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H.R. 1863 (111th): Social Security Forever Act of 2009

The text of the bill below is as of Apr 1, 2009 (Introduced).


I

111th CONGRESS

1st Session

H. R. 1863

IN THE HOUSE OF REPRESENTATIVES

April 1, 2009

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 impose a tax on the amount of wages in excess of the contribution and benefit base, and for other purposes.

1.

Short title

This Act may be cited as the Social Security Forever Act of 2009.

2.

Tax imposed on wages in excess of contribution and benefit base

(a)

Tax on employees

Section 3101 of the Internal Revenue Code of 1986 (relating to rate of tax) is amended by adding at the end the following new subsection:

(d)

Wages received in excess of contribution and benefit base

In addition to the taxes imposed by subsections (a) and (b) and notwithstanding subsection (c), there is hereby imposed on the income of every individual a tax equal to 3 percent of the excess (if any) of—

(1)

the wages (as defined in section 3121(a)) received by him with respect to employment (as defined in section 3121(b)) during the calendar year, over

(2)

so much of such wages as does not exceed the contribution and benefit base, as determined under section 230 of the Social Security Act for such calendar year.

.

(b)

Tax on Employers

Section 3111 of such Code (relating to rate of tax) is amended by adding at the end the following new subsection:

(d)

Wages paid in excess of contribution and benefit base

In addition to the taxes imposed by subsections (a) and (b) and notwithstanding subsection (c), there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to 3 percent of the excess (if any) of—

(1)

the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)) during the calendar year, over

(2)

so much of such wages as does not exceed the contribution and benefit base, as determined under section 230 of the Social Security Act for such calendar year.

.

(c)

Railroad Retirement

(1)

Tax on employees

Section 3201 of such Code (relating to rate of tax) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

(c)

Wages received in excess of contribution and benefit base

In addition to other taxes, there is hereby imposed on the income of each employee a tax equal to 3 percent of the excess (if any) of—

(1)

the compensation (determined without regard to section 3231(e)(2)) received during any calendar year by such employee for services rendered by such employee, over

(2)

so much of such compensation as does not exceed the contribution and benefit base, as determined under section 230 of the Social Security Act for such calendar year.

.

(2)

Tax on employee representatives

Section 3211 of such Code (relating to rate of tax) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

(c)

Wages received in excess of contribution and benefit base

In addition to other taxes, there is hereby imposed on the income of each employee representative a tax equal to 3 percent of the excess (if any) of—

(1)

the compensation (determined without regard to section 3231(e)(2)) received during any calendar year by such employee representative for services rendered by such employee representative, over

(2)

so much of such compensation as does not exceed the contribution and benefit base, as determined under section 230 of the Social Security Act for such calendar year.

.

(3)

Tax on employers

Section 3221 of such Code (relating to rate of tax) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

(c)

Wages paid in excess of contribution and benefit base

In addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to 3 percent of the excess (if any) of—

(1)

the compensation (determined without regard to section 3231(e)(2)) paid during any calendar year by such employer for services rendered to such employer, over

(2)

so much of such compensation as does not exceed the contribution and benefit base, as determined under section 230 of the Social Security Act for such calendar year.

.

(d)

Tax on self-employment income

Section 1401 of such Code (relating to rate of tax) is amended by adding at the end the following new subsection:

(d)

Wages received in excess of contribution and benefit base

In addition to the taxes imposed by subsections (a) and (b) and notwithstanding subsection (c), there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to 6 percent of the excess (if any) of—

(1)

the self-employment income for such taxable year, over

(2)

so much of such self-employment income as does not exceed 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.

.

(e)

Conforming amendments

(1)

Section 24(d)(2)(A) of such Code is amended—

(A)

in clause (i) by inserting (other than subsection (d) thereof) after 3101, and

(B)

in clause (ii) by inserting (other than subsection (d) thereof) after 1401.

(2)

Section 45B(b)(1) of such Code is amended by inserting (other than subsection (d) thereof) after section 3111.

(3)

Section 406(b)(2)(B) of such Code is amended by inserting (other than subsection (d) thereof) after 3101.

(4)

Section 3121(l)(1)(A) of such Code is amended by striking sections 3101 and 3111 and inserting sections 3101 (other than subsection (d) thereof) and 3111 (other than subsection (d) thereof).

(5)

Section 6051(a)(6) of such Code is amended by inserting (stated separately with respect to the taxes imposed by subsections (a), (b), and (d) thereof) after section 3101 .

(6)

Section 6053(b) of such Code is amended—

(A)

by striking section 3101 or section 3201 and inserting section 3101 (without regard to subsection (d) thereof) or section 3201 (without regard to subsection (d) thereof), and

(B)

by inserting with respect to sections 3101 (a) and (b) and 3201 (a) and (b) after as the case may be the second place it appears.

(f)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply with respect to remuneration paid after December 31, 2009.

(2)

Self-employment income

The amendment made by subsection (d) shall apply to taxable years beginning after December 31, 2009.

3.

Signatures on Treasury securities

(a)

In general

Subchapter II of chapter 31 of title 31, United States Code, is amended by adding at the end the following new section:

3131.

Signatures on obligations issued or guaranteed under this chapter

Every obligation issued or guaranteed under the authority of this chapter shall bear a facsimile of the signatures of the President of the United States and the Secretary of the Treasury.

.

(b)

Clerical amendment

The table of sections for chapter 31, United States Code, is amended by adding after the item relating to section 3130 the following new item:

3131. Signatures on obligations issued or guaranteed under this chapter.

.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after the date which is 3 months after the date of the enactment of this Act.