[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2472 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2472

   To amend the Internal Revenue Code of 1986 to impose a tax on the 
  amount of wages in excess of the contribution and benefit base, to 
    extend the pay-as-you-go requirement of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2005

  Mr. Wexler introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Rules, and the Budget, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to impose a tax on the 
  amount of wages in excess of the contribution and benefit base, to 
    extend the pay-as-you-go requirement of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, and for other purposes.

    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 Forever Act of 
2005''.

SEC. 2. TAX IMPOSED ON WAGES IN EXCESS OF CONTRIBUTION AND BENEFIT 
              BASE.

    (a) Tax on Employees.--Section 3101 of the Internal Revenue Code of 
1986 (relating to rate of tax) is amended by adding at the end the 
following new subsection:
    ``(d) Wages Received in Excess of Contribution and Benefit Base.--
In addition to the taxes imposed by subsections (a) and (b) and 
notwithstanding subsection (c), there is hereby imposed on the income 
of every individual a tax equal to 3 percent of the excess (if any) 
of--
            ``(1) the wages (as defined in section 3121(a)) received by 
        him with respect to employment (as defined in section 3121(b)) 
        during the calendar year, over
            ``(2) so much of such wages as does not exceed the 
        contribution and benefit base, as determined under section 230 
        of the Social Security Act for such calendar year.''.
    (b) Tax on Employers.--Section 3111 of such Code (relating to rate 
of tax) is amended by adding at the end the following new subsection:
    ``(d) Wages Paid in Excess of Contribution and Benefit Base.--In 
addition to the taxes imposed by subsections (a) and (b) and 
notwithstanding subsection (c), there is hereby imposed on every 
employer an excise tax, with respect to having individuals in his 
employ, equal to 3 percent of the excess (if any) of--
            ``(1) the wages (as defined in section 3121(a)) paid by him 
        with respect to employment (as defined in section 3121(b)) 
        during the calendar year, over
            ``(2) so much of such wages as does not exceed the 
        contribution and benefit base, as determined under section 230 
        of the Social Security Act for such calendar year.''.
    (c) Railroad Retirement.--
            (1) Tax on employees.--Section 3201 of such Code (relating 
        to rate of tax) is amended by redesignating subsection (c) as 
        subsection (d) and by inserting after subsection (b) the 
        following new subsection:
    ``(c) Wages Received in Excess of Contribution and Benefit Base.--
In addition to other taxes, there is hereby imposed on the income of 
each employee a tax equal to 3 percent of the excess (if any) of--
            ``(1) the compensation (determined without regard to 
        section 3231(e)(2)) received during any calendar year by such 
        employee for services rendered by such employee, over
            ``(2) so much of such compensation as does not exceed the 
        contribution and benefit base, as determined under section 230 
        of the Social Security Act for such calendar year.''.
            (2) Tax on employee representatives.--Section 3211 of such 
        Code (relating to rate of tax) is amended by redesignating 
        subsection (c) as subsection (d) and by inserting after 
        subsection (b) the following new subsection:
    ``(c) Wages Received in Excess of Contribution and Benefit Base.--
In addition to other taxes, there is hereby imposed on the income of 
each employee representative a tax equal to 3 percent of the excess (if 
any) of--
            ``(1) the compensation (determined without regard to 
        section 3231(e)(2)) received during any calendar year by such 
        employee representative for services rendered by such employee 
        representative, over
            ``(2) so much of such compensation as does not exceed the 
        contribution and benefit base, as determined under section 230 
        of the Social Security Act for such calendar year.''.
            (3) Tax on employers.--Section 3221 of such Code (relating 
        to rate of tax) is amended by redesignating subsection (c) as 
        subsection (d) and by inserting after subsection (b) the 
        following new subsection:
    ``(c) Wages Paid in Excess of Contribution and Benefit Base.--In 
addition to other taxes, there is hereby imposed on every employer an 
excise tax, with respect to having individuals in his employ, equal to 
3 percent of the excess (if any) of--
            ``(1) the compensation (determined without regard to 
        section 3231(e)(2)) paid during any calendar year by such 
        employer for services rendered to such employer, over
            ``(2) so much of such compensation as does not exceed the 
        contribution and benefit base, as determined under section 230 
        of the Social Security Act for such calendar year.''.
    (d) Tax on Self-Employment Income.--Section 1401 of such Code 
(relating to rate of tax) is amended by adding at the end the following 
new subsection:
    ``(d) Wages Received in Excess of Contribution and Benefit Base.--
In addition to the taxes imposed by subsections (a) and (b) and 
notwithstanding subsection (c), there shall be imposed for each taxable 
year, on the self-employment income of every individual, a tax equal to 
6 percent of the excess (if any) of--
            ``(1) the self-employment income for such taxable year, 
        over
            ``(2) so much of such self-employment income as does not 
        exceed the contribution and benefit base, as determined under 
        section 230 of the Social Security Act, which is effective for 
        the calendar year in which such taxable year begins.''.
    (e) Conforming Amendments.--
            (1) Section 24(d)(2)(A) of such Code is amended--
                    (A) in clause (i) by inserting ``(other than 
                subsection (d) thereof)'' after ``3101'', and
                    (B) in clause (ii) by inserting ``(other than 
                subsection (d) thereof)'' after ``1401''.
            (2) Section 45B(b)(1) of such Code is amended by inserting 
        ``(other than subsection (d) thereof)'' after ``section 3111''.
            (3) Section 406(b)(2)(B) of such Code is amended by 
        inserting ``(other than subsection (d) thereof)'' after 
        ``3101''.
            (4) Section 3121(l)(1)(A) of such Code is amended by 
        striking ``sections 3101 and 3111'' and inserting ``sections 
        3101 (other than subsection (d) thereof) and 3111 (other than 
        subsection (d) thereof)''.
            (5) Section 6051(a)(6) of such Code is amended by inserting 
        ``(stated separately with respect to the taxes imposed by 
        subsections (a), (b), and (d) thereof)''.
            (6) Section 6053(b) of such Code is amended--
                    (A) by striking ``section 3101 or section 3201'' 
                and inserting ``section 3101 (without regard to 
                subsection (d) thereof) or section 3201 (without regard 
                to subsection (d) thereof)'', and
                    (B) by inserting ``with respect to sections 3101(a) 
                and (b) and 3201(a) and (b)'' after ``as the case may 
                be'' the second place it appears.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        remuneration paid after December 31, 2005.
            (2) Self-employment income.--The amendment made by 
        subsection (d) shall apply to taxable years beginning after 
        December 31, 2005.

