H.R. 4414 (105th): Repeal the Social Security Tax Increase Act

105th Congress, 1997–1998. Text as of Aug 05, 1998 (Introduced).

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HR 4414 IH

105th CONGRESS

2d Session

H. R. 4414

To amend the Internal Revenue Code of 1986 to repeal the 1993 increase in taxes on Social Security benefits.

IN THE HOUSE OF REPRESENTATIVES

August 5, 1998

Mr. NEUMANN introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, 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 repeal the 1993 increase in taxes on Social Security benefits.

    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 ‘Repeal the Social Security Tax Increase Act’.

SEC. 2. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY BENEFITS.

    (a) IN GENERAL- Paragraph (2) of section 86(a) 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 sentence:

      ‘This paragraph shall not apply to any taxable year beginning after December 31, 1998.’

    (b) CONFORMING AMENDMENTS-

      (1) Paragraph (3) of section 871(a) of such Code is amended by striking ‘85 percent’ in subparagraph (A) and inserting ‘50 percent’.

      (2)(A) Subparagraph (A) of section 121(e)(1) of the Social Security Amendments of 1983 (Public Law 98-21) is amended--

        (i) by striking ‘(A) There’ and inserting ‘There’;

        (ii) by striking ‘(i)’ immediately following ‘amounts equivalent to’; and

        (iii) by striking ‘, less (ii)’ and all that follows and inserting a period.

      (B) Paragraph (1) of section 121(e) of such Act is amended by striking subparagraph (B).

      (C) Paragraph (3) of section 121(e) of such Act is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B).

      (D) Paragraph (2) of section 121(e) of such Act is amended in the first sentence by striking ‘paragraph (1)(A)’ and inserting ‘paragraph (1)’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1998.

SEC. 3. OFFSET THROUGH REDUCTIONS IN DISCRETIONARY SPENDING LIMITS; APPROPRIATIONS AUTHORIZED FOR FEDERAL HOSPITAL INSURANCE TRUST FUND.

    (a) REDUCTION IN DISCRETIONARY SPENDING LIMITS- Whenever the Director of the Office of Management and Budget estimates this legislation under section 252(d)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985, the Director shall decrease the adjusted discretionary spending limits set forth in section 251(c) of such Act for budget authority and outlays--

      (1) for fiscal year 1999 for the nondefense category by $4.5 billion;

      (2) for fiscal year 2000 for the discretionary category by $8.3 billion;

      (3) for fiscal year 2001 for the discretionary category by $8.8 billion; and

      (4) for fiscal year 2002 for the discretionary category by $9.1 billion.

    (b) AUTHORIZATION OF APPROPRIATION OF EQUIVALENT OF TAX REDUCTION TO FEDERAL HOSPITAL INSURANCE TRUST FUND- For each of the fiscal years specified in subsection (a), there is hereby authorized to be appropriated to the Federal Hospital Insurance Trust Fund established by section 1817 of the Social Security Act an amount equal to the amount by which the adjusted discretionary spending limit is reduced under subsection (a) for such fiscal year.

    (c) EFFECT ON PAYGO SCORECARD- For purposes of section 252(b) of the Balanced Budget and Emergency Deficit Control Act of 1985, an amount equal to the decrease in the discretionary spending limit for outlays for each such fiscal year pursuant to subsection (a) shall be treated as direct spending legislation decreasing the deficit for that fiscal year.