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Code · BILL · 114th Congress · H.R. 1984 (Introduced in House) — To amend the Internal Revenue Code of 1986 and title II of the Social Security Act to repeal the cap on compensation... · Sec. 3

Sec. 3. Reallocation of payroll tax revenue

369 words·~2 min read·/bill/114/hr/1984/ih/section-3

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With respect to that portion of wages (as defined in section 3121 of the Internal Revenue Code of 1986) paid during calendar year 2016 that would not be considered wages but for the amendment made by section 2(a), and with respect to that portion of self-employment income (as defined in section 1402 of the Internal Revenue Code of 1986) reported for any taxable year beginning during such calendar year that would not be considered self-employment income but for the amendment made by section 2(b), paragraphs (1)(R) and (2)(R) of section 201(b) of the Social Security Act ( 42 U.S.C. 401(b) ) shall each be applied by substituting 12.40 per centum for 1.80 per centum .
Section 201(b)(1) of the Social Security Act ( 42 U.S.C. 401(b)(1) ) is amended by striking and
(R)1.80 per centum of the wages (as so defined) paid after December 31, 1999, and so reported and inserting
(R)1.80 per centum of the wages (as so defined) paid after December 31, 1999, and before January 1, 2033, and so reported,
(S)1.60 per centum of the wages (as so defined) paid after December 31, 2032, and before January 1, 2050, and so reported, and
(T)1.80 per centum of the wages (as so defined) paid after December 31, 2049, and so reported . Section 201(b)(2) of such Act ( 42 U.S.C. 401(b)(2) ) is amended by striking and
(R)1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999 and inserting
(R)1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 1999, and before January 1, 2033,
(S)1.60 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2032, and before January 1, 2050,
(T)1.80 per centum of the amount of self-employment income (as so defined) so reported for any taxable year beginning after December 31, 2049 . The amendments made by this section shall apply with respect to wages paid after December 31, 2015, and self-employment income for taxable years beginning after such date.
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Sec. 3
Reallocation of payroll tax revenue
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