,,ii #aacth ,,congress #b;d ,session ,s4 #bchb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bb1 #bjad ,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish the ,consumer ,price ,index for ,elderly ,consumers for purposes of determining cost-of-living increases under the ,social ,security ,act1 and to amend the ,internal ,revenue ,code of #aihf to apply payroll taxes to remuneration and earnings from self-employment up to the contribution and benefit base and to remuneration in excess of #bej1jjj1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,fair ,raises for ,seniors ,act4 #b4 ,consumer price index for elderly consumers 7a7 ,in ,general ,the ,bureau of ,labor ,statistics of the ,department of ,labor shall prepare and publish an index for each calendar month to be known as the ,consumer ,price ,index for ,elderly ,consumers or ,,cpi-,e that indicates the average change over time in the prices paid by individuals in the ,united ,states who are #fb years of age and older for a market basket of consumer goods and services4 7b7 ,requirements ,in carrying out subsection 7a71 the ,bureau of ,labor ,statistics shall-- 7#a7 increase the number of individuals in the ,united ,states who are #fb years of age and older sampled in the consumer expenditure survey used to establish the ,,cpi-,e above the number of such individuals sampled for purposes of determining the ,consumer ,price ,index for ,urban ,wage ,earners and ,clerical ,workers 7,,cpi-,w72 7#b7 establish samples of market-based items1 stores1 and prices to represent the purchasing patterns of older adults2 and 7#c7 examine the medical care component1 including the cost and usage of prescription drugs1 of the ,,cpi-,e taking into account that older adults have different illnesses and health care expenses1 including dental expenses1 than individuals in the ,united ,states who are under #fb years of age4 7c7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out the provisions of this section4 7d7 ,effective ,date ,the section shall apply with respect to calendar months ending on or after ,july #ca of the calendar year following the calendar year in which this ,act is enacted4 #c4 ,computation of cost-of-living increases 7a7 ,in general ,section #bae7;i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77 is amended-- 7#a7 in paragraph 7#a77;,g71 by inserting before the period the following3 1 and1 solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age #fb1 effective for adjustments under this subsection to the primary insurance amount on which such benefit is based 7or to any such benefit under section #bbg or #bbh7 occurring after such individual attains such age1 the applicable ,consumer ,price ,index shall be deemed to be the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be deemed adjusted under this subsection using such ,index2 and 7#b7 in paragraph 7#d71 by striking and by section #ijja and inserting 1 by section #ijja1 and by inserting after #aihf1 the following3 and by section #c of the ,fair ,raises for ,seniors ,act14 7b7 ,conforming amendments in applicable former law ,section #bae7;i77#a77;,c7 of such ,act1 as in effect in ,december #aigh and applied in certain cases under the provisions of such ,act in effect after ,december #aigh1 is amended by inserting before the period the following3 1 and1 solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age #fb1 effective for adjustments under this subsection to the primary insurance amount on which such benefit is based 7or to any such benefit under section #bbg or #bbh7 occurring after such individual attains such age1 the applicable ,consumer ,price ,index shall be deemed to be the ,consumer ,price ,index for ,elderly ,consumers and such primary insurance amount shall be deemed adjusted under this subsection using such ,index4 7c7 ,effective date ,the amendments made by subsection 7a7 shall apply to determinations made with respect to cost-of-living computation quarters 7as defined in section #bae7;i77#a77;,b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;i77#a77;,b777 ending on or after ,september #cj of the second calendar year following the calendar year in which this ,act is enacted4 #d4 ,payroll tax on remuneration up to contribution and benefit base and more than #bej1jjj 7a7 ,in general ,paragraph 7#a7 of section #caba7;a7 of the ,internal ,revenue ,code of #aihf is amended by inserting after such calendar year4 the following3 ,the preceding sentence shall apply only to calendar years for which the contribution and benefit base 7as so determined7 is less than #bej1jjj1 and1 for such calendar years1 only to so much of the remuneration paid to such employee by such employer with respect to employment as does not exceed #bej1jjj44 7b7 ,conforming amendment ,paragraph 7#a7 of section #caba7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking ,act7 to and inserting ,act71 or in excess of #bej1jjj1 to4 7c7 ,effective date ,the amendments made by this section shall apply to remuneration paid after ,december #ca1 #bjad4 #e4 ,tax on net earnings from self-employment up to contribution and benefit base and more than #bej1jjj 7a7 ,in general ,paragraph 7#a7 of section #adjb7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 in the case of the tax imposed by section #adja7;a71 the excess of-- 7,a7 