,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #efg  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #ae1 #bjai,mr4
 ,cri/ introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d title ,,ii ( !    
,social ,security ,act & ! ,int]nal     
,rev5ue ,code ( #aihf to modify !       
portion ( wages & self-employm5t income 
subject to payroll taxes1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,save ,social ,security    
,act ( #bjai4  #b4 ,det]m9ation ( wages 
& self-employm5t income above           
contribution & b5efit base aft] #bjai   
7a7 ,det]m9ation ( wages above          
contribution & b5efit base aft] #bjai   
7#a7 ,am5dm5ts to ! ,int]nal ,rev5ue    
,code  7,a7 ,9 g5]al ,section           
#caba7;a77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by ins]t+ aft] su*    
cal5d> ye>4 ! foll[+3 ,! prec$+ s5t5ce  
%all apply only to cal5d> ye>s = :i* !  
contribution & b5efit base 7z s det]m9$7
 is less ?an #cjj1jjj1 &1 = su* cal5d>  

ye>s1 only to s mu* ( ! remun]ation paid
 to su* employee by su* employ] )       
respect to employm5t z does n exce$     
#cjj1jjj44  7,b7 ,con=m+ am5dm5t        
,section #caba7;a77#a7 ( su* ,code is   
am5d$ by /rik+ ,act7 to & ins]t+ ,act71 
or 9 excess ( #cjj1jjj1 to4  7#b7       
,am5dm5t to ! ,social ,security ,act    
,section #bji7;a77#a77;,i7 ( ! ,social  
,security ,act 7#db ,u4,s4,c4           
#dji7;a77#a77;,i77 is am5d$ by ins]t+   
be=e ! semicolon at ! end ! foll[+3     
except t ?is subp>agraph %all apply only
 to cal5d> ye>s = :i* ! contribution &  
b5efit base 7z s det]m9$7 is less ?an   
#cjj1jjj1 &1 = su* cal5d> ye>s1 only to 
! ext5t remun]ation paid to su* employee
 by su* employ] ) respect to employm5t  
does n exce$ #cjj1jjj4  7#c7 ,effective 
date ,! am5dm5ts made by ?is subsection 
%all apply ) respect to remun]ation paid
 9 cal5d> ye>s aft] #bjai4  7b7         
,det]m9ation ( self-,employm5t income   
above contribution & b5efit base aft]   
#bjai  7#a7 ,am5dm5ts to ! ,int]nal     

,rev5ue ,code  7,a7 ,9 g5]al ,section   
#adjb7;b77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3     
7#a7 9 ! case ( ! tax impos$ by section 
#adja7;a7-- 7,a7 9 ! case ( a taxpay] ) 
wages 7z det]m9$ "u section #caba7;a7   
)\t reg>d to p>agraph 7#a7 ( su*        
section7 less ?an #cjj1jjj & m ?an !    
contribution & b5efit base 7z det]m9$ "u
 section #bcj ( ! ,social ,security     
,act7 :i* is effective = ! cal5d> ye> 9 
:i* su* taxable ye> beg9s1 ! less] (--  
7i7 ! excess ( #cjj1jjj ov] ! wages 7z s
 det]m9$7 paid to su* individual dur+   
su* taxable ye>1 or  7ii7 ! net e>n+s f 
self-employm5t = ! taxable ye>1 &  7,b7 
9 ! case ( a taxpay] ) wages 7z s       
det]m9$7 less ?an or equal to su*       
contribution & b5efit base & = :om !    
sum1 = ! taxable ye>1 ( net e>n+s f     
self-employm5t & wages 7z s det]m9$7    
paid to su* individual is great] ?an su*
 contribution & b5efit base1 ! less] (--
 7i7 ! excess ( su* sum ov] su*         
contribution & b5efit base1 or  7ii7 !  

