[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 286 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 286

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1999

  Mr. McCain 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 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' Equity 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 1998 and before 
        2003, 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:
                1999.................................       75 percent 
                2000.................................       65 percent 
                2001.................................       60 percent 
                2002.................................     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, 2002.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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