Save Social Security Act of 2017
This bill amends the Internal Revenue Code and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to: (1) apply Social Security payroll taxes to annual income above $300,000; (2) include earnings above $300,000 in the benefit formula; and (3) increase to $100,000 the income threshold above which Social Security benefits are included in gross income.
(Under current law, Social Security payroll taxes apply to the first $127,200 of income in 2017 and benefits are included in the gross income of individuals with certain income that exceeds thresholds of $0, $25,000, or $32,000, depending on the individual's filing status.)
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1631 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 1631
To amend title II of the Social Security Act and the Internal Revenue
Code of 1986 to modify the portion of wages and self-employment income
subject to payroll taxes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2017
Mr. Crist introduced the following bill; 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 1986 to modify the portion of wages and self-employment income
subject to payroll taxes, and for other purposes.
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 ``Save Social Security Act of 2017''.
SEC. 2. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2017.
(a) Determination of Wages Above Contribution and Benefit Base
After 2017.--
(1) Amendments to the internal revenue code.--
(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 $300,000, 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 $300,000.''.
(B) Conforming amendment.--Paragraph (1) of section
3121(a) of such Code is amended by striking ``Act) to''
and inserting ``Act), or in excess of $300,000, to''.
(2) Amendment to the social security act.--Section
209(a)(1)(I) of the Social Security Act (42 U.S.C.
409(a)(1)(I)) is amended by inserting before the semicolon at
the end the following: ``except that this subparagraph shall
apply only to calendar years for which the contribution and
benefit base (as so determined) is less than $300,000, and, for
such calendar years, only to the extent remuneration paid to
such employee by such employer with respect to employment does
not exceed $300,000''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2017.
(b) Determination of Self-Employment Income Above Contribution and
Benefit Base After 2017.--
(1) Amendments to the internal revenue code.--
(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)--
``(A) in the case of a taxpayer with wages (as
determined under section 3121(a) without regard to
paragraph (1) of such section) less than $300,000 and
more than 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, the lesser of--
``(i) the excess of $300,000 over the wages
(as so determined) paid to such individual
during such taxable year, or
``(ii) the net earnings from self-
employment for the taxable year, and
``(B) in the case of a taxpayer with wages (as so
determined) less than or equal to such contribution and
benefit base and for whom the sum, for the taxable
year, of net earnings from self-employment and wages
(as so determined) paid to such individual is greater
than such contribution and benefit base, the lesser
of--
``(i) the excess of such sum over such
contribution and benefit base, or
``(ii) the excess of $300,000 over such
contribution and benefit base.''.
(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 $300,000.''.
(2) Amendments to the social security act.--
(A) In general.--Section 211(b)(1) of the Social
Security Act (42 U.S.C. 411(b)) is amended--
(i) in subparagraph (I)--
(I) by inserting ``and before
2018'' after ``1974''; and
(II) by striking ``or'' at the end;
and
(ii) by adding at the end the following:
``(J) For any taxable year beginning in any
calendar year after 2017, an amount equal to--
``(i) in the case of an individual with
wages (as determined under section 209(a)
without regard to paragraph (1) of such
section) less than $300,000 and more than 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, the lesser of--
``(I) the excess of $300,000 over
the wages (as so determined) paid to
such individual during such taxable
year, or
``(II) the net earnings from self-
employment for the taxable year, and
``(ii) in the case of a taxpayer with wages
(as so determined) less than or equal to such
contribution and benefit base and for whom the
sum, for the taxable year, of net earnings from
self-employment and wages (as so determined)
paid to such individual is greater than such
contribution and benefit base, the lesser of--
``(I) the excess of such sum over
such contribution and benefit base, or
``(II) the excess of $300,000 over
such contribution and benefit base.''.
(B) Phaseout.--Section 211(b) of the Social
Security Act (42 U.S.C. 411(b)) 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) is less than $300,000.''.
(3) Effective date.--The amendments made by this subsection
shall apply to net earnings from self-employment derived, and
remuneration paid, in calendar years after 2017.
SEC. 3. INCLUSION OF EARNINGS OVER $300,000 IN SOCIAL SECURITY BENEFIT
FORMULA.
(a) Inclusion of Earnings Over $300,000 in Determination of Primary
Insurance Amounts.--Section 215(a)(1)(A) of the Social Security Act (42
U.S.C. 415(a)(1)(A)) is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by inserting ``and'' at the end; and
(3) by inserting after clause (iii) the following:
``(iv) 3 percent of the individual's excess average indexed
monthly earnings (as defined in subsection (b)(5)(A)).''.
(b) Definition of Excess Average Indexed Monthly Earnings.--Section
215(b) of the Social Security Act (42 U.S.C. 415(b)) is amended--
(1) by striking ``wages'' and ``self-employment income''
each place such terms appear and inserting ``basic wages'' and
``basic self-employment income'', respectively; and
(2) by adding at the end the following:
``(5)(A) 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 (except in this paragraph).
``(B) For purposes of this subsection--
``(i) 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 year;
``(ii) 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 year;
``(iii) the term `excess wages' means that portion of the
wages of an individual paid in a year after 2017 in excess of
the higher of $300,000 or the contribution and benefit base for
the year; and
``(iv) the term `excess self-employment income' means that
portion of the self-employment income of an individual credited
to a year after 2017 in excess of the higher of $300,000 or
such contribution and benefit base.''.
(c) Conforming Amendment.--Section 215(e)(1) of the Social Security
Act (42 U.S.C. 415(e)(1)) is amended by inserting ``and before 2018''
after ``1974''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to individuals who initially become eligible (within
the meaning of section 215(a)(3)(B) of the Social Security Act) for
old-age or disability insurance benefits under title II of the Social
Security Act, or who die (before becoming eligible for such benefits),
in any calendar year after 2017.
SEC. 4. MODIFICATION OF AMOUNT OF SOCIAL SECURITY BENEFITS INCLUDED IN
GROSS INCOME.
(a) In General.--Section 86 of the Internal Revenue Code of 1986 is
amended by striking subsections (a), (b), and (c) and inserting the
following:
``(a) In General.--Gross income for the taxable year of any
taxpayer described in subsection (b) (notwithstanding section 207 of
the Social Security Act) includes social security benefits in an amount
equal to the lesser of--
``(1) 85 percent of the social security benefits received
during the taxable year, or
``(2) 85 percent of the excess described in subsection (b).
``(b) Taxpayers to Whom Subsection (a) Applies.--A taxpayer is
described in this subsection if--
``(1) the sum of--
``(A) the modified adjusted gross income of the
taxpayer for the taxable year, plus
``(B) 85 percent of the social security benefits
received during the taxable year, exceeds
``(2) $100,000.
``(c) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means adjusted gross
income--
``(1) determined without regard to this section and
sections 135, 137, 199, 221, 222, 911, 931, and 933, and
``(2) increased by the amount of interest received or
accrued by the taxpayer during the taxable year which is exempt
from tax.''.
(b) Social Security Trust Funds Held Harmless.--There are hereby
appropriated (out of any money in the Treasury not otherwise
appropriated) for each fiscal year to each fund under the Social
Security Act or the Railroad Retirement Act of 1974 an amount equal to
the reduction in the transfers to such fund for such fiscal year by
reason of the amendments made by subsection (a).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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