[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3438 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3438

      To repeal the 1993 tax increase on Social Security benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 17, 1999

Mr. Nadler (for himself and Mrs. Lowey) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
      To repeal the 1993 tax increase 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. 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 1999 and before 
        2004, 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 calendar year:
                                                     The percentage is:
                  2000...............................     75 percent   
                  2001...............................     65 percent   
                  2002...............................     60 percent   
                  2003...............................   55 percent.''  
    (b) Termination of Additional Amount.--Paragraph (2) of section 
86(a) 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, 2003.''
    (c) Conforming Amendments.--
            (1) Paragraph (3) of section 871(a) is amended--
                    (A) by striking ``85 percent'' in subparagraph (A) 
                and inserting ``50 percent'', and
                    (B) by inserting before the last sentence the 
                following new flush sentence:
        ``In the case of any taxable year beginning in a calendar year 
        after 1999 and before 2004, subparagraph (A) shall be applied 
        by substituting the percentage determined for such calendar 
        year under section 86(a)(3) for `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)''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 1999.
            (2) Subsection (c)(2).--The amendments made by subsection 
        (c)(2) shall apply to tax liabilities for taxable years 
        beginning after December 31, 1999.
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