HR 6242
110th CONGRESS
2d Session
H. R. 6242
To amend the Internal Revenue Code of 1986 to repeal the 1993 income
tax increase on Social Security benefits, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 11, 2008
Mrs. MUSGRAVE introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal the 1993 income
tax increase on Social Security benefits, 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 `Senior Citizens' Tax Relief Act of 2008'.
SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.
(a) Restoration of Prior Law Formula- Subsection (a) of section 86 of the
Internal Revenue Code of 1986 is amended to read as follows:
`(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) one-half of the Social Security benefits received during the taxable
year, or
`(2) one-half of the excess described in subsection (b)(1).'.
(b) Repeal of Adjusted Base Amount- Subsection (c) of section 86 of such Code
is amended to read as follows:
`(c) Base Amount- For purposes of this section, the term `base amount' means--
`(1) except as otherwise provided in this subsection, $34,000,
`(2) $44,000 in the case of a joint return, and
`(3) zero in the case of a taxpayer who--
`(A) is married as of the close of the taxable year (within the meaning
of section 7703) but does not file a joint return for such year, and
`(B) does not live apart from his spouse at all times during the taxable
year.'.
(c) Conforming Amendments-
(1) Subparagraph (A) of section 871(a)(3) of such Code is amended by striking
`85 percent' and inserting `50 percent'.
(2)(A) Subparagraph (A) of section 121(e)(1) of the Social Security Amendments
of 1983 (Public Law 98-21) is amended--
(i) by striking `(A) There' and inserting `There';
(ii) by striking `(i)' immediately following `amounts equivalent to';
and
(iii) by striking `, less (ii)' and all that follows and inserting a period.
(B) Paragraph (1) of section 121(e) of such Act is amended by striking subparagraph
(B).
(C) Paragraph (3) of section 121(e) of such Act is amended by striking subparagraph
(B) and by redesignating subparagraph (C) as subparagraph (B).
(D) Paragraph (2) of section 121(e) of such Act is amended in the first
sentence by striking `paragraph (1)(A)' and inserting `paragraph (1)'.
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments
made by this section shall apply to taxable years beginning after December
31, 2007.
(2) SUBSECTION (c)(1)- The amendment made by subsection (c)(1) shall apply
to benefits paid after December 31, 2007.
(3) SUBSECTION (c)(2)- The amendments made by subsection (c)(2) shall apply
to tax liabilities for taxable years beginning after December 31, 2007.
SEC. 3. MAINTENANCE OF TRANSFERS TO HOSPITAL INSURANCE TRUST FUND.
(a) In General- There are hereby appropriated to the Hospital Insurance Trust
Fund established under section 1817 of the Social Security Act amounts equal
to the reduction in revenues to the Treasury by reason of the enactment of
this Act. Amounts appropriated by the preceding sentence shall be transferred
from the general fund at such times and in such manner as to replicate to
the extent possible the transfers which would have occurred to such Trust
Fund had this Act not been enacted.
(b) Reports- The Secretary of the Treasury or the Secretary's delegate shall
annually report to the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate the amounts and timing of the transfers
under this section.
END
