[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2515 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2515

 To amend the Internal Revenue Code of 1986 to increase the amount of 
     Social Security benefits exempt from tax for single taxpayers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 24, 1998

   Mr. Reid introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the amount of 
     Social Security benefits exempt from tax for single taxpayers.

    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 Citizen Tax Reduction Act of 
1998''.

SEC. 2. INCREASE IN AMOUNT OF BENEFITS EXEMPT FROM TAX.

    (a) In General.--
            (1) Base amount increase.--Subsection (c)(1) of section 86 
        (relating to Social Security and tier 1 railroad retirement 
        benefits) is amended by striking subparagraphs (A) and (B) and 
        inserting the following new subparagraph:
                    ``(A) except as provided in subparagraph (B), 
                $32,000, and''.
            (2) Adjusted base amount increase.--Subsection (c)(2) of 
        section 86 of the Internal Revenue Code of 1986 is amended by 
        striking subparagraphs (A) and (B) and inserting the following 
        new subparagraph:
                    ``(A) except as provided in subparagraph (B), 
                $44,000, and''.
    (b) Clerical Amendments.--
            (1) Section 86(c)(1) of such Code is amended by 
        redesignating subparagraph (C) as subparagraph (B).
            (2) Section 86(c)(2) of such Code is amended by--
                    (A) redesignating subparagraph (C) as subparagraph 
                (B), and
                    (B) striking ``(1)(C)'' and inserting ``(1)(B)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SEC. 3. SOCIAL SECURITY TRUST FUNDS HELD HARMLESS.

    (a) In General.--Paragraph (1)(A) of section 121(e) of the Social 
Security Amendments of 1983 (Public Law 92-21) is amended by adding at 
the end the following: ``The tax liabilities described in clause (i) 
shall be determined without regard to the amendments made by the Senior 
Citizen Tax Reduction Act of 1998.''.
    (b) No Tax Increases.--It is the sense of the Congress that tax 
increases should not be used to provide the revenue necessary to carry 
out subsection (a).
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