[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5830 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5830

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2016

 Mr. DeFazio 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 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.

    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 ``No Loopholes in Social Security 
Taxes Act''.

SEC. 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(a) 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, 2016.

SEC. 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, 2016.
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