SEC. 3. POINT OF ORDER AGAINST DIRECT SPENDING OR REVENUE LEGISLATION 
              THAT IS NOT FULLY OFFSET.

    (a) Point of Order.--Section 401 of the Congressional Budget Act of 
1974 is amended by adding at the end the following:
    ``(d) Pay-as-You-Go Rule.--
            ``(1) Point of order.--
                    ``(A) In general.--Notwithstanding any other 
                provision law, it shall not be in order in the Senate 
                or the House of Representatives to consider any direct 
                spending or revenue legislation that would decrease a 
                unified-budget surplus or cause or increase a unified-
                budget deficit, for any applicable time period.
                    ``(B) Applicable time period.--For purposes of 
                subparagraph (A), the term `applicable time period' 
                means any of the following three periods:
                            ``(i) The current year and the budget year.
                            ``(ii) The current year and the five 
                        subsequent fiscal years.
                            ``(iii) The five fiscal years following the 
                        period described in clause (ii).
                    ``(C) Exclusion.--For purposes of this paragraph, 
                the terms `direct-spending legislation' and `revenue 
                legislation' do not include any provision of 
                legislation that affects the full funding of, and 
                continuation of, the deposit insurance guarantee 
                commitment in effect on the date of the enactment of 
                the Social Security Forever Act of 2005.
                    ``(D) Calculations.--Calculations prepared pursuant 
                to this paragraph shall employ the baseline used for 
                the most recently adopted concurrent resolution on the 
                budget.
                    ``(E) Use of enacted savings.--If direct spending 
                or revenue legislation decreases a unified-budget 
                surplus or causes or increases a unified-budget deficit 
                when taken individually, then it must also do so when 
                taken together with all direct spending and revenue 
                legislation enacted since the beginning of the calendar 
                year not accounted for in the baseline under 
                subparagraph (D).
            ``(2) War.--The current-year and budget-year costs of 
        legislation shall not be counted for purposes of paragraph (1) 
        whenever a declaration of war is in effect.
            ``(3) Recession.--Paragraph (1) shall not apply to any 
        legislation all of whose provisions expire within 18 months of 
        enactment if Congress declares by concurrent resolution or 
        statute, and the president independently declares by 
        proclamation, that the economy is suffering from the current or 
        lingering effects of a recession.''.
    (b) Waivers and Appeals.--Section 904 of the Congressional Budget 
Act of 1974 is amended by adding ``401(d),'' after ``313,'' in 
subsection (c) and in subsection (d).
    (c) Effective Date.--The amendments made by this section shall take 
efect the day after their enactment, and any tax or entitlement 
legislation enacted before the effective date of such amendments, 
including the provisions of section 2, shall not count for purposes of 
determining compliance with this section.

SEC. 4. SIGNATURES ON TREASURY SECURITIES.

    (a) In General.--Subchapter II of chapter 31 of title 31, United 
States Code, is amended by adding at the end the following new section:
``Sec. 3131. Signatures on obligations issued or guaranteed under this 
              chapter
    ``Every obligation issued or guaranteed under the authority of this 
chapter shall bear a facsimile of the signatures of the President of 
the United States and the Secretary of the Treasury.''.
    (b) Clerical Amendment.--The table of sections for chapter 31, 
United States Code, is amended by adding after the item relating to 
section 3130 the following new item:

``3131. Signatures on obligations issued or guaranteed under this 
                            chapter.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after 3 months after the date of the 
enactment of this Act.
                                 <all>