,i #aafth ,,congress #ast ,session ,h4 ,r4 #efg ,,in ,,the ,,house ,,of ,,representatives ,january #ae1 #bjai,mr4 ,crist introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend title ,,ii of the ,social ,security ,act and the ,internal ,revenue ,code of #aihf to modify the portion of wages and self-employment income subject to payroll taxes1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,save ,social ,security ,act of #bjai4 #b4 ,determination of wages and self-employment income above contribution and benefit base after #bjai 7a7 ,determination of wages above contribution and benefit base after #bjai 7#a7 ,amendments to the ,internal ,revenue ,code 7,a7 ,in general ,section #caba7;a77#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 #cjj1jjj1 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 #cjj1jjj44 7,b7 ,conforming amendment ,section #caba7;a77#a7 of such ,code is amended by striking ,act7 to and inserting ,act71 or in excess of #cjj1jjj1 to4 7#b7 ,amendment to the ,social ,security ,act ,section #bji7;a77#a77;,i7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7;a77#a77;,i77 is amended by inserting before the semicolon at the end the following3 except that this subparagraph shall apply only to calendar years for which the contribution and benefit base 7as so determined7 is less than #cjj1jjj1 and1 for such calendar years1 only to the extent remuneration paid to such employee by such employer with respect to employment does not exceed #cjj1jjj4 7#c7 ,effective date ,the amendments made by this subsection shall apply with respect to remuneration paid in calendar years after #bjai4 7b7 ,determination of self-,employment income above contribution and benefit base after #bjai 7#a7 ,amendments to the ,internal ,revenue ,code 7,a7 ,in general ,section #adjb7;b77#a7 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;a7-- 7,a7 in the case of a taxpayer with wages 7as determined under section #caba7;a7 without regard to paragraph 7#a7 of such section7 less than #cjj1jjj and more than 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 the lesser of-- 7i7 the excess of #cjj1jjj over the wages 7as so determined7 paid to such individual during such taxable year1 or 7ii7 the net earnings from self-employment for the taxable year1 and 7,b7 in the case of a taxpayer with wages 7as so determined7 less than or equal to such contribution and benefit base and for whom the sum1 for the taxable year1 of net earnings from self-employment and wages 7as so determined7 paid to such individual is greater than such contribution and benefit base1 the lesser of-- 7i7 the excess of such sum over such contribution and benefit base1 or 7ii7 the excess of #cjj1jjj over such contribution and benefit base4 4 7,b7 ,phaseout ,section #adjb7;b7 of such ,code 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 #cjj1jjj44 7#b7 ,amendments to the ,social ,security ,act 7,a7 ,in general ,section #baa7;b77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7;b77 is amended-- 7i7 in subparagraph 7,i7-- 7,i7 by inserting and before #bjbj after #aigd2 and 7,,ii7 by striking or at the end2 and 7ii7 by adding at the end the following3 7,j7 ,for any taxable year beginning in any calendar year after #bjai1 an amount equal to-- 7i7 in the case of an individual with wages 7as determined under section #bji7;a7 without regard to paragraph 7#a7 of such section7 less than #cjj1jjj and more than 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 the lesser of-- 7,i7 the excess of #cjj1jjj over the wages 7as so determined7 paid to such individual during such taxable year1 or 7,,ii7 the net earnings from self-employment for the taxable year1 and 7ii7 in the case of a taxpayer with wages 7as so determined7 less than or equal to such contribution and benefit base and for whom the sum1 for the taxable year1 of net earnings from self-employment and wages 7as so determined7 paid to such individual is greater than such contribution and benefit base1 the lesser of-- 7,i7 the excess of such sum over such contribution and benefit base1 or 7,,ii7 the excess of #cjj1jjj over such contribution and benefit base4 4 7,b7 ,phaseout ,section #baa7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #daa7;b77 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 #bcj7 is less than #cjj1jjj44 7#c7 ,effective date ,the amendments made by this subsection shall apply to net earnings from self-employment derived1 and remuneration paid1 in calendar years after #bjai4 #c4 ,inclusion of earnings over #cjj1jjj in social security benefit formula 7a7 ,inclusion of earnings over #cjj1jjj 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 clause 7ii71 by striking and at the end2 7#b7 in clause 7iii71 by inserting and at the end2 and 7#c7 by inserting after clause 7iii7 the following3 7iv7 #c percent of the individual's excess average indexed monthly earnings 7as defined in subsection 7b77#e77;,a774 4 7b7 ,definition of excess average indexed monthly earnings ,section #bae7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;b77 is amended-- 7#a7 by striking wages and self-employment income each place such terms appear and inserting basic wages and basic self-employment income1 respectively2 and 7#b7 by adding at the end the following3 7#e7 7,a7 ,an individual's excess average indexed monthly earnings shall be equal to the amount of the individual's average indexed monthly earnings that would be determined under this subsection by substituting excess wages for basic wages and excess self-employment income for basic self-employment income each place such terms appear in this subsection 7except in this paragraph74 7,b7 ,for purposes of this subsection-- 7i7 the term basic wages means that portion of the wages of an individual paid in a year that does not exceed the contribution and benefit base for the year2 7ii7 the term basic self-employment income means that portion of the self-employment income of an individual credited to a year that does not exceed an amount equal to the contribution and benefit base for the year minus the amount of the wages paid to the individual in the year2 7iii7 the term excess wages means that portion of the wages of an individual paid in a year after #bjai in excess of the higher of #cjj1jjj or the contribution and benefit base for the year2 and 7iv7 the term excess self-employment income means that portion of the self-employment income of an individual credited to a year after #bjai in excess of the higher of #cjj1jjj or such contribution and benefit base4 4 7c7 ,conforming amendment ,section #bae7;e77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dae7;e77#a77 is amended by inserting and before #bjbj after #aigd4 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 ,act7 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 #bjai4 #d4 ,modification of amount of social security benefits included in gross income 7a7 ,in general ,section #hf of the ,internal ,revenue ,code of #aihf is amended by striking subsections 7a71 7b71 and 7c7 and inserting the following3 7a7 ,in general ,gross income for the taxable year of any taxpayer described in subsection 7b7 7notwithstanding section #bjg of the ,social ,security ,act7 includes social security benefits in an amount equal to the lesser of-- 7#a7 #he percent of the social security benefits received during the taxable year1 or 7#b7 #he percent of the excess described in subsection 7b74 7b7 ,taxpayers to whom subsection 7a7 applies ,a taxpayer is described in this subsection if-- 7#a7 the sum of-- 7,a7 the modified adjusted gross income of the taxpayer for the taxable year1 plus 7,b7 #he percent of the social security benefits received during the taxable year1 exceeds 7#b7 #ajj1jjj4 7c7 ,modified adjusted gross income ,for purposes of this section1 the term modified adjusted gross income means adjusted gross income-- 7#a7 determined without regard to this section and sections #ace1 #acg1 #aii1 #bba1 #bbb1 #iaa1 #ica1 and #icc1 and 7#b7 increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax4 4 7b7 ,social security trust funds held harmless ,there are hereby appropriated 7out of any money in the ,treasury not otherwise appropriated7 for each fiscal year to each fund under the ,social ,security ,act or the ,railroad ,retirement ,act of #aigd an amount equal to the reduction in the transfers to such fund for such fiscal year by reason of the amendments made by subsection 7a74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4