II 112th CONGRESS 1st Session S. 1762 IN THE SENATE OF THE UNITED STATES October 31, 2011 Mr. Brown of Massachusetts (for himself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To repeal the imposition of withholding on certain payments made to vendors by government entities and to amend the Internal Revenue Code of 1986 to modify the calculation of modified adjusted gross income for purposes of determining eligibility for certain healthcare-related programs.

1.

Short title

This Act may be cited as the Withholding Tax Relief Act of 2011.

2.

Repeal of imposition of withholding on certain payments made to vendors by government entities

The amendment made by section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 is repealed and the Internal Revenue Code of 1986 shall be applied as if such amendment had never been enacted.

3.

Modification of calculation of modified adjusted gross income for determining certain healthcare program eligibility

(a)

In general

Subparagraph (B) of section 36B(d)(2) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting , and, and by adding at the end the following new clause: (iii)any amount of social security benefits of the taxpayer excluded from gross income under section 86. . (b)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.