II 112th CONGRESS 1st Session S. 1558 IN THE SENATE OF THE UNITED STATES September 14, 2011 Mr. Sanders (for himself, Mrs. Boxer, Mr. Whitehouse, Mr. Akaka, Mr. Leahy, Mrs. McCaskill, Mr. Franken, Mr. Blumenthal, and Ms. Mikulski) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to apply payroll taxes to remuneration and earnings from self-employment up to the contribution and benefit base and to remuneration in excess of $250,000.

1.

Short title

This Act may be cited as the Keeping Our Social Security Promises Act.

2.

Payroll tax on remuneration up to contribution and benefit base and more than $250,000

(a)

In general

Paragraph (1) of section 3121(a) of the Internal Revenue Code of 1986 is amended by inserting after such calendar year. the following: The preceding sentence shall apply only to calendar years for which the contribution and benefit base (as so determined) is less than $250,000, and, for such calendar years, only to so much of the remuneration paid to such employee by such employer with respect to employment as does not exceed $250,000.. (b)

Conforming amendment

Paragraph (1) of section 3121 of the Internal Revenue Code of 1986 is amended by striking Act) to and inserting Act), or in excess of $250,000, to. (c)

Effective date

The amendments made by this section shall apply to remuneration paid after December 31, 2011.

3.

Tax on net earnings from self-employment up to contribution and benefit base and more than $250,000

(a)

In general

Paragraph (1) of section 1402(b) of the Internal Revenue Code of 1986 is amended to read as follows: (1)in the case of the tax imposed by section 1401(a), the excess of— (A)that part of the net earnings from self-employment which is in excess of— (i)an amount equal to 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, minus (ii)the amount of the wages paid to such individual during such taxable years; over (B)that part of the net earnings from self-employment which is in excess of the sum of— (i)the excess of— (I)the net earning from self-employment reduced by the excess (if any) of subparagraph (A)(i) over subparagraph (A)(ii), over (II)$250,000, reduced by such contribution and benefit base, plus (ii)the amount of the wages paid to such individual during such taxable year in excess of such contribution and benefit base and not in excess of $250,000; or . (b)

Phaseout

Subsection (b) of section 1402 of the Internal Revenue Code of 1986 is amended by adding at the end the following: Paragraph (1) shall apply only to taxable years beginning in calendar years for which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $250,000.. (c)

Effective date

The amendments made by this section shall apply to net earnings from self-employment derived, and remuneration paid, after December 31, 2011.