[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7309 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7309

 To amend the Internal Revenue Code of 1986 to suspend employment and 
 income taxes for the first two months of 2009, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 9, 2008

Mr. Gohmert (for himself, Mr. Shadegg, Mrs. Blackburn, Mr. Carter, Mr. 
   Franks of Arizona, Mr. Pence, Mr. Westmoreland, Mr. Sessions, Mr. 
  McCotter, Mrs. Myrick, Mr. Sali, Mr. Akin, Mr. McHenry, Mrs. Drake, 
 Mrs. McMorris Rodgers, Mrs. Bachmann, Mr. Garrett of New Jersey, Mr. 
   Price of Georgia, Mr. Paul, Mr. Burton of Indiana, and Mr. Mack) 
 introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committee on Financial Services, 
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 suspend employment and 
 income taxes for the first two months of 2009, 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. SUSPENSION OF EMPLOYMENT TAXES.

    (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) Suspension.--In the case of wages received for service 
performed during the period beginning on January 1, 2009, and ending on 
February 28, 2009, the percentage under subsections (a) and (b) shall 
be zero percent.''.
    (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) Suspension.--In the case of wages paid for service performed 
during the period beginning on January 1, 2009, and ending on February 
28, 2009, the percentage under subsections (a) and (b) shall be zero 
percent.''.
    (c) 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) Suspension.--In the case of self-employment income for 
service performed during the period beginning on January 1, 2009, and 
ending on February 28, 2009, the percentage under subsections (a) and 
(b) shall be zero percent.''.
    (d) Effective Dates.--
            (1) The amendments made by subsections (a) and (b) shall 
        apply to remuneration paid or received after December 31, 2008.
            (2) The amendment made by subsection (c) shall apply to 
        taxable years beginning after December 31, 2008.

SEC. 2. SUSPENSION OF INCOME TAXES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139B the 
following new section:

``SEC. 139C. WAGE AND SELF-EMPLOYMENT INCOME.

    ``In the case of an individual, gross income shall not include--
            ``(1) any remuneration for service performed during the 
        period beginning on January 1, 2009, and ending on February 28, 
        2009, by an employee for his employer, including the cash value 
        of all remuneration (including benefits) paid in any medium 
        other than cash wages (as defined in section 3121), and
            ``(2) any self-employment income (as defined in section 
        1402) derived by such individual during such period.''.
    (b) Clerical Amendment.--The table of sections for such part is 
amended by inserting after the item relating to section 139B the 
following new item:

``Sec. 139C. Wage and self-employment income.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2008.

SEC. 3. FUNDING OF SOCIAL SECURITY TRUST FUNDS WITH REPEALED TARP 
              FUNDS.

    (a) Repeal of Final $350 Billion Purchase Authority Under Troubled 
Assets Relief Program.--Section 115 of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5225) is amended--
            (1) in subsection (a), by striking paragraph (3); and
            (2) by striking subsections (c), (d), (e), and (f).
    (b) Transfer to Social Security Trust Funds.--
            (1) Estimate of secretary.--The Secretary of the Treasury 
        (in consultation with the Secretary of Health and Human 
        Services and the Commissioner of Social Security, as 
        appropriate) shall estimate the impact that the enactment of 
        this Act has on the income and balances of the Federal Old-Age 
        and Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, and the Federal Hospital Insurance Trust 
        Fund.
            (2) Transfer of funds.--If, under subsection (a), the 
        Secretary of the Treasury estimates that the enactment of this 
        Act has a negative impact on the income and balances of any of 
        such funds, the Secretary shall transfer from the general 
        revenues of the Federal Government such sums as may be 
        necessary so as to ensure that the income and balances of such 
        funds are not reduced as a result of the enactment of this Act.

SEC. 4. IMMEDIATE TERMINATION OF TARP PURCHASE AUTHORITY.

    (a) In General.--The authorities provided under section 101(a) of 
the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211), 
excluding section 101(a)(3) of such Act, shall terminate immediately 
upon the enactment of this Act.
    (b) Rule of Construction.--The termination under subsection (a) 
shall apply to any authority of the Secretary of the Treasury under the 
Emergency Economic Stabilization Act of 2008 to purchase preferred or 
other stock or equity in any financial institution.
    (c) Conforming Amendment.--The Emergency Economic Stabilization Act 
of 2008 is amended by striking section 120 (12 U.S.C. 5230).
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