sentence:
        ``In the case of any taxable year beginning in a calendar year 
        after 1996 and before 2001, subparagraph (A) shall be applied 
        by substituting the percentage determined for such calendar 
        year under section 86(a)(3) for `50 percent'.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.
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