[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5779 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5779

   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, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2008

  Mr. Wexler 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 impose a tax on the 
amount of wages in excess of the contribution and benefit base, 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 
2008''.

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)'' after ``section 
        3101''.
            (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, 2008.
            (2) Self-employment income.--The amendment made by 
        subsection (d) shall apply to taxable years beginning after 
        December 31, 2008.

SEC. 3. 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.
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