Save Social Security Act of 2021
This bill modifies the requirements for Social Security payroll taxes and benefits to
(Under current law, Social Security payroll taxes apply to the first $142,800 of income in 2021 and a portion of benefits is included in the gross income of individuals with certain income that exceeds specified thresholds, depending on the individual's filing status.)
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2304 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2304
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
April 1, 2021
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 2021''.
SEC. 2. DETERMINATION OF WAGES AND SELF-EMPLOYMENT INCOME ABOVE
CONTRIBUTION AND BENEFIT BASE AFTER 2021.
(a) Determination of Wages Above Contribution and Benefit Base
After 2021.--
(1) Amendments to the internal revenue code.--
(A) In general.--Section 3121(a)(1) 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 $400,000, 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 $400,000.''.
(B) Conforming amendment.--Section 3121(a)(1) of
such Code is amended by striking ``Act) to'' and
inserting ``Act), or in excess of $400,000, 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 $400,000, and, for
such calendar years, only to the extent remuneration paid to
such employee by such employer with respect to employment does
not exceed $400,000''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to remuneration paid in calendar years
after 2021.
(b) Determination of Self-Employment Income Above Contribution and
Benefit Base After 2021.--
(1) Amendments to the internal revenue code.--
(A) In general.--Section 1402(b)(1) 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 $400,000 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 $400,000 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 $400,000 over such
contribution and benefit base.''.
(B) Phaseout.--Section 1402(b) of such Code 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 $400,000.''.
(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
2022'' 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 2021, 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 $400,000 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 $400,000 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 $400,000 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 $400,000.''.
(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 2021.
SEC. 3. INCLUSION OF EARNINGS OVER $400,000 IN SOCIAL SECURITY BENEFIT
FORMULA.
(a) Inclusion of Earnings Over $400,000 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 2021 in excess of
the higher of $400,000 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 2021 in excess of the higher of $400,000 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 2022''
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 2021.
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.
Referred to the Subcommittee on Social Security.
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