that part of the net earnings from self-employment which is in excess of-- 7i7 an amount equal to the contribution and benefit base 7as determined under section #bcj of the ,social ,security ,act7 which is effective for the calendar year in which such taxable year begins1 minus 7ii7 the amount of the wages paid to such individual during such taxable years2 over 7,b7 that part of the net earnings from self-employment which is in excess of the sum of-- 7i7 the excess of-- 7,i7 the net earning from self-employment reduced by the excess 7if any7 of subparagraph 7,a77i7 over subparagraph 7,a77ii71 over 7,,ii7 #bej1jjj1 reduced by such contribution and benefit base1 plus 7ii7 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 #bej1jjj2 or 4 7b7 ,phaseout ,subsection 7b7 of section #adjb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,paragraph 7#a7 shall apply only to taxable years beginning in calendar years for which the contribution and benefit base 7as determined under section #bcj of the ,social ,security ,act7 is less than #bej1jjj44 7c7 ,effective date ,the amendments made by this section shall apply to net earnings from self-employment derived1 and remuneration paid1 after ,december #ca1 #bjad4 #f4 ,inclusion of surplus earnings for benefit determinations 7a7 ,inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts ,section #bae7;a77#a77;,a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77 is amended-- 7#a7 in clauses 7i71 7ii71 and 7iii71 by inserting basic before average indexed monthly earnings each place it appears2 7#b7 in clause 7ii71 by striking and at the end2 7#c7 in clause 7iii71 by adding and at the end2 and 7#d7 by inserting after clause 7iii7 the following new clause3 7iv7 #a percent or #ajjj 7whichever is less7 of the individual's surplus average indexed monthly earnings 7determined under subsection 7b77#a77;,b771 4 7b7 ,basic ,,aime and surplus ,,aime 7#a7 ,basic ,,aime ,section #bae7;b77#a7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#a77 is amended-- 7,a7 in the matter preceding subparagraph 7,a71 by inserting basic before average2 and 7,b7 in subparagraph 7,a71 by striking paragraph 7#c7 and inserting paragraph 7#c77;,a7 and by inserting before the comma the following3 to the extent such total does not exceed the contribution and benefit base for the applicable year4 7#b7 ,surplus ,,aime 7,a7 ,in general ,section #bae7;b77#a7 of such ,act 7as amended by paragraph 7#a77 is amended-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by inserting 7,a7 after 7b77#a72 and 7iii7 by adding at the end the following new subparagraph3 7,b7 7i7 ,an individual's surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing-- 7,i7 the total 7after adjustment under paragraph 7#c77;,b77 of such individual's surplus earnings 7determined under clause 7ii77 for such individual's benefit computation years 7determined under paragraph 7#b771 by 7,,ii7 the number of months in those years4 7ii7 ,for purposes of clause 7i7 and paragraph 7#c77;,b71 an individual's surplus earnings for a benefit computation year are the total of such individual's wages paid in and self-employment income credited to such benefit computation year1 to the extent such total 7before adjustment under paragraph 7#c77;,b77 exceeds the contribution and benefit base for such year4 4 7,b7 ,conforming amendment ,the heading for section #bae7;b7 of such ,act is amended by striking ,average ,indexed ,monthly ,earnings and inserting ,basic ,average ,indexed ,monthly ,earnings2 ,surplus ,average ,indexed ,monthly ,earnings4 7#c7 ,adjustment of surplus earnings for purposes of determining surplus ,,aime ,section #bae7;b77#c7 of such ,act 7#db ,u4,s4,c4 #dae7;b77#c77 is amended-- 7,a7 in subparagraph 7,a71 by striking subparagraph 7,b7 and inserting subparagraph 7,c7 and by inserting and determination of basic average indexed monthly income after paragraph 7#b72 7,b7 by redesignating subparagraph 7,b7 as subparagraph 7,c72 and 7,c7 by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 ,for purposes of determining under paragraph 7#a77;,b7 an individual's surplus average indexed monthly earnings1 the individual's surplus earnings for a benefit computation year shall be deemed to be equal to the product of-- 7i7 the individual's surplus earnings for such year 7as determined under clause 7ii7 of paragraph 7#a77;,b7 without regard to this subparagraph71 and 7ii7 the quotient described in subparagraph 7,a77ii74 4 7c7 ,conforming amendments 7#a7 ,paragraphs 7#c77;,a77ii7 and 7#f77;,a7 of section #bjc7;a7 of such ,act 7#db ,u4,s4,c4 #djc7;a77 are each amended by inserting basic before average indexed monthly earnings4 7#b7 ,subsections 7b7 and 7c7 of section #bab of such ,act 7#db ,u4,s4,c4 #dab7 are each amended by striking average indexed monthly earnings and inserting basic average indexed monthly earnings1 surplus average indexed monthly earnings4 7d7 ,effective date ,the amendments made by this section shall apply with respect to individuals who initially become eligible 7within the meaning of section #bae7;a77#c77;,b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;a77#c77;,b77 for old-age or disability insurance benefits under title ,,ii of the ,social ,security ,act1 or who die 7before becoming eligible for such benefits71 in any calendar year after #bjad4