Sec. 4. Establishment of payroll surtax for high-income individuals
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Section 1401 of the Internal Revenue Code of 1986 is amended— by redesignating subsection
(c)as subsection (d), and by inserting after subsection
(b)the following new subsection: In addition to the taxes imposed by the preceding subsections, there is hereby imposed on every individual for each taxable year beginning after December 31, 2014, a tax equal to 4 percent of additional self-employment income for such taxable year. For purposes of paragraph (1), the term additional self-employment income means, for any taxable year, the amount (not less than zero) equal to the excess of— the sum of self-employment income (determined without regard to section 1402(b)(1)) for the taxable year and wages (as defined in section 3121(a), determined without regard to paragraph
(1)thereof) paid to such individual during such taxable year, over the sum of the additional wages (as defined in section 3101(c)(2)) paid to such individual for the taxable year and the amount determined under paragraph
(3)for the taxable year. Rules similar to the rules of subparagraph
(A)of the second sentence of section 1402(b) shall apply for purposes of determining wages under clause (i). The amount determined under this paragraph is an amount equal to— in the case of a taxable year beginning after December 31, 2014, and before January 1, 2016, $400,000, and in the case of any taxable year beginning after December 31, 2015, the product of— $400,000, and the quotient obtained by dividing— the national average wage index (as defined in section 209(k)(1)) for the calendar year which is 2 years before the calendar year in which the taxable year begins, by the national average wage index for calendar year 2013. . Section 3101 of the Internal Revenue Code of 1986 is amended— by redesignating subsection
(c)as subsection (d), and by inserting after subsection
(b)the following new subsection: In addition to the taxes imposed by the preceding subsections, there is hereby imposed on the income of every individual a tax equal to 2 percent of additional wages (as defined in paragraph (2)) which are received with respect to employment during any calendar year beginning after December 31, 2014. For purposes of paragraph (1), the term additional wages has the same meaning given the term wages under section 3121(a) (determined without regard to paragraph
(1)thereof), except that such term shall not include that amount of remuneration that is less than— for calendar year 2015, $400,000, and for any calendar year after 2015, the product of— $400,000, and the quotient obtained by dividing— the national average wage index (as defined in section 209(k)(1)) for the second preceding calendar year, by the national average wage index for calendar year 2013. . Section 3111 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In addition to the taxes imposed by subsections
(a)and (b), there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to 2 percent of additional wages (as defined in paragraph (2)) paid by the employer with respect to employment during any calendar year beginning after December 31, 2014. For purposes of paragraph (1), the term additional wages has the same meaning given such term under section 3101(c). . Section 3201 of the Internal Revenue Code of 1986 is amended— by redesignating subsection
(c)as subsection (d), and by inserting after subsection
(b)the following new subsection: In addition to the taxes imposed by the preceding subsections, there is hereby imposed on the income of each employee a tax equal to 2 percent of additional compensation (as defined in paragraph (2)) received by such employee during any calendar year beginning after December 31, 2014, for services rendered by such employee. For purposes of paragraph (1), the term additional compensation has the same meaning given the term compensation under section 3231(e) (determined without regard to paragraph
(2)thereof), except that such term shall not include that amount of remuneration that is less than— for calendar year 2015, $400,000, and for any calendar year after 2015, the product of— $400,000, and the quotient obtained by dividing— the national average wage index (as defined in section 209(k)(1)) for the second preceding calendar year, by the national average wage index for calendar year 2013. . Section 3211 of the Internal Revenue Code of 1986 is amended— by redesignating subsection
(c)as subsection (d), and by inserting after subsection
(b)the following new subsection: In addition to the taxes imposed by the preceding subsections, there is hereby imposed on the income of each employee representative a tax equal to 4 percent of additional compensation (as defined under section 3201(c)) received by such employee representative during any calendar year beginning after December 31, 2014, for services rendered by such employee representative. . Section 3221 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In addition to the taxes imposed by subsections
(a)and (b), there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to 2 percent of additional compensation (as defined under section 3201(c)) paid by such employer during any calendar year beginning after December 31, 2014, for services rendered to such employer. . Section 15A(b)(1)(A) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231n–1(b)(1)(A) ) is amended by striking sections 3201(a), 3211(a)(1), and 3221(a) of the Railroad Retirement Tax Act and inserting subsections
(a)and
(c)of section 3201, subsections
(a)and
(c)of section 3211, and subsections
(a)and
(e)of . section 3221 of the Internal Revenue Code of 1986 Section 201 of the Social Security Act ( 42 U.S.C. 401 ) is amended— in subsection (b)(3)— by inserting and additional wages (as defined in section 1402(c) of such Code) after section 3121 of such Code) , by inserting and additional wages after such wages , by inserting and additional wages after which wages , and by inserting and additional wages after records of wages , in subsection (b)(4)— by inserting and additional self-employment income (as defined in section 3101(c) of such Code) after section 1402 of such Code) , by inserting and additional self-employment income after such self-employment income , by inserting and additional self-employment income after which self-employment income , and by inserting and additional self-employment income after records of self-employment income , in subsection (c)(1)(R)— by inserting and additional wages (as so defined) after wages (as so defined) , by inserting and additional wages after which wages , and by inserting and additional wages after records of wages , and in subsection (c)(2)(R)— by inserting and additional self-employment income (as so defined) after self-employment income (as so defined) , by inserting and additional self-employment income after which self-employment income , and by inserting and additional self-employment income after records of self-employment income . Section 209 of the Social Security Act ( 42 U.S.C. 409 ) is amended by adding at the end the following new subsection: For purposes of this title, the term additional wages has the same meaning given the term wages (determined without regard to subsection (a)(1)), except that such term shall not include that amount of remuneration that is less than— for calendar year 2015, $400,000, and for any calendar year after 2015, the product of— $400,000, and the quotient obtained by dividing— the national average wage index (as defined in section 209(k)(1)) for the second preceding calendar year, by the national average wage index for calendar year 2013. . Section 211 of the Social Security Act ( 42 U.S.C. 411 ) is amended by adding at the end the following new subsection: For purposes of this title, the term additional self-employment income means, for any taxable year, the amount equal to the excess (if any) of— the sum of self-employment income (determined without regard to subsection (b)(1)) for the taxable year and wages (as defined in section 209(a), determined without regard to paragraph
(1)thereof) paid to such individual during such taxable year, over the sum of the additional wages paid to such individual for the taxable year and the amount determined under paragraph
(2)for the taxable year. The amount determined under this paragraph is an amount equal to— in the case of a taxable year beginning after December 31, 2014, and before January 1, 2016, $400,000, and in the case of any taxable year beginning after December 31, 2015, the product of— $400,000, and the quotient obtained by dividing— the national average wage index (as defined in section 209(k)(1)) for the calendar year which is 2 years before the calendar year in which the taxable year begins, by the national average wage index for calendar year 2013. .
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- 45 USC 231n–1(b)(1)(A)
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Sec. 4
Establishment of payroll surtax for high-income individuals
Cite45 USC 231n–1(b)(1)(A)
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