Keeping Our Social Security Promises Act

Keeping Our Social Security Promises Act - Amends the Internal Revenue Code to apply employment and self-employment taxes to remuneration up to the contribution and benefit base and to remuneration in excess of $250,000.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 500 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 500

 To amend the Internal Revenue Code of 1986 to apply payroll taxes to 
 remuneration and earnings from self-employment up to the contribution 
      and benefit base and to remuneration in excess of $250,000.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 7, 2013

    Mr. Sanders (for himself, Mr. Reid, Mr. Leahy, Mrs. Boxer, Ms. 
Klobuchar, Mr. Whitehouse, Mr. Franken, and Mr. Blumenthal) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to apply payroll taxes to 
 remuneration and earnings from self-employment up to the contribution 
      and benefit base and to remuneration in excess of $250,000.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping Our Social Security Promises 
Act''.

SEC. 2. PAYROLL TAX ON REMUNERATION UP TO CONTRIBUTION AND BENEFIT BASE 
              AND MORE THAN $250,000.

    (a) In General.--Paragraph (1) of section 3121(a) of the Internal 
Revenue Code of 1986 is amended by inserting after ``such calendar 
year.'' the following: ``The preceding sentence shall apply only to 
calendar years for which the contribution and benefit base (as so 
determined) is less than $250,000, and, for such calendar years, only 
to so much of the remuneration paid to such employee by such employer 
with respect to employment as does not exceed $250,000.''.
    (b) Conforming Amendment.--Paragraph (1) of section 3121 of the 
Internal Revenue Code of 1986 is amended by striking ``Act) to'' and 
inserting ``Act), or in excess of $250,000, to''.
    (c) Effective Date.--The amendments made by this section shall 
apply to remuneration paid after December 31, 2013.

SEC. 3. TAX ON NET EARNINGS FROM SELF-EMPLOYMENT UP TO CONTRIBUTION AND 
              BENEFIT BASE AND MORE THAN $250,000.

    (a) In General.--Paragraph (1) of section 1402(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) in the case of the tax imposed by section 1401(a), 
        the excess of--
                    ``(A) that part of the net earnings from self-
                employment which is in excess of--
                            ``(i) an amount equal to the contribution 
                        and benefit base (as determined under section 
                        230 of the Social Security Act) which is 
                        effective for the calendar year in which such 
                        taxable year begins, minus
                            ``(ii) the amount of the wages paid to such 
                        individual during such taxable years; over
                    ``(B) that part of the net earnings from self-
                employment which is in excess of the sum of--
                            ``(i) the excess of--
                                    ``(I) the net earning from self-
                                employment reduced by the excess (if 
                                any) of subparagraph (A)(i) over 
                                subparagraph (A)(ii), over
                                    ``(II) $250,000, reduced by such 
                                contribution and benefit base, plus
                            ``(ii) 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 $250,000; or''.
    (b) Phaseout.--Subsection (b) of section 1402 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``Paragraph (1) shall apply only to taxable years beginning in calendar 
years for which the contribution and benefit base (as determined under 
section 230 of the Social Security Act) is less than $250,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to net earnings from self-employment derived, and remuneration 
paid, after December 31, 2013.
                                 <all>