[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1717 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1717

                 To provide for a payroll tax holiday.


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                   IN THE SENATE OF THE UNITED STATES

                           November 16, 2001

  Mr. Domenici (for himself, Mr. Bond, and Mr. Frist) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
                 To provide for a payroll tax holiday.

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

SECTION 1. PAYROLL TAX HOLIDAY.

    (a) In General.--Notwithstanding any other provision of law, the 
rate of tax with respect to remuneration received during the payroll 
tax holiday period shall be zero under sections 1401(a), 3101(a), and 
3111(a) of the Internal Revenue Code of 1986 and for purposes of 
determining the applicable percentage under section 3201(a), 
3211(a)(1), and 3221(a) of such Code.
    (b) Payroll Tax Holiday Period.--The term ``payroll tax holiday 
period'' means the period beginning after November 30, 2001, and ending 
before January 1, 2002.
    (c) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax holiday period in any manner the 
Secretary deems appropriate.
    (d) Transfer of Funds.--The Secretary of the Treasury shall 
transfer from the general revenues of the Federal Government an amount 
sufficient so as to ensure that the income and balances of the trust 
funds under section 201 of the Social Security Act and the Social 
Security Equivalent Benefit Account under section 15A of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231n-1) are not reduced as a result 
of the application of subsection (a).
    (e) Determination of Benefits.--In making any determination of 
benefits under title II of the Social Security Act, the Commissioner of 
Social Security shall disregard the effect of the payroll tax holiday 
period on any individual's earnings record.
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