[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 493 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 493

   To amend the Internal Revenue Code of 1986 to allow individuals a 
        refundable credit against income tax for payroll taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 7, 2001

   Mr. Barrett of Wisconsin 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 individuals a 
        refundable credit against income tax for payroll taxes.

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

SECTION 1. REFUNDABLE CREDIT FOR PAYROLL TAXES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. CREDIT FOR PAYROLL TAXES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle an amount 
equal to the taxpayer's social security taxes for the taxable year.
    ``(b) Limitation.--The amount of the credit allowable under 
subsection (a) to any taxpayer for any taxable year shall not exceed 
$300 ($600 in the case of a joint return).
    ``(c) Social Security Taxes.--For purposes of this section--
            ``(1) In general.--The term `social security taxes' means, 
        with respect to any taxpayer for any taxable year--
                    ``(A) the amount of the taxes imposed by 
                subsections (a) and (b) of section 3101 on amounts 
                received by the taxpayer during the calendar year in 
                which the taxable year begins,
                    ``(B) the amount of the taxes imposed by section 
                3201(a) on amounts received by the taxpayer during the 
                calendar year in which the taxable year begins,
                    ``(C) 50 percent of the taxes imposed by 
                subsections (a) and (b) of section 1401 on the self-
                employment income of the taxpayer for the taxable year, 
                and
                    ``(D) 50 percent of the taxes imposed by section 
                3211(a)(1) on amounts received by the taxpayer during 
                the calendar year in which the taxable year begins.
            ``(2) Coordination with special refund of social security 
        taxes.--The term `social security taxes' shall not include any 
        taxes to the extent the taxpayer is entitled to a special 
        refund of such taxes under section 6413(c).
            ``(3) Special rule.--Any amounts paid pursuant to an 
        agreement under section 3121(l) (relating to agreements entered 
        into by American employers with respect to foreign affiliates) 
        which are equivalent to the taxes referred to in paragraph 
        (1)(A) shall be treated as taxes referred to in such 
        paragraph.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 35. Credit for payroll taxes.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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