[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1316 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1316

   To amend the Internal Revenue Code of 1986 to reduce employer and 
employee Social Security taxes to the extent there is a Federal budget 
                                surplus.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1999

  Mr. Dreier (for himself and Mr. Jefferson) 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 reduce employer and 
employee Social Security taxes to the extent there is a Federal budget 
                                surplus.

    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 ``Working Americans Gainful Employment 
(WAGE) Act''.

SEC. 2. FEDERAL BUDGET SURPLUSES DEDICATED TO REDUCTION OF SOCIAL 
              SECURITY TAXES.

    (a) In General.--Section 3101 of the Internal Revenue Code of 1986 
(relating to tax on employees under Federal Insurance Contributions 
Act) is amended by adding at the end the following new subsection:
    ``(d) Federal Budget Surpluses To Reduce Social Security Taxes.--
            ``(1) In general.--Not later than December 15 of 1999, and 
        each subsequent calendar year, the Secretary shall prescribe a 
        rate for the social security retirement taxes which shall apply 
        in lieu of the otherwise applicable rate to remuneration 
        received in the succeeding calendar year.
            ``(2) Method of determining rate.--
                    ``(A) In general.--The rate determined under this 
                paragraph for any calendar year shall be the rate 
                estimated by the Secretary to reduce revenues to the 
                United States during such year in an amount equal to 
                the Federal budget surplus for the fiscal year ending 
                during the preceding calendar year. Proper adjustments 
                shall be made in subsequent such estimates to the 
                extent prior estimates were in excess of or less than 
                the actual revenue reductions.
                    ``(B) Federal budget surplus.--For purposes of 
                subparagraph (A), the term `Federal budget surplus' 
                means, with respect to any fiscal year, the amount by 
                which total Federal revenues for such fiscal year 
                exceed total Federal budget outlays for such year. For 
                purposes of the preceding sentence--
                            ``(i) revenues from social security 
                        retirement taxes and the tax imposed by section 
                        1401(a) shall be included in total revenues, 
                        and
                            ``(ii) disbursements from any trust fund or 
                        account which are social security benefits (as 
                        defined in section 86(d)) shall be included in 
                        total Federal budget outlays.
            ``(3) Social security retirement taxes.--For purposes of 
        this subsection, the term `social security retirement taxes' 
        means the taxes imposed by--
                    ``(A) section 3101(a) (relating to OASDI tax on 
                employees),
                    ``(B) section 3111(a) (relating to OASDI tax on 
                employers), and
                    ``(C) sections 3201(a), 3211(a)(1), and 3221(a) 
                (relating to tier 1 railroad retirement taxes) to the 
                extent attributable to the rate applicable under 
                section 3101(a) or 3111(a).
            ``(4) Tax on self-employment income.--If the Secretary 
        prescribes a rate under paragraph (1) which applies to 
        remuneration received in any calendar year, the rate applicable 
        under section 1401(a) for taxable years beginning in such 
        calendar year shall be equal to twice the rate so prescribed 
        for such calendar year.
            ``(5) Deposits into social security trust funds, etc. 
        unaffected.--The determination of the amounts deposited into 
        any trust fund or account shall be made without regard to the 
        rates determined under this subsection.''
    (b) Cross References.--
            (1) Subsection (a) of section 1401 of such Code is amended 
        by adding at the end the following flush sentence:
``For potential reduction in the rate under this subsection, see 
section 3101(d).''
            (2) Subsection (a) of section 3111 of such Code is amended 
        by adding at the end the following flush sentence:
``For potential reduction in the rate under this subsection, see 
section 3101(d).''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 2. TREATMENT UNDER PAY-AS-YOU-GO PROCEDURES.

    Any change in budget authority, outlays, or receipts resulting from 
the provisions of (or amendments made by) this Act shall not be 
considered for purposes of calculating the deficit increase for any 
year under section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985.
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