,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #cbga  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #h1 #bjbe,mr4    
,boyle ( ,p5nsylvania introduc$ ! foll[+
 bill2 :i* 0 ref]r$ to ! ,committee on  
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to       
increase fund+ = ,social ,security &    
,m$ic>e4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,m$ic>e & ,social ,security 
,fair ,%>e ,act4  #b4 ,modification (   
payroll taxes  7a7 ,wage base = taxes   
fund+ social security  7#a7 ,9 g5]al    
,p>agraph 7#a7 ( section #caba7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#a7 9 ! case ( taxes
 impos$ by sections #caja7;a7 &         
#caaa7;a71 = any cal5d> ye> 9 :i* !     
contribution & b5efit base 7z det]m9$ "u
 section #bcj ( ! ,social ,security     
,act7 is less ?an #djj1jjj1 s mu* ( !   
remun]ation 7o!r ?an remun]ation ref]r$ 
to 9 ! succe$+ p>agraphs ( ?is          
subsection7 ) respect to employm5t t has
 be5 paid to an individual by an employ]

 dur+ ! cal5d> ye> z exce$s su*         
contribution & b5efit base b does n     
exce$ #djj1jjj2  4  7#b7 ,con=m+        
am5dm5ts  7,a7 ,successor employ]s      
,section #caba ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7aa7 ,special 
rules = successor employ]s ,= purposes (
 subsection 7a77#a71 if an employ]      
7h]e9aft] ref]r$ to z successor employ]7
 dur+ any cal5d> ye> 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$ecessor1 !n1 = !       
purpose ( det]m9+ ! am\nt ( remun]ation 
paid by ! successor employ] "u su*      
subsection1 any remun]ation 7o!r ?an    
remun]ation ref]r$ to 9 ! p>agraphs     
succe$+ p>agraph 7#a7 ( subsection 7a77 

) respect to employm5t paid 7or consid]$
 "u ?is subsection 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  4  7,b7 
,application to railroad retirem5t taxes
 ,clause 7i7 ( section                  
#cbca7;e77#b77;,a7 ( su* ,code is am5d$ 
to read z foll[s3  7i7 ,9 g5]al ,= any  
cal5d> ye> 9 :i* ! applicable base is   
less ?an #djj1jjj1 ! t]m comp5sation    
does n include s mu* ( ! remun]ation    
paid dur+ any cal5d> ye> to an          
individual by an employ] = s]vices r5d]$
 z an employee to su* employ] z exce$s !
 applicable base b does n exce$         
#djj1jjj4  4  7b7 ,fur!r additional     
hospital insurance tax on v high income 
taxpay]s  7#a7 ,9 g5]al ,section        
#caja7;b7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#c7 ,fur!r additional  
tax ,9 addition to ! tax impos$ by      
p>agraphs 7#a7 & 7#b7 & ! prec$+        

subsection1 !re is h]eby impos$ on e    
taxpay] 7o!r ?an a corporation1 e/ate1  
or tru/7 a tax equal to #a4b p]c5t (    
wages :i* are receiv$ ) respect to      
employm5t 7z def9$ 9 section #caba7;b77 
dur+ ! taxable ye> :i* are 9 excess (-- 
7,a7 9 ! case ( a jo9t return1 #ejj1jjj1
  7,b7 9 ! case ( a m>ri$ taxpay] 7z    
def9$ 9 section #ggjc7 fil+ a sep>ate   
return1  ( ! doll> am\nt det]m9$ "u     
subp>agraph 7,a71 &  7,c7 9 any o!r     
case1 #djj1jjj4  4  7#b7 ,collection (  
tax ,section #cajb ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7g7 ,special rules = fur!r 
additional tax  7#a7 ,9 g5]al ,9 ! case 
( any tax impos$ by section             
#caja7;b77#c71 subsection 7a7 %all only 
apply to ! ext5t to :i* ! taxpay]       
receives wages f ! employ] 9 excess (   
#djj1jjj1 & ! employ] may disreg>d !    
am\nt ( wages receiv$ by su* taxpay]'s  
sp\se4  7#b7 ,collection ( am\nts n     
)held ,to ! ext5t t ! am\nt ( any tax   
impos$ by section #caja7;b77#c7 is n    