excess ( #cjj1jjj ov] su* contribution &
 b5efit base4  4  7,b7 ,phase\t ,section
 #adjb7;b7 ( su* ,code is am5d$ by add+ 
at ! end ! foll[+3 ,p>agraph 7#a7 %all  
apply only to taxable ye>s beg9n+ 9     
cal5d> ye>s = :i* ! contribution &      
b5efit base 7z det]m9$ "u section #bcj (
 ! ,social ,security ,act7 is less ?an  
#cjj1jjj44  7#b7 ,am5dm5ts to ! ,social 
,security ,act  7,a7 ,9 g5]al ,section  
#baa7;b77#a7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #daa7;b77 is am5d$-- 7i7 
9 subp>agraph 7,i7--  7,i7 by ins]t+ &  
be=e #bjbj aft] #aigd2 &  7,,ii7 by     
/rik+ or at ! end2 &  7ii7 by add+ at ! 
end ! foll[+3  7,j7 ,= any taxable ye>  
beg9n+ 9 any cal5d> ye> aft] #bjai1 an  
am\nt equal to--  7i7 9 ! case ( an     
individual ) wages 7z det]m9$ "u section
 #bji7;a7 )\t reg>d to p>agraph 7#a7 (  
su* section7 less ?an #cjj1jjj & m ?an !
 contribution & b5efit base 7z det]m9$  
"u section #bcj ( ! ,social ,security   
,act7 :i* is effective = ! cal5d> ye> 9 
:i* su* taxable ye> beg9s1 ! less] (--  

7,i7 ! excess ( #cjj1jjj ov] ! wages 7z 
s det]m9$7 paid to su* individual dur+  
su* taxable ye>1 or  7,,ii7 ! net e>n+s 
f self-employm5t = ! taxable ye>1 &     
7ii7 9 ! case ( a taxpay] ) wages 7z s  
det]m9$7 less ?an or equal to su*       
contribution & b5efit base & = :om !    
sum1 = ! taxable ye>1 ( net e>n+s f     
self-employm5t & wages 7z s det]m9$7    
paid to su* individual is great] ?an su*
 contribution & b5efit base1 ! less] (--
  7,i7 ! excess ( su* sum ov] su*       
contribution & b5efit base1 or  7,,ii7 !
 excess ( #cjj1jjj ov] su* contribution 
& b5efit base4  4  7,b7 ,phase\t        
,section #baa7;b7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #daa7;b77 is am5d$  
by add+ at ! end ! foll[+3 ,p>agraph    
7#a7 %all apply only to taxable ye>s    
beg9n+ 9 cal5d> ye>s = :i* !            
contribution & b5efit base 7z det]m9$ "u
 section #bcj7 is less ?an #cjj1jjj44   
7#c7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply to net e>n+s 
f self-employm5t d]iv$1 & remun]ation   

paid1 9 cal5d> ye>s aft] #bjai4  #c4    
,inclusion ( e>n+s ov] #cjj1jjj 9 social
 security b5efit =mula  7a7 ,inclusion (
 e>n+s ov] #cjj1jjj 9 det]m9ation (     
prim>y insurance am\nts ,section        
#bae7;a77#a77;,a7 ( ! ,social ,security 
,act 7#db ,u4,s4,c4 #dae7;a77#a77;,a77  
is am5d$-- 7#a7 9 clause 7ii71 by /rik+ 
& at ! end2  7#b7 9 clause 7iii71 by    
ins]t+ & at ! end2 &  7#c7 by ins]t+    
aft] clause 7iii7 ! foll[+3  7iv7 #c    
p]c5t ( ! individual's excess av]age    
index$ mon?ly e>n+s 7z def9$ 9          
subsection 7b77#e77;,a774  4  7b7       
,def9ition ( excess av]age index$ mon?ly
 e>n+s ,section #bae7;b7 ( ! ,social    
,security ,act 7#db ,u4,s4,c4 #dae7;b77 
is am5d$--  7#a7 by /rik+ wages &       
self-employm5t income ea* place su* t]ms
 appe> & ins]t+ basic wages & basic     
self-employm5t income1 respectively2 &  
7#b7 by add+ at ! end ! foll[+3  7#e7   
7,a7 ,an individual's excess av]age     
index$ mon?ly e>n+s %all be equal to !  
am\nt ( ! individual's av]age index$    

mon?ly e>n+s t w\ld be det]m9$ "u ?is   
subsection by sub/itut+ excess wages =  
basic wages & excess self-employm5t     
income = basic self-employm5t income ea*
 place su* t]ms appe> 9 ?is subsection  
7except 9 ?is p>agraph74  7,b7 ,=       
purposes ( ?is subsection--  7i7 ! t]m  
basic wages means t portion ( ! wages ( 
an individual paid 9 a ye> t does n     
exce$ ! contribution & b5efit base = !  
ye>2  7ii7 ! t]m basic self-employm5t   
income means t portion ( !              
self-employm5t income ( an individual   
cr$it$ to a ye> t does n exce$ an am\nt 
equal to ! contribution & b5efit base = 
! ye> m9us ! am\nt ( ! wages paid to !  
individual 9 ! ye>2  7iii7 ! t]m excess 
wages means t portion ( ! wages ( an    
individual paid 9 a ye> aft] #bjai 9    
excess ( ! high] ( #cjj1jjj or !        
contribution & b5efit base = ! ye>2 &   
7iv7 ! t]m excess self-employm5t income 
means t portion ( ! self-employm5t      
income ( an individual cr$it$ to a ye>  
aft] #bjai 9 excess ( ! high] ( #cjj1jjj

 or su* contribution & b5efit base4  4  
7c7 ,con=m+ am5dm5t ,section            
#bae7;e77#a7 ( ! ,social ,security ,act 
7#db ,u4,s4,c4 #dae7;e77#a77 is am5d$ by
 ins]t+ & be=e #bjbj aft] #aigd4  7d7   
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to         
individuals :o initially become eligible
 7)9 ! mean+ ( section #bae7;a77#c77;,b7
 ( ! ,social ,security ,act7 = old-age  
or disability insurance b5efits "u title
 ,,ii ( ! ,social ,security ,act1 or :o 
die 7be=e becom+ eligible = su*         
b5efits71 9 any cal5d> ye> aft] #bjai4  
#d4 ,modification ( am\nt ( social      
security b5efits includ$ 9 gross income 
7a7 ,9 g5]al ,section #hf ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
subsections 7a71 7b71 & 7c7 & ins]t+ !  
foll[+3  7a7 ,9 g5]al ,gross income = ! 
taxable ye> ( any taxpay] describ$ 9    
subsection 7b7 7not)/&+ section #bjg ( !
 ,social ,security ,act7 includes social
 security b5efits 9 an am\nt equal to ! 
less] (--  7#a7 #he p]c5t ( ! social    

security b5efits receiv$ dur+ ! taxable 
ye>1 or  7#b7 #he p]c5t ( ! excess      
describ$ 9 subsection 7b74  7b7         
,taxpay]s to :om subsection 7a7 applies 
,a taxpay] is describ$ 9 ?is subsection 
if-- 7#a7 ! sum (--  7,a7 ! modifi$     
adju/$ gross income ( ! taxpay] = !     
taxable ye>1 plus  7,b7 #he p]c5t ( !   
social security b5efits receiv$ dur+ !  
taxable ye>1 exce$s  7#b7 #ajj1jjj4  7c7
 ,modifi$ adju/$ gross income ,=        
purposes ( ?is section1 ! t]m modifi$   
adju/$ gross income means adju/$ gross  
income--  7#a7 det]m9$ )\t reg>d to ?is 
section & sections #ace1 #acg1 #aii1    
#bba1 #bbb1 #iaa1 #ica1 & #icc1 &  7#b7 
increas$ by ! am\nt ( int]e/ receiv$ or 
accru$ by ! taxpay] dur+ ! taxable ye>  
:i* is exempt f tax4  4  7b7 ,social    
security tru/ funds held h>mless ,!re   
are h]eby appropriat$ 7out ( any money 9
 ! ,treasury n o!rwise appropriat$7 =   
ea* fiscal ye> to ea* fund "u ! ,social 
,security ,act or ! ,railroad ,retirem5t
 ,act ( #aigd an am\nt equal to !       

r$uction 9 ! transf]s to su* fund = su* 
fiscal ye> by reason ( ! am5dm5ts made  
by subsection 7a74  7c7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to taxable ye>s end+ aft] ! date (
 ! enactm5t ( ?is ,act4