[House Report 106-795]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-795

======================================================================



 
   PROVIDING FOR THE CONSIDERATION OF H.R. 4865, THE SOCIAL SECURITY 
                    BENEFITS TAX RELIEF ACT OF 2000

                                _______
                                

   July 26, 2000.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Sessions, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 564]

    The Committee on Rules, having had under consideration 
House Resolution 564, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration in the House 
of H.R. 4865, the Social Security Benefits Tax Relief Act of 
2000, under a modified closed rule. The rule provides one hour 
of debate equally divided and controlled by the chairman and 
ranking minority member of the Committee on Ways and Means. The 
rule waives all points of order against the bill and against 
its consideration.
    The rule provides that the amendment recommended by the 
Committee on Ways and Means now printed in the bill shall be 
considered as adopted upon adoption of the resolution. The rule 
further provides for consideration of the amendment in the 
nature of a substitute printed in this report, if offered by 
Representative Pomeroy or his designee, which shall be 
considered as read and shall be separately debatable for one 
hour equally divided between the proponent and an opponent. The 
rule waives all points of order against the amendment printed 
in this report. Finally, the rule provides one motion to 
recommit with or without instructions.
    The waiver of all points of order against the bill and 
against its consideration includes a waiver of clause 4 of rule 
XIII (requiring a three-day availability of the committee 
report) because even though the report was filed on Monday, 
July 24, it was not made available until Wednesday, July 26, 
and may be considered on the floor as early as Thursday, July 
27. The waiver of all points of order also includes a waiver of 
clause 4 of rule XXI (prohibiting appropriations in legislative 
bills) because section 3(a) of the bill appropriates revenue to 
the Hospital Insurance Trust Fund. The waiver of all points of 
order against the amendment printed in this report also 
includes a waiver of clause 4 of rule XXI because section 3(a) 
of the amendment is identical to the section 3(a) of the bill.

           Summary of Amendment Made in Order Under the Rule

    Pomeroy/Green (TX)/Capuano--Increases the income level at 
which the 85% tax on Social Security benefits would apply from 
$44,000 on a joint return to $100,000 and from $32,000 on a 
single return to $80,000. The tax reductions would be subject 
to annual certifications by the Secretary of the Treasury that 
there are sufficient surpluses outside the Social Security and 
Medicare programs to make the Medicare Trust Fund whole.

             TEXT OF AMENDMENT MADE IN ORDER UNDER THE RULE

 An Amendment To Be Offered by Representative Pomeroy of North Dakota, 
                             or a Designee

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Social Security Benefits Tax 
Relief Act of 2000''.

SEC. 2. INCREASE IN ADJUSTED BASE AMOUNT CONTINGENT ON AVAILABILITY OF 
                    BUDGET SURPLUSES.

  (a) In General.--Section 86 of the Internal Revenue Code of 
1986 (relating to social security and tier 1 railroad 
retirement benefits) is amended by adding at the end the 
following new subsection:
  ``(g) Increase in Adjusted Base Amount Contingent on 
Availability of Budget Surpluses.--
          ``(1) In general.--For any taxable year beginning 
        after December 31, 2000, subsection (c)(2) shall be 
        applied--
                  ``(A) by substituting `$80,000' for `$34,000' 
                in subparagraph (A) thereof, and
                  ``(B) by substituting `$100,000' for 
                `$44,000' in subparagraph (B) thereof.
          ``(2) Contingency.--
                  ``(A) In general.--Paragraph (1) shall apply 
                to taxable years beginning in any calendar year 
                only if the Secretary of the Treasury certifies 
                (before the close of such calendar year) that 
                the condition specified in subparagraph (B) is 
                met with respect to such calendar year.
                  ``(B) Condition.--The condition specified in 
                this subparagraph is met for any calendar year 
                if the projected on-budget surplus for the 
                fiscal year beginning in such calendar year 
                (determined by excluding the receipts and 
                disbursements of part A of the medicare 
                program) is greater than the projected 
                appropriations that would be required by 
                section 3 of the Social Security Benefits Tax 
                Relief Act of 2000 for such fiscal year if 
                paragraph (1) had been in effect for all 
                taxable years after 2000.''.
  (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2000.

SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL INSURANCE TRUST FUND.

  (a) In General.--There are hereby appropriated to the 
Hospital Insurance Trust Fund established under section 1817 of 
the Social Security Act amounts equal to the reduction in 
revenues to the Treasury by reason of the enactment of this 
Act. Amounts appropriated by the preceding sentence shall be 
transferred from the general fund at such times and in such 
manner as to replicate to the extent possible the transfers 
which would have occurred to such Trust Fund had this Act not 
been enacted.
  (b) Reports.--The Secretary of the Treasury or the 
Secretary's delegate shall annually report to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate the amounts and timing of 
the transfers under this section.

                                  
