[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5064 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5064

To amend the Internal Revenue Code of 1986 to allow employees and self-
   employed individuals to deduct taxes paid for social security and 
                               medicare.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

 Mr. McCrery 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 allow employees and self-
   employed individuals to deduct taxes paid for Social Security and 
                               Medicare.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION ALLOWED FOR TAXES PAID BY EMPLOYEES UNDER THE 
              FEDERAL INSURANCE CONTRIBUTIONS ACT AND ANALOGOUS TAXES 
              UNDER THE RAILROAD RETIREMENT TAX ACT.

    (a) In General.--Subsection (f) of section 164 of the Internal 
Revenue Code of 1986 (relating to deduction for one-half of self-
employment taxes) is amended to read as follows:
    ``(f) Deduction for Taxes Paid by Employees and Self-Employed 
Individuals.--In the case of an individual, in addition to the taxes 
described in subsection (a), there shall be allowed as a deduction for 
the taxable year an amount equal to--
            ``(1) the taxes imposed by section 3101 (relating to tax on 
        employees under the Federal Insurance Contributions Act) and 
        the taxes imposed by sections 3201(a) and 3211(a)(1) (relating 
        to the taxes on railroad employees and railroad employee 
        representatives) for such taxable year, and
            ``(2) in the case of a self-employed individual (within the 
        meaning of section 401(c)), the taxes imposed by section 1401 
        for such taxable year.
For purposes of this chapter, one-half of the deduction allowed by 
paragraph (2) shall be treated as attributable to a trade or business 
carried on by the taxpayer which does not consist of the performance of 
services by the taxpayer as an employee.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (17) the following new paragraph:
            ``(18) Social security and medicare taxes.--The deduction 
        allowed by section 164(f).''.
    (c) Conforming Amendment.--Paragraph (1) of section 275(a) of the 
Internal Revenue Code of 1986 (relating to certain taxes not 
deductible) is amended to read as follows:
            ``(1) Federal income taxes, including--
                    ``(A) the taxes imposed by sections 3201(b) and 
                3211(a)(2) (relating to the taxes on railroad employees 
                and railroad employee representatives); and
                    ``(B) the tax withheld at source on wages under 
                section 3402.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
                                 <all>