collect$ by ! employ]1 su* tax %all be  
paid by ! employee4  7#c7 ,tax paid by  
recipi5t ,if an employ]1 9 violation (  
?is *apt]1 fails to d$uct & )hold ! tax 
impos$ by section #caja7;b77#c7 &       
!reaft] ! tax is paid by ! employee1 !  
tax s requir$ to be d$uct$ & )held %all 
n be collect$ f ! employ]1 b ?is        
p>agraph %all 9 no case relieve !       
employ] f liability = any p5alties or   
additions to tax o!rwise applicable 9   
respect ( su* failure to d$uct & )hold4 
4  7c7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to remun]ation
 paid1 & taxable ye>s beg9n+1 on or aft]
 ,janu>y #a ( ! fir/ cal5d> ye> t beg9s 
aft] ! date ( enactm5t ( ?is ,act4  #c4 
,modification ( taxes on self-employm5t 
income  7a7 ,tax on net e>n+s f         
self-,employm5t up to contribution &    
b5efit base & m ?an #djj1jjj ,p>agraph  
7#a7 ( section #adjb7;b7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 9 ! case ( ! tax impos$  
by section #adja7;a7 = any taxable ye>  

beg9n+ 9 a cal5d> ye> 9 :i* !           
contribution & b5efit base 7z det]m9$ "u
 section #bcj ( ! ,social ,security     
,act7 is less ?an #djj1jjj1 ! excess 7if
 any7 (-- 7,a7 s mu* ( ! net e>n+s f    
self-employm5t :i* is 9 excess (--  7i7 
an am\nt equal to ! contribution &      
b5efit base 7z det]m9$ "u section #bcj (
 ! ,social ,security ,act7 :i* is       
effective = ! cal5d> ye> 9 :i* su*      
taxable ye> beg9s1 r$uc$ 7b n bel[ z]o7 
by  7ii7 ! am\nt ( ! wages paid to su*  
individual dur+ su* taxable ye>1 ov]    
7,b7 ! sum (-- 7i7 ! excess 7if any7 (--
  7,i7 ! net e>n+s f self-employm5t     
r$uc$ by ! excess 7if any7 ( subp>agraph
 7,a77i7 ov] subp>agraph 7,a77ii71 ov]  
7,,ii7 #djj1jjj1 r$uc$ by su*           
contribution & b5efit base1 plus  7ii7 !
 am\nt ( ! wages paid to su* individual 
dur+ su* taxable ye> 9 excess ( su*     
contribution & b5efit base & n 9 excess 
( #djj1jjj2 or  4  7b7 ,fur!r additional
 hospital insurance tax on v high income
 taxpay]s  7#a7 ,9 g5]al ,section       

#adja7;b7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#c7 ,fur!r additional  
tax  7,a7 ,9 g5]al ,9 addition to ! tax 
impos$ by p>agraphs 7#a7 & 7#b7 & !     
prec$+ subsection1 !re is h]eby impos$  
on e taxpay] 7o!r ?an a corporation1    
e/ate1 or tru/7 = ea* taxable ye> a tax 
equal to #a4b p]c5t ( ! self-employm5t  
income = su* taxable ye> :i* is 9 excess
 (-- 7i7 9 ! case ( a jo9t return1      
#ejj1jjj1  7ii7 9 ! case ( a m>ri$      
taxpay] 7z def9$ 9 section #ggjc7 fil+ a
 sep>ate return1  ( ! doll> am\nt       
det]m9$ "u subp>agraph 7,a71 &  7iii7 9 
any o!r case1 #djj1jjj4  7,b7           
,coord9ation ) ,,fica ,! am\nts "u      
clause 7i71 7ii71 or 7iii7 7:i*ev] is   
applicable7 ( subp>agraph 7,a7 %all be  
r$uc$ 7b n bel[ z]o7 by ! am\nt ( wages 
tak5 into acc\nt 9 det]m9+ ! tax impos$ 
"u section #caja7;b77#c7 ) respect to ! 
taxpay]4  4  7#b7 ,no d$uction = fur!r  
additional tax  7,a7 ,9 g5]al ,section  
#afd7;f7 ( su* ,code is am5d$ by /rik+  

