[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2106 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2106

 To amend the Internal Revenue Code of 1986 to increase the amount of 
        Social Security benefits which are exempt from taxation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 2001

  Mr. Larson of Connecticut 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 increase the amount of 
        Social Security benefits which are exempt from taxation.

    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 ``Social Security Benefits Tax Relief 
Act of 2001''.

SEC. 2. INCREASE IN ADJUSTED BASE AMOUNT CONTINGENT ON AVAILABILITY OF 
              BUDGET SURPLUSES.

    (a) In General.--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 subsection:
    ``(g) Increase in Adjusted Base Amount Contingent on Availability 
of Budget Surpluses.--
            ``(1) In general.--For any taxable year beginning after 
        December 31, 2001, subsection (c)(2) shall be applied--
                    ``(A) by substituting `$80,000' for `$34,000' in 
                subparagraph (A) thereof, and
                    ``(B) by substituting `$100,000' for `$44,000' in 
                subparagraph (B) thereof.
            ``(2) Contingency.--
                    ``(A) In general.--Paragraph (1) shall apply to 
                taxable years beginning in any calendar year only if 
                the Secretary of the Treasury certifies (before the 
                close of such calendar year) that the condition 
                specified in subparagraph (B) is met with respect to 
                such calendar year.
                    ``(B) Condition.--The condition specified in this 
                subparagraph is met for any calendar year if the 
                projected on-budget surplus for the fiscal year 
                beginning in such calendar year (determined by 
                excluding the receipts and disbursements of part A of 
                the medicare program) is greater than the projected 
                appropriations that would be required by section 3 of 
                the Social Security Benefits Tax Relief Act of 2001 for 
                such fiscal year if paragraph (1) had been in effect 
                for all taxable years after 2001.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL INSURANCE TRUST FUND.

    (a) In General.--There are hereby appropriated to the Hospital 
Insurance Trust Fund established under section 1817 of the Social 
Security Act amounts equal to the reduction in revenues to the Treasury 
by reason of the enactment of this Act. Amounts appropriated by the 
preceding sentence shall be transferred from the general fund at such 
times and in such manner as to replicate to the extent possible the 
transfers which would have occurred to such Trust Fund had this Act not 
been enacted.
    (b) Reports.--The Secretary of the Treasury or the Secretary's 
delegate shall annually report to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
the amounts and timing of the transfers under this section.
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