,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #biji  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #ad1 #bjbe,ms4 
,craig 7= h]self1 ,mr4 ,khanna1 ,ms4    
,pett]s51 ,mr4 ,ca/51 & ,mr4 ,riley (   
,new ,york7 introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,ways &    
,means1 & 9 addition to ! ,committee on 
,en]gy & ,comm]ce1 = a p]iod to be      
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to repeal !       
inclusion 9 gross income ( social       
security b5efits1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,y ,e>n$ ,x1 ,y ,keep ,x ,act4  #b4     
,repeal ( inclusion 9 gross income (    
,social ,security b5efits  7a7 ,9 g5]al 
,section #hf ( ! ,int]nal ,rev5ue ,code 
( #aihf 7relat+ to social security      
b5efits7 is am5d$ by add+ at ! end !    
foll[+ new subsection3  7g7 ,t]m9ation  
,?is section %all n apply to any taxable

 ye> beg9n+ aft] ! date ( ! enactm5t (  
?is subsection4  4  7b7 ,social         
,security tru/ funds held h>mless ,!re  
are h]eby appropriat$ 7out ( any money 9
 ! ,treasury n o!rwise appropriat$7 =   
ea* fiscal ye> to ea* fund "u ! ,social 
,security ,act 7includ+ ! ,f$]al        
,hospital ,insurance ,tru/ ,fund7 or !  
,railroad ,retirem5t ,act ( #aigd an    
am\nt equal to ! r$uction 9 ! transf]s  
to su* fund = su* fiscal ye> by reason (
 section #hf7;g7 ( ! ,int]nal ,rev5ue   
,code ( #aihf4  #c4 ,det]m9+ wages &    
self-employm5t income above contribution
 & b5efit base aft] #bjbe  7a7          
,det]m9ation ( wages above contribution 
& b5efit base aft] #bjbe  7#a7 ,am5dm5ts
 to ! ,int]nal ,rev5ue ,code ( #aihf    
7,a7 ,repeal ( pres5t law limitation    
,section #caba7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ p>agraph
 7#a74  7,b7 ,limitation on am\nt (     
wages ,section #caba ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  7aa7 ,limitation on 

am\nt ( wages  7#a7 ,9 g5]al ,9 ! case (
 any cal5d> ye> 9 :i* ! contribution &  
b5efit base 7z det]m9$ "u section #bcj (
 ! ,social ,security ,act7 is less ?an  
#bej1jjj1 = purposes ( ! taxes impos$ by
 sections #caja7;a7 & #caaa7;a71 ! t]m  
wages does n include t "p ( !           
remun]ation :i*1 aft] remun]ation equal 
to su* contribution & b5efit base )     
respect to employm5t has be5 paid to an 
individual by an employ] dur+ ! cal5d>  
ye> ) respect to :i* su* contribution & 
b5efit base is effective1 is paid to su*
 individual by su* employ] dur+ ! cal5d>
 ye>4 ,! prec$+ s5t5ce %all n apply to t
 "p ( ! remun]ation paid to an          
individual aft] remun]ation ( #bej1jjj )
 respect to employm5t has be5 paid to   
su* individual by an employ] 7or any    
p]son relat$ to1 or act+ on behalf (1   
su* employ]1 z det]m9$ by ! ,secret>y7  
dur+ ! cal5d> ye>4  7#b7 ,successor     
employ] ,if an employ] 7h]e9aft] ref]r$ 
to z successor employ]7 dur+ any cal5d> 
ye>1 acquires sub/antially all ! prop]ty

 us$ 9 a trade or bus9ess ( ano!r       
employ] 7h]e9aft] ref]r$ to z a         
pr$ecessor71 or us$ 9 a sep>ate unit ( a
 trade or bus9ess ( a pr$ecessor1 &     
imm$iately aft] ! acquisition employs 9 
8 trade or bus9ess an individual :o     
imm$iately prior to ! acquisition 0     
employ$ 9 ! trade or bus9ess ( su*      
pr$ecessor1 !n1 = ! purpose ( det]m9+   
:e!r ! successor employ] has paid       
remun]ation ) respect to employm5t equal
 to ! contribution & b5efit base 7z     
det]m9$ "u section #bcj ( ! ,social     
,security ,act7 to su* individual dur+  
su* cal5d> ye>1 any remun]ation )       
respect to employm5t paid 7or consid]$  
"u ?is p>agraph z hav+ be5 paid7 to su* 
individual by su* pr$ecessor dur+ su*   
cal5d> ye> & prior to su* acquisition   
%all be consid]$ z hav+ be5 paid by su* 
successor employ]4  7#c7 ,remun]ation ,=
 purposes ( ?is subsection1 ! t]m       
remun]ation does n include remun]ation  
ref]r$ to 9 any p>agraph ( subsection   
7a74  4  7,c7 ,application to railroad  

retirem5t  7i7 ,9 g5]al ,section        
#cbca7;e77#b77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new clause3  7iv7 ,limitation  
on exclusion ,= purposes ( s mu* ( !    
taxes impos$ by sections #cbja7;a71     
#cbaa7;a71 & #cbba7;a7 z are det]m9$ by 
ref]5ce to ! rate 9 effect "u section   
#caja7;a7 or #caaa7;a7-- 7,i7 9 ! case (
 any cal5d> ye> 9 :i* ! contribution &  
b5efit base 7z det]m9$ "u section #bcj (
 ! ,social ,security ,act7 is less ?an  
#bej1jjj1 clause 7i7 %all n apply to t  
"p ( ! remun]ation paid to an individual
 aft] remun]ation ( #bej1jjj = s]vices  
r5d]$ z an employee has be5 paid to su* 
individual by an employ] 7or any p]son  
relat$ to1 or act+ on behalf (1 su*     
employ]1 z det]m9$ by ! ,secret>y7 dur+ 
! cal5d> ye>1 &  7,,ii7 9 ! case ( any  
cal5d> ye> 9 :i* su* contribution &     
b5efit base equals or exce$s #bej1jjj1  
clause 7i7 %all n apply4  4  7ii7       
,exclusion ( remun]ation :i* is n treat$
 z comp5sation ,section                 

#cbca7;e77#b77;,a77ii7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 or 7iv7 aft] "u clause 7i74  7,d7      
,con=m+ am5dm5t ,section                
#cbca7;e77#b77;,c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ ! second
 s5t5ce ( section #caba7;a77#a7 & ins]t+
 section #caba7;aa77#b74  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$7
 is less ?an #bej1jjj1 &1 = su* cal5d>  
ye>s1 only to ! ext5t t remun]ation )   
respect to employm5t paid to su*        
employee does n exce$ #bej1jjj4  7b7    
,det]m9ation ( self-,employm5t income   
above contribution & b5efit base aft]   
#bjbe  7#a7 ,am5dm5ts to ,int]nal       
,rev5ue ,code ( #aihf  7,a7 ,9 g5]al    
,section #adjb7;b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ to read z foll[s3

  7b7 ,self-,employm5t income  7#a7 ,9  
g5]al ,! t]m self-employm5t income means
 ! net e>n+s f self-employm5t d]iv$ by  
an individual1 except t su* t]m %all n  
include net e>n+s f self-employm5t if   
su* net e>n+s = ! taxable ye> are less  
?an #djj4  7#b7 ,limitation on ,,oasdi  
tax ,= purposes ( section #adja7;a71 !  
t]m self employm5t income %all n exce$ !
 sum (-- 7,a7 ! total comp5sation n 9   
excess ( ! contribution & b5efit base 7z
 det]m9$ "u section #bcj ( ! ,social    
,security ,act7 :i* is effective = !    
cal5d> ye> 9 :i* su* taxable ye> beg9s1 
r$uc$ by ! am\nt ( wages n 9 excess (   
su* base paid to su* individual dur+ !  
taxable ye>1 plus  7,b7 ! total         
comp5sation 9 excess ( ! great] (-- 7i7 
#bej1jjj1 or  7ii7 ! am\nt ( wages paid 
to su* individual dur+ ! taxable ye>4   
7#c7 ,def9ition & special rules  7,a7   
,total comp5sation ,= purposes (        
p>agraph 7#b71 ! t]m total comp5sation  
means ! sum ( ! net e>n+s f             
self-employm5t & ! am\nt ( wages paid to

 su* individual dur+ ! taxable ye>4     
7,b7 ,wages ,= purposes ( ?is           
subsection1 ! t]m wages-- 7i7 includes  
su* remun]ation paid to an employee =   
s]vices includ$ "u an agreem5t ent]$    
into pursuant to ! provisions ( section 
#caba7l7 7relat+ to cov]age ( citiz5s ( 
! ,unit$ ,/ates :o are employees ( =eign
 affiliates ( ,am]ican employ]s7 z w\ld 
be wages "u section #caba7;a7 if su*    
s]vices con/itut$ employm5t "u section  
#caba7;b71 &  7ii7 includes comp5sation 
:i* is subject to ! tax impos$ by       
section #cbja or #cbaa 7or w\ld be s    
subject b = p>agraph 7#b7 ( section     
#cbca7;e774  7,c7 ,nonresid5t ali5s ,a  
nonresid5t ali5 individual %all n be    
treat$ z an individual = purposes (     
p>agraph 7#a71 except z provid$ by an   
agreem5t "u section #bcc ( ! ,social    
,security ,act4 ,an individual :o is n a
 citiz5 ( ! ,unit$ ,/ates b :o is a     
resid5t ( ! ,commonweal? ( ,pu]to ,rico1
 ! ,virg9 ,isl&s1 ,guam1 or ,am]ican    
,samoa %all n1 = purposes ( ?is *apt]1  

be consid]$ to be a nonresid5t ali5     
individual4  7,d7 ,*ur* employee ,9 !   
case ( *ur* employee income1 ! special  
rules ( subsection 7j77#b7 %all apply = 
purposes ( p>agraph 7#a74  4  7,b7      
,con=m+ am5dm5ts  7i7 ,section          
#adjb7;j77#b77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ all t   
prec$es %all be appli$ & ins]t+3  7,a7  
,sep>ate application ( de m9imis rule   
,subsection 7b77#a7  4  7ii7 ,section   
#adjb7;j77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ p>agraph 7#b7 ( subsection 7b7 
& ins]t+ subsection 7b77#a74  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$-- 7i7 9 subp>agraph  
7,i7--  7,i7 by ins]t+ & be=e #bjbf aft]
 #aigd2 &  7,,ii7 by /rik+ or at ! end2 
&  7ii7 by add+ at ! end ! foll[+3  7,j7
 ,= any taxable ye> beg9n+ 9 any cal5d> 
ye> aft] #bjbe1 an am\nt equal to--  7i7
 #bej1jjj1 r$uc$ 7b n bel[ z]o7 by  7ii7
 ! sum (--  7,i7 ! "p ( ! net e>n+s f   

self-employm5t 7if any7 :i* is n 9      
excess (-- 7aa7 ! am\nt equal to !      
contribution & b5efit base 7z det]m9$ "u
 section #bcj7 :i* is effective = !     
cal5d> ye> 9 :i* su* taxable ye> beg9s1 
m9us  7bb7 ! am\nt ( ! wages paid to su*
 individual dur+ su* taxable ye>1 plus  
7,,ii7 ! am\nt ( ! wages paid to su*    
individual dur+ su* taxable ye> :i* is 9
 excess ( ! am\nt 9 subclause 7,i77aa72 
or  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    
#bej1jjj44  7c7 ,special rule = wages f 
multiple employ]s :i* total 9 excess (  
#bej1jjj  7#a7 ,9 g5]al ,sub*apt] ,a (  
*apt] #ba ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #cajc4 ,special rules =  
remun]ation f multiple employ]s  7a7 ,9 
g5]al ,9 ! case ( an employee receiv+   

wages f m ?an "o employ] dur+ a cal5d>  
ye>1 !re is h]eby impos$ a tax on su*   
employee 7= ! la/ taxable ye> beg9n+ 9 !
 cal5d> ye> ! wages are receiv$7 equal  
to ! excess 7if any7 (-- 7#a7 ! tax t   
w\ld h be5 impos$ by section #caja7;a7  
if su* wages _h be5 receiv$ f "o        
employ]1 ov]  7#b7 ! aggregate tax      
impos$ by su* section ) respect to su*  
wages4  7b7 ,coord9ation ) special      
refund provision ,no cr$it %all be      
det]m9$ "u section #ca7;b7 ) respect to 
any employee = any taxable ye> unless ! 
am\nt describ$ 9 subsection 7a77#a7 )   
respect to wages receiv$ dur+ ! cal5d>  
ye> 9 :i* su* taxable ye> beg9s exce$s !
 am\nt describ$ 9 subsection 7a77#b7 )  
respect to su* wages1 & ! am\nt ( su*   
cr$it s det]m9$ %all n exce$ su* excess4
  7c7 ,wages ,= purposes ( ?is section1 
! t]m wages %all h ! same mean+ z :5 us$
 9 section #adjb7;b74  7d7 ,application 
to ti] ,i railroad retirem5t tax ,9 !   
case ( comp5sation 7z def9$ 9 section   
#cbca7;e771 = purposes ( apply+         

subsections 7a7 & 7b71 ! ref]5ce to !   
tax t w\ld h be5 impos$ by section      
#caja7;a7 %all be treat$ z includ+ a    
ref]5ce to s mu* ( ! tax t w\ld h be5   
impos$ on su* comp5sation "u section    
#cbja7;a7 or #cbaa7;a7 7or w\ld h be5 s 
impos$ b = p>agraph 7#b7 ( section      
#cbca7;e77 z is det]m9$ by ref]5ce to ! 
rate ( tax 9 effect "u section          
#caja7;a74  4  7#b7 ,failure by         
individual to pay e/imat$ income tax    
,subsection 7m7 ( section #ffed ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7m7 ,special rule =  
c]ta9 employm5t taxes ,= purposes ( ?is 
section1 ! tax impos$ by sections       
#caja7;b77#b7 7to ! ext5t n )held7 & !  
tax impos$ by section #cajc %all be     
treat$ z taxes impos$ by *apt] #b4  4   
7#c7 ,cl]ical am5dm5t ,! table (        
sections = sub*apt] ,a ( *apt] #ba ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #cajc4 ,special rules =           
remun]ation f multiple employ]s4  4  7d7

 ,con=m+ *ange to national av]age wage  
index ,section #bji7k7 ( ! ,social      
,security ,act 7#db ,u4,s4,c4 #dji7k77  
is am5d$--  7#a7 9 p>agraph 7#a71 by    
ins]t+ & to p>agraph 7#d7 aft] p>agraph 
7#b72 &  7#b7 by add+ at ! end ! foll[+3
  7#d7 ,= ea* cal5d> ye> aft] #bjbe1 !  
national av]age wage index z def9$ 9 ?is
 section = su* cal5d> ye> %all be deem$ 
to be ! national av]age wage index      
det]m9$ "u ! prec$+ p>agraphs ( ?is     
section increas$ by ! foll[+ p]c5tage3  
7,a7 ,= cal5d> ye>s #bjbf ?r\gh #bjcj1  
#j4g p]c5t4  7,b7 ,= cal5d> ye>s #bjcb  
?r\gh #bjcf1 #j4h p]c5t4  7,c7 ,= cal5d>
 ye>s aft] #bjch1 #j4i p]c5t4  4  7e7   
,effective dates  7#a7 ,9 g5]al ,!      
am5dm5ts made by subsections 7a7 & 7c7  
%all apply to remun]ation paid 9 cal5d> 
ye>s aft] #bjbe4  7#b7 ,self-employm5t  
income ,! am5dm5ts made by subsection   
7b7 %all apply to taxable ye>s beg9n+   
aft] ,decemb] #ca1 #bjbe4  #d4 ,includ+ 
e>n+s ov] #bej1jjj 9 ,social ,security  
b5efit =mula  7a7 ,inclusion ( e>n+s ov]

 #bej1jjj 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$-- 7#a7 9 clause 7ii71 by /rik+ 
& at ! end2  7#b7 9 clause 7iii71 by    
ins]t+ & at ! end2 &  7#c7 by ins]t+    
aft] clause 7iii7 ! foll[+3  7iv7 #b    
p]c5t ( ! individual's excess av]age    
index$ 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] #bjbe 9    
excess ( ! high] ( #bej1jjj 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] #bjbe 9 excess ( ! high] ( #bej1jjj
 or su* contribution & b5efit base = !  
ye>4  4  7c7 ,con=m+ am5dm5ts ,title    
,,ii ( ! ,social ,security ,act is      

am5d$-- 7#a7 9 section #bjc7;a77#f77;,a7
 7#db ,u4,s4,c4 #djc7;a77#f77;,a771 by  
/rik+ #he p]c5t ( su* individual's      
av]age index$ mon?ly e>n+s & ins]t+ !   
sum ( #he p]c5t ( su* individual's      
av]age index$ mon?ly e>n+s & #a p]c5t ( 
su* individual's excess av]age index$   
mon?ly e>n+s 7z def9$ 9 section         
#bae7;b77#e77;,a772  7#b7 9 section #bab
 7#db ,u4,s4,c4 #dab71 by ins]t+ excess 
av]age index$ mon?ly e>n+s1 aft] av]age 
index$ mon?ly e>n+s1 ea* place x appe>s2
 &  7#c7 9 section #bae7;e77#a7 7#db    
,u4,s4,c4 #dae7;e77#a771 by ins]t+ &    
be=e #bjbf aft] 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] #bjbe4  
7e7 ,hold+ ,,ssi1 m$icaid1 & ,,*ip      

b5efici>ies h>mless ,= purposes (       
det]m9+ ! income ( an individual to     
e/abli% eligibility =1 & ! am\nt (1     
b5efits payable "u title ,,xvi ( !      
,social ,security ,act1 eligibility =   
m$ical assi/ance "u ! ,/ate plan "u     
title ,,xix 7or a waiv] ( su* plan71 or 
eligibility = *ild heal? assi/ance "u ! 
,/ate *ild heal? plan "u title ,,xxi 7or
 a waiv] ( ! plan71 ! am\nt ( any b5efit
 to :i* ! individual is entitl$ "u title
 ,,ii ( su* ,act %all be deem$ n to     
exce$ ! am\nt ( ! b5efit t w\ld be      
det]m9$ = su* individual "u su* title z 
9 effect on ! day be=e ! date ( !       
enactm5t ( ?is ,act4