section #adja7;b77#b7 & ins]t+ p>agraphs
 7#b7 & 7#c7 ( section #adja7;b74  7,b7 
,d$uction = net e>n+s f self-employm5t  
,section #adjb7;a77#ab77;,b7 ( su* ,code
 is am5d$ by /rik+ ! rate impos$ "u     
p>agraph 7#b7 ( section #adja7;b7 &     
ins]t+ ! rates impos$ "u p>agraphs 7#b7 
& 7#c7 ( section #adja7;b74  7#c7       
,te*nical am5dm5t ,section              
#adja7;b77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ section #caba7;b77#b7 & ins]t+ 
section #caja7;b77#b74  7c7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to net e>n+s f self-employm5t
 d]iv$1 & taxable ye>s beg9n+1 on or    
aft] ,janu>y #a ( ! fir/ cal5d> ye> t   
beg9s aft] ! date ( enactm5t ( ?is ,act4
  #d4 ,taxes on une>n$ income  7a7      
,modifications to tax on net inve/m5t   
income  7#a7 ,9 g5]al ,section #adaa ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new          
subsection3  7f7 ,additional am\nt =    
c]ta9 high income individuals  7#a7     
,inclusion ( specifi$ net income  7,a7  

,9 g5]al ,9 ! case ( any individual ^:  
modifi$ adju/$ gross income = ! taxable 
ye> exce$s ! high income ?re%old am\nt1 
subsection 7a77#a7 %all be appli$ by    
sub/itut+ ! great] ( specifi$ net income
 or net inve/m5t income = net inve/m5t  
income 9 subp>agraph 7,a7 !re(4  7,b7   
,phase-9 ( increase ,! increase 9 ! tax 
impos$ "u subsection 7a77#a7 by reason (
 ! application ( subp>agraph 7,a7       
7det]m9$ be=e application ( p>agraph    
7#b77 %all n exce$ ! am\nt :i* be>s !   
same ratio to ! am\nt ( su* increase    
7det]m9$ )\t reg>d to ?is p>agraph7 z-- 
7i7 ! excess describ$ 9 subp>agraph     
7,a71 be>s to  7ii7 #ajj1jjj 7#a_/b su* 
am\nt 9 ! case ( a m>ri$ taxpay] 7z     
def9$ 9 section #ggjc7 fil+ a sep>ate   
return74  7#b7 ,additional rate bracket 
,9 ! case ( any individual ^: modifi$   
adju/$ gross income = ! taxable ye>     
exce$s ! high income ?re%old am\nt1 !   
am\nt ( tax impos$ "u subsection 7a77#a7
 %all be increas$ by an am\nt equal to  
#ac4f p]c5t ( ! less] (-- 7,a7 ! great] 

( ! specifi$ net income or net inve/m5t 
income = ! taxable ye>1 or  7,b7 !      
excess 7if any7 (-- 7i7 ! modifi$ adju/$
 gross income = su* taxable ye>1 ov]    
7ii7 ! high income ?re%old am\nt4  7#c7 
,def9itions  7,a7 ,high income ?re%old  
am\nt ,= purposes ( ?is subsection1 !   
t]m high income ?re%old am\nt means--   
7i7 except z provid$ 9 clause 7ii7 or   
7iii71 #djj1jjj1  7ii7 9 ! case ( a     
taxpay] mak+ a jo9t return "u section   
#fjac or a surviv+ sp\se 7z def9$ 9     
section #b7;a771 #ejj1jjj1 &  7iii7 9 ! 
case ( a m>ri$ taxpay] 7z def9$ 9       
section #ggjc7 fil+ a sep>ate return1   
#a_/b ( ! doll> am\nt det]m9$ "u clause 
7ii74  7,b7 ,specifi$ net income ,=     
purposes ( ?is section1 ! t]m specifi$  
net income means net inve/m5t income    
det]m9$--  7i7 )\t reg>d to ! phrase o!r
 ?an su* income :i* is d]iv$ 9 ! ord9>y 
c\rse ( a trade or bus9ess n describ$ 9 
p>agraph 7#b71 9 subsection             
7c77#a77;,a77i71  7ii7 )\t reg>d to !   
phrase describ$ 9 p>agraph 7#b7 9       

subsection 7c77#a77;,a77ii71  7iii7 )\t 
reg>d to ! phrase o!r ?an prop]ty held 9
 a trade or bus9ess n describ$ 9        
p>agraph 7#b7 9 subsection              
7c77#a77;,a77iii71  7iv7 )\t reg>d to   
p>agraphs 7#b71 7#c71 & 7#d7 (          
subsection 7c71 &  7v7 by treat+        
p>agraphs 7#e7 & 7#f7 ( section #dfi7;c7
 7det]m9$ )\t reg>d to ! phrase ,to !   
ext5t provid$ 9 regulations1 9 su*      
p>agraph 7#f77 z apply+ = purposes (    
subsection 7c7 ( ?is section4  4  7b7   
,application to tru/s & e/ates ,section 
#adaa7;a77#b7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$--  7#a7 by /rik+ #c4h 
p]c5t & ins]t+ #ag4d p]c5t1 &  7#b7 9   
subp>agraph 7,a7 !re(1 by /rik+         
undi/ribut$ net inve/m5t income & ins]t+
 ! great] ( undi/ribut$ specifi$ net    
income or undi/ribut$ net inve/m5t      
income4  7c7 ,cl>ifications ) respect to
 det]m9ation ( net inve/m5t income  7#a7
 ,c]ta9 exceptions ,section             
#adaa7;c77#f7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3     

7#f7 ,special rules ,net inve/m5t income
 %all n include--  7,a7 any item tak5   
into acc\nt 9 det]m9+ self-employm5t    
income = su* taxable ye> on :i* a tax is
 impos$ by section #adja7;b71  7,b7     
wages receiv$ ) respect to employm5t on 
:i* a tax is impos$ "u section #caja7;b7
 7det]m9$ )\t reg>d to section          
#caja7;c77 or #cbja7;a7 7includ+ am\nts 
tak5 into acc\nt "u section             
#caba7v77#b771 &  7,c7 wages receiv$ f !
 p]=mance ( s]vices e>n$ outside !      
,unit$ ,/ates = a =eign employ]4  4     
7#b7 ,net op]at+ losses n tak5 into     
acc\nt ,section #adaa7;c77#a77;,b7 ( su*
 ,code is am5d$ by ins]t+ 7o!r ?an      
section #agb7 aft] ?is subtitle4  7#c7  
,inclusion ( c]ta9 =eign income  7,a7 ,9
 g5]al ,section #adaa7;c77#a77;,a7 ( su*
 ,code is am5d$ by /rik+ & at ! end (   
clause 7ii71 by /rik+ ov] at ! end (    
clause 7iii7 & ins]t+ &1 & by add+ at ! 
end ! foll[+ new clause3  7iv7 any am\nt
 includible 9 gross income "u section   
#iea1 #iea;,a1 #abic1 or #abif1 ov]  4  

7,b7 ,prop] treatm5t ( c]ta9 previ\sly  
tax$ e>n+s & pr(its ,section #adaa7;c7 (
 su* ,code is am5d$ by add+ at ! end !  
foll[+ new p>agraph3  7#g7 ,c]ta9 e>n+s 
& pr(its ( =eign corporations  7,a7 ,9  
g5]al ,except z o!rwise provid$ by !    
,secret>y1 a di/ribution ( e>n+s &      
pr(its t is n treat$ z a divid5d =      
purposes ( *apt] #a by reason ( section 
#iei7;d7 or section #abic7;c7 %all n be 
treat$ z a divid5d = purposes ( ?is     
section4  7,b7 ,regulations & o!r       
guidance ,! ,secret>y %all issue        
regulations or o!r guidance provid+ = ! 
treatm5t ( di/ributions by a =eign      
corporation aft] ,decemb] #ca1 #bjbe1 ( 
e>n+s & pr(its ( su* =eign corporation  
:i* accru$ be=e su* date1 b :i* h n be5 
previ\sly subject to tax "u ?is section4
  4  7d7 ,transf]s ( rev5ues to         
,old-,age & ,survivors1 ,disability     
,insurance1 & ,f$]al ,hospital          
,insurance ,tru/ ,funds  7#a7 ,f$]al    
,old-,age & ,survivors ,tru/ ,fund  7,a7
 ,9 g5]al ,section #bja7;a7 ( ! ,social 

,security ,act 7#db ,u4,s4,c4 #dja7;a77 
is am5d$--  7i7 by /rik+ #ajj p] c5tum  
(1  7ii7 by ins]t+ #ajj p]c5t ( be=e !  
taxes ea* place x appe>s 9 p>agraphs    
7#a71 7#b71 7#c71 & 7#d71 &  7iii7 by   
/rik+ & at ! end ( p>agraph 7#c71 by    
/rik+ ! p]iod at ! end ( p>agraph 7#d7 &
 ins]t+ 2 &1 & by ins]t+ aft] p>agraph  
7#d7 ! foll[+ new p>agraph3  7#e7 #ga4c 
p]c5t ( ! taxes impos$ by section #adaa 
( ! ,int]nal ,rev5ue ,code ( #aihf = any
 taxable ye> beg9n+ aft] ,decemb] #ca1  
#bjbe1 z det]m9$ by ! ,secret>y ( !     
,treasury or ! ,secret>y's delegate bas$
 on tax returns "u subtitle ,f ( su*    
,code1 less ! am\nts specifi$ 9 p>agraph
 7#c7 ( subsection 7b74  4  7,b7 ,con=m+
 am5dm5t ,! f\r? s5t5ce ( section       
#bja7;a7 ( su* ,act 7#db ,u4,s4,c4      
#dja7;a77 is am5d$ by /rik+ clauses 7#c7
 & 7#d7 ea* place x appe>s & ins]t+     
p>agraphs 7#c71 7#d71 & 7#e74  7#b7     
,f$]al ,disability ,insurance ,tru/     
,fund ,section #bja7;b7 ( ! ,social     
,security ,act 7#db ,u4,s4,c4 #dja7;b77 

is am5d$--  7,a7 by /rik+ #ajj p] c5tum 
(1 &  7,b7 by /rik+ & at ! end (        
p>agraph 7#a71 by /rik+ ! p]iod at ! end
 ( p>agraph 7#b7 & ins]t+ 2 &1 & by     
ins]t+ aft] p>agraph 7#b7 ! foll[+ new  
p>agraph3  7#c7 #aj4c p]c5t ( ! taxes   
impos$ by section #adaa ( ! ,int]nal    
,rev5ue ,code ( #aihf = any taxable ye> 
beg9n+ aft] ,decemb] #ca1 #bjbe1 z      
det]m9$ by ! ,secret>y ( ! ,treasury or 
! ,secret>y's delegate bas$ on tax      
returns "u subtitle ,f ( su* ,code4  4  
7#c7 ,f$]al ,hospital ,insurance ,tru/  
,fund ,section #ahag7;a7 ( ! ,social    
,security ,act 7#db ,u4,s4,c4           
#acie;i7a77 is am5d$--  7,a7 by /rik+   
#ajj p] c5tum (1  7,b7 by ins]t+ #ajj   
p]c5t ( be=e ! taxes ea* place x appe>s 
9 p>agraphs 7#a7 & 7#b71 &  7,c7 by     
/rik+ & at ! end ( p>agraph 7#a71 by    
/rik+ ! p]iod at ! end ( p>agraph 7#b7 &
 ins]t+ 2 &1 & by ins]t+ aft] p>agraph  
7#b7 ! foll[+ new p>agraph3  7#c7 #bh4g 
p]c5t ( ! taxes impos$ by section #adaa 
( ! ,int]nal ,rev5ue ,code ( #aihf = any

 taxable ye> beg9n+ aft] ,decemb] #ca1  
#bjbe1 z det]m9$ by ! ,secret>y ( !     
,treasury or ! ,secret>y's delegate bas$
 on tax returns "u subtitle ,f ( su*    
,code4  4  7e7